Raytheon Technologies(RTX) - 2024 Q2 - Quarterly Report

Sales Performance - Net sales for the quarter ended June 30, 2024, increased by $1.9 billion to$19.721 billion compared to 18.315 billion in the same quarter of 2023, driven by higher sales at Pratt & Whitney, Collins, and Raytheon[168]. - For the six months ended June 30, 2024, net sales rose by 4.0 billion to $39.026 billion from$35.529 billion in the same period of 2023, primarily due to increases at Pratt & Whitney and Collins[168]. - For the quarter ended June 30, 2024, the consolidated net sales were $39.026 billion, an increase from$35.529 billion in the same quarter of 2023, representing a growth of approximately 7%[180]. - The consolidated net sales for the six months ended June 30, 2024, were $26.198 billion, compared to$24.198 billion in the same period of 2023, reflecting a growth of approximately 8%[182]. - The total business segment sales for the quarter ended June 30, 2024, were $39.026 billion, compared to$35.529 billion in the same quarter of 2023, indicating a growth of approximately 10%[180]. Product Sales and Costs - Net products sales increased by 1.2 billion in the quarter ended June 30, 2024, with Pratt & Whitney contributing 0.7 billion, Collins $0.4 billion, and Raytheon$0.1 billion[169]. - Net products cost of sales increased by 1.5 billion in the quarter ended June 30, 2024, driven by higher costs at Pratt & Whitney, Raytheon, and Collins[175]. Government Sales - The U.S. government accounted for 16.179 billion, or 41.5%, of total net sales in the six months ended June 30, 2024, compared to $15.515 billion, or 43.7$0.1 billion increase in customer-funded R&D for the six months ended June 30, 2024, primarily due to higher expenses at Collins and Pratt & Whitney[177]. Legal and Other Expenses - The decrease in Other income (expense), net for the quarter ended June 30, 2024, was $0.9 billion, primarily due to a charge related to the Expected Resolution of Certain Legal Matters[179]. - The company reported a charge of$0.9 billion related to legal matters, impacting the overall financial performance for the quarter ended June 30, 2024[179]. Cash Flow and Debt - Net cash flows provided by operating activities for the six months ended June 30, 2024, were $3,075 million, a significant increase from$(144) million in the same period of 2023[303]. - Net cash flows used in investing activities for the six months ended June 30, 2024, were $(40) million, compared to$(1,202) million in the same period of 2023[305]. - Net cash flows used in financing activities for the six months ended June 30, 2024, were $(3,591) million, a decrease from$468 million in the same period of 2023[306]. - Total debt as of June 30, 2024, was $42,151 million, down from$43,827 million on December 31, 2023[300]. - Total equity as of June 30, 2024, was $60,650 million, compared to$61,410 million on December 31, 2023[300]. - The total debt to total capitalization ratio improved to 41% as of June 30, 2024, from 42% at the end of 2023[300]. - The company made repayments of long-term debt totaling $1,700 million during the six months ended June 30, 2024[302]. Dividends - The company declared a dividend of$0.63 per share on June 3, 2024, payable on September 5, 2024[306]. Geopolitical Risks - The defense operations are influenced by U.S. Department of Defense budget levels and geopolitical risks, which may impact sales and operations[160]. - The company continues to monitor potential impacts from geopolitical tensions, particularly in the Middle East, but has reported minimal effects on operations to date[164]. Segment Performance - Collins Aerospace reported sales of $9.860 billion for the quarter ended June 30, 2024, compared to$9.053 billion in the same quarter of 2023, reflecting an increase of approximately 9%[180]. - Pratt & Whitney's sales for the quarter ended June 30, 2024, were $7.806 billion, up from$6.251 billion in the same quarter of 2023, marking an increase of about 25%[180]. - The total defense bookings for Collins in the quarter ended June 30, 2024, included $1.9 billion for the U.S. Air Force's next-generation Survivable Airborne Operations Center[287]. Other Operating Profit - The increase in Other operating profit for the six months ended June 30, 2024, was$0.2 billion, reflecting the absence of a $181 million charge related to a customer insolvency in the prior year[290].