Key Insights: Why September Matters for RTX Investors
September could be a make-or-break month for (NYSE: RTX), formerly known as Raytheon Technologies. In July, investors were hit with an investment punch to the solar plexus with the news that its Pratt Whitney business would have to remove engines from service for inspection. However, it's possible management will be able to update investors on the issue this month. Here's why it's so crucial for investors.
The issue relates to the possibility of contamination in powdered metal RTX makes and uses on turbine discs on the geared turbofan engine (GTF). The GTF matters to RTX, as it's one of two options on the Airbus A320neo aircraft -- one of the workhorses of the skies alongside the Boeing 737 MAX -- and its flagship airplane engine.
The issue doesn't impact newer engines produced; the condition was only present in rare instances in engines produced between the fourth quarter of 2015 and the third quarter of 2021.
Source Fool.com
