WALTHAM, Mass - Raytheon Technologies Corporation (NYSE: RTX) reported second quarter 2020 results.

* Sales of $14.1 billion

* Adjusted sales of $14.3 billion

* GAAP EPS from continuing operations of a loss of $2.56 and included $2.96 of net significant and/or non-recurring charges and acquisition accounting adjustments

* Adjusted EPS of $0.40

* Operating cash flow from continuing operations of $210 million

* Free cash flow of an outflow of $248 million

* Achieved ~$600 million of cost reduction and ~$1 billion of cash conservation actions

* Combined book-to-bill ratio of 1.20 at RIS and RMD segments

'During the quarter, we continued to deliver good performance in our defense business, while we saw challenges in commercial aerospace as expected,' said Raytheon Technologies CEO Greg Hayes. 'Looking ahead, we expect the pressures in commercial aerospace to persist as OEM production levels and aftermarket activity remain low. As a result, we are taking difficult but necessary actions to strengthen the business, including achieving the previously announced cost and cash savings this year. At the same time, we continue to deliver cost synergies from the Rockwell Collins acquisition and the Raytheon merger.'

Hayes continued, 'I'm proud of what our team has accomplished in support of our customers, suppliers, and communities during this difficult time. Our balance sheet remains strong and the resiliency of our defense business will help us weather this storm as we continue to capitalize on growth opportunities supported by our record backlog. I am confident that our balanced portfolio and advanced technologies will position us for long-term value creation as the global economy recovers.'

See 'Use and Definitions of Non-GAAP Financial Measures' below for information regarding non-GAAP financial measures.

Raytheon Technologies reported second quarter sales of $14.1 billion and adjusted sales of $14.3 billion. GAAP EPS from continuing operations was a loss of $2.56 and included $2.96 of net significant and/or non-recurring charges and acquisition accounting adjustments, where $2.34 was related to charges due to the current economic environment primarily driven by the COVID-19 pandemic. Of the $2.34, $2.13 was related to an impairment of Collins Aerospace goodwill and intangibles. Other adjustments included $0.28 for acquisition accounting adjustments primarily related to intangible amortization and $0.21 for restructuring. Adjusted EPS was $0.40.

The company recorded a net loss from continuing operations in the second quarter of $3.8 billion, and included $4.4 billion of net significant and/or nonrecurring charges and acquisition accounting adjustments. Adjusted net income was $598 million. Operating cash flow from continuing operations in the second quarter was $210 million and better than expected primarily due to the timing of collections and execution on cash conservation actions. Capital expenditures were $458 million, resