ARLINGTON, Va., Sept. 13,
2022 /PRNewswire/ -- Raytheon Technologies (NYSE:
RTX) updates its free cash flow outlook for the impact of the
legislation requiring capitalization of Research and
Experimentation for tax purposes and, as previously discussed, it
now expects its full year 2022 free cash flow to be approximately
$4.0 billion instead of approximately
$6.0 billion.
The company reaffirms its full year outlook for sales of
$67.75 - $68.75 billion, adjusted earnings per share of
$4.60 - $4.80 and share repurchase of at least
$2.5 billion of RTX shares. The
company will provide further details on its third quarter earnings
call in October.
About Raytheon Technologies
Raytheon Technologies
Corporation is an aerospace and defense company that provides
advanced systems and services for commercial, military and
government customers worldwide. With four industry-leading
businesses ― Collins Aerospace, Pratt & Whitney, Raytheon
Intelligence & Space and Raytheon Missiles & Defense ― the
company delivers solutions that push the boundaries in avionics,
cybersecurity, directed energy, electric propulsion, hypersonics,
and quantum physics. The company, formed in 2020 through the
combination of Raytheon Company and the United Technologies
Corporation aerospace businesses, is headquartered in Arlington, Virginia.
Use and Definitions of Non-GAAP Financial
Measures
Raytheon Technologies Corporation ("RTC") reports
its financial results in accordance with accounting principles
generally accepted in the United
States ("GAAP").
We supplement the reporting of our financial information
determined under GAAP with certain non-GAAP financial information.
The non-GAAP information presented provides investors with
additional useful information, but should not be considered in
isolation or as substitutes for the related GAAP measures.
Moreover, other companies may define non-GAAP measures differently,
which limits the usefulness of these measures for comparisons with
such other companies. We encourage investors to review our
financial statements and publicly-filed reports in their entirety
and not to rely on any single financial measure.
Adjusted earnings per share ("EPS") is a non-GAAP financial
measure that represents diluted earnings per share from continuing
operations (a GAAP measure), excluding restructuring costs,
acquisition accounting adjustments and other significant items.
Free cash flow is a non-GAAP financial measure that represents
cash flow from operations (a GAAP measure) less capital
expenditures. Management believes free cash flow is a useful
measure of liquidity and an additional basis for assessing RTC's
ability to fund its activities, including the financing of
acquisitions, debt service, repurchases of RTC's common stock and
distribution of earnings to shareowners.
When we provide our expectations for adjusted EPS and free cash
flow on a forward-looking basis, a reconciliation of the
differences between the non-GAAP expectations and the corresponding
GAAP measures (expected diluted EPS from continuing operations and
expected cash flow from operations, respectively) generally is not
available without unreasonable effort due to potentially high
variability, complexity and low visibility as to the items that
would be excluded from the GAAP measure in the relevant future
period, such as unusual gains and losses, the ultimate outcome of
pending litigation, fluctuations in foreign currency exchange
rates, the impact and timing of potential acquisitions and
divestitures, and other structural changes or their probable
significance. The variability of the excluded items may have a
significant, and potentially unpredictable, impact on our future
GAAP results.
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains statements which, to
the extent they are not statements of historical or present fact,
constitute "forward-looking statements" under the securities laws.
From time to time, oral or written forward- looking statements may
also be included in other information released to the public. These
forward-looking statements are intended to provide Raytheon
Technologies Corporation ("RTC") management's current expectations
or plans for our future operating and financial performance, based
on assumptions currently believed to be valid. Forward-looking
statements can be identified by the use of words such as "believe,"
"expect," "expectations," "plans," "strategy," "prospects,"
"estimate," "project," "target," "anticipate," "will," "should,"
"see," "guidance," "outlook," "goals," "objectives," "confident,"
"on track" and other words of similar meaning. Forward-looking
statements may include, among other things, statements relating to
future sales, earnings, cash flow, results of operations, uses of
cash, share repurchases, tax payments and rates, research and
development spending, cost savings, other measures of financial
performance, potential future plans, strategies or transactions,
credit ratings and net indebtedness, other anticipated benefits to
RTC of the United Technologies Corporation ("UTC") acquisition of
Rockwell Collins in 2018, the merger (the "merger") between UTC and
Raytheon Company ("Raytheon")) or the spin-offs by UTC of Otis
Worldwide Corporation and Carrier Global Corporation into separate
independent companies (the "separation transactions"), including
estimated synergies and customer cost savings resulting from
the merger and the anticipated benefits and costs of the separation
transactions and other statements that are not solely historical
facts. All forward-looking statements involve risks, uncertainties
and other factors that may cause actual results to differ
materially from those expressed or implied in the forward-looking
statements. For those statements, we claim the protection of the
safe harbor for forward-looking statements contained in the U.S.
