UPDATE: Raytheon reports 10% sales growth and record backlog

By Bryan Corliss

April 25, 2023, © Leeham News – Raytheon reported a 10% increase in first-quarter sales and a record backlog of $180 billion in orders, amid what Chairman and CEO Greg Hayes called “continued global airline travel and defense systems demand.”

Among its commercial aircraft segments, Collins Aerospace had first-quarter sales of nearly $5.6 billion, up 16%. That was driven by a 24% increase in commercial aftermarket sales and a 12% increase in commercial original equipment sales.

Collins’ operating profit was up 80% from the first quarter of 2022, Raytheon said.

Meanwhile, Pratt & Whitney had first-quarter sales of $5.2 billion, up 15%, with a 27% increase in original equipment orders and a 14% increase in commercial aftermarket sales. 

Pratt& Whitney’s first quarter profit of $415 million was up 175% compared to the first quarter of 2022.

  • ‘Constant contact’ with OEMs on rates
  • Parts of supply chain stabilizing, COO says
  • Commercial aircraft sales lead growth
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Suppliers expect Boeing to increase 787 rates next year

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By Bryan Corliss

Dec. 19, 2023, © Leeham News: Boeing suppliers are planning to increase their output to support the OEM’s plan to deliver five new-built 787s a month at some point in 2023.

Boeing wants to increase the production rate of the 787 to 5/mo by the end of 2023 and to 10/mo by 2025. The supply chain must hurry to prepare. Credit: Leeham News.

It will be challenging for the top-tier suppliers to scale up operations dramatically. They’ll have to train and maintain larger teams of workers, while also ensuring that their own lower-tier suppliers have the capacity to deliver parts and components on time.

One executive warned investors this fall that the challenges in the year ahead will be greater than the ones the industry faced delivering record numbers of planes before the pandemic.

  • Howmet: ‘Back of the year, at around 5 per month’
  • Suppliers want more lead time given challenges
  • Whole supply chain is under stress

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De-carbonisation of air transport is ON

By Bjorn Fehrm

July 20, 2021, © Leeham News: Last week was a game-changing week for air transport. Three events synchronized to trigger it.

EU presented 13 policies to achieve net-zero greenhouse gas emissions by 2050 with concrete steps in-between. On the same day, the airframe and engine OEM’s CTOs said in a Farnborough Connect webcast: “It’s a commitment problem, not a technical problem to achieve the EU goals.”

This happened against a backdrop of European floodings, which made all discussions about climate change or not moot. Super-organized Germany lost over 100 persons to typhoon like rains, never seen before, that produced scenes like these: https://twitter.com/Aviation_Intel/status/1416215953080205321?s=20

Figure 1. Farnborough Connect, from top-left: Moderator Johnson, Boeing’s Hussein, GE’s Lorence, Rolls-Royce’s Stein, SAFRAN’s Dalbier, Raytheon Technologies’  Russel, and Airbus’ Klauke.

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