How Raytheon Technologies Will Survive Aerospace's Pandemic Slump
Last summer when United Technologies agreed to merge its aerospace business with Raytheon, the two management teams talked up the "balance" that would be achieved by combining UTX's commercial aerospace-heavy portfolio with Raytheon's defense-focused business. The goal, they said, was to create a company that could ride out the inevitable down cycles common to both the commercial aerospace and defense businesses.
Little did they know how soon that thesis would be put to the test. The two companies closed their deal on April 3, forming Raytheon Technologies (NYSE: RTX) just as the COVID-19 pandemic was causing the commercial aerospace sector to collapse. United Technologies shares had lost nearly half their value year-to-date prior to the deal closing, and absent the deal, the fall could have been much steeper.
Here's a look at the challenges that face Raytheon Technologies, and what investors should expect from the newly formed aerospace giant in the quarters to come.
Source Fool.com
