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RTX RTX.N is open to pruning and matching its existing businesses rather than “transformative” mergers and acquisitions, the aerospace giant’s chief executive said on Wednesday.
Speaking at a Morgan Stanley conference, Chief Executive Christopher Calio cited the sale of its Goodrich Hoist and Winch business in the second quarter as an example of deals the company could pursue.
RTX was formed in 2020 from the $121 billion merger of United Technologies Corp and Raytheon Co. It now houses companies including commercial aircraft engine maker Pratt & Whitney and aerospace equipment supplier Collins Aerospace.
The company’s customers include aircraft manufacturers Boeing BA.N and Airbus AIR.PA.
Calio said Wednesday that RTX is working with Boeing to calculate its production rates for 2025 and beyond, given that the U.S. planemaker is currently producing its best-selling plane, the 737 MAX, at a lower rate due to an ongoing crisis.
“It is clear that we have a lot of capacity beyond current rates. So we need to make sure that we are calibrated to how the situation evolves and that we have the right level of stock to deal with it,” he said.
Defense demand remains strong, with RTX’s weapons company Raytheon booking $8 billion so far in the third quarter, Calio added.
RTX is also working on a hybrid-electric technology demonstrator that combines a combustion engine and an electric motor, with the aim of improving energy efficiency by 30%.
Mr Calio said RTX was focusing on engine durability, having learned from recent quality issues with its GTF engines. He said the next generation of propulsion should first penetrate the small aircraft market.
RTX shares were down 1.1% in afternoon trading.
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