Private Securities Litigation Reform Act of 1995. Such risks,
uncertainties and other factors include, without limitation: (1)
the effect of changes in global economic, capital market and
political conditions in the U.S. and globally, such as from the
global sanctions and export controls with respect to Russia, and any changes therein, including
related to financial market conditions, fluctuations in commodity
prices, inflation, interest rates and foreign currency exchange
rates, disruptions in global supply chain and labor markets, and
geopolitical risks; (2) risks associated with U.S. government
sales, including changes or shifts in defense spending due to
budgetary constraints, spending cuts resulting from sequestration
or the allocation of funds to governmental responses to COVID-19, a
continuing resolution, a government shutdown, or otherwise, and
uncertain funding of programs; (3) challenges in the development,
production, delivery, support, and performance of RTC advanced
technologies and new products and services and the realization of
the anticipated benefits (including our expected returns under
customer contracts), as well as the challenges of operating in
RTC's highly- competitive industries; (4) the effect of and risks
relating to the coronavirus disease 2019 (COVID-19) pandemic on
RTC's business, supply chain, operations and the industries in
which it operates, including the decrease in global air travel, and
the timing and extent of the recovery from COVID-19; (5) risks
relating to RTC international operations from, among other things,
changes in trade policies and implementation of sanctions, foreign
currency fluctuations, economic conditions, political factors,
sales methods, and U.S. or local government regulations; (6) the
condition of the aerospace industry; (7) risks relating to RTC's
reliance on U.S. and non-U.S. suppliers and commodity markets,
including the effect of sanctions, delays and disruptions in the
delivery of materials and services to RTC or its suppliers and
price increases; (8) the scope, nature, timing and challenges of
managing acquisitions, investments, divestitures and other
transactions, including the realization of synergies and
opportunities for growth and innovation, the assumption of
liabilities and other risks and incurrence of related costs and
expenses; (9) compliance with legal, environmental, regulatory
and other requirements, including, among other things, export and
import requirements such as the International Traffic in Arms
Regulations and the Export Administration Regulations, anti-bribery
and anticorruption requirements, such as the Foreign Corrupt
Practices Act, industrial cooperation agreement obligations, and
procurement and other regulations in the U.S. and other countries
in which RTC and its businesses operate; (10) the outcome of
pending, threatened and future legal proceedings, investigations
and other contingencies, including those related to U.S. government
audits and disputes; (11) factors that could impact RTC's ability
to engage in desirable capital-raising or strategic transactions,
including its capital structure, levels of indebtedness, capital
expenditures and research and development spending, and the
availability of credit, credit market conditions and other factors;
(12) uncertainties associated with the timing and scope of
future repurchases by RTC of its common stock or declarations of
cash dividends, which may be discontinued, accelerated, suspended
or delayed at any time due to various factors, including market
conditions and the level of other investing activities and uses of
cash; (13) the risks relating to realizing expected benefits from
RTC strategic initiatives such as cost reduction, restructuring,
digital transformation and other operational initiatives; (14) the
risks relating to the integration of legacy businesses of UTC and
RTC as well as the merger, and the realization of the anticipated
benefits of those transactions; (15) risks of additional tax
exposures due to new tax legislation or other developments, in the
U.S. and other countries in which RTC and its businesses operate;
(16) the ability of RTC to attract, train and retain qualified
personnel and maintain its culture and high ethical standards, and
the ability of our personnel to continue to operate our facilities
and businesses around the world; (17) risks relating to a RTC
product safety failure or other failure affecting RTC's or its
customers' or suppliers' products or systems; (18) risks relating
to cyber-attacks on RTC's information technology infrastructure,
products, suppliers, customers and partners, threats to RTC
facilities and personnel, as well as other events outside of RTC's
control such as public health crises, damaging weather or other
acts of nature; (19) the effect of changes in accounting estimates
for our programs on our financial results; (20) the effect of
changes in pension and other postretirement plan estimates and
assumptions and contributions; (21) risks relating to an impairment
of goodwill and other intangible assets; (22) the effects of
climate change and changing climate-related regulations, customer
and market demands, products and technologies; and (23) the
intended qualification of (i) the merger as a tax-free
reorganization and (ii) the separation transactions and other
internal restructurings as tax-free to UTC and former UTC
shareowners, in each case, for U.S. federal income tax purposes.
For additional information on identifying factors that may cause
actual results to vary materially from those stated in
forward-looking statements, see the reports of RTC, UTC and
Raytheon on Forms S-4, 10-K, 10-Q and 8-K filed with or furnished
to the Securities and Exchange Commission from time to time. Any
forward-looking statement speaks only as of the date on which it is
made, and RTC assumes no obligation to update or revise such
statement, whether as a result of new information, future events or
otherwise, except as required by applicable law.
Media Contact
C: 202.384.2474
Investor Contact
C: 781.522.5123
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