Why RTX Stock Lost Altitude in September
(NYSE: RTX) has quantified the financial hit from a massive recall of one of its most popular aircraft engines, and investors felt the pain along with the company, as its shares fell 16.4% in September, according to data provided by S&P Global Market Intelligence.
The company, which until recently was known as Raytheon Technologies, is an aerospace conglomerate with businesses including Pratt Whitney aircraft engines. In July, the company disclosed it had discovered a problem with one of Pratt Whitney's mainstay designs, but at the time could not fully gauge the effect of the issue.
By mid-September, RTX was ready to detail the impact. The company said it would remove about 600 to 700 engines for inspection over the next three years, a costly endeavor that will require it to compensate airlines for downtime. The company said it would book a pre-tax operating-profit charge of at least $3 billion in the recently completed third quarter related to the issue.
Source Fool.com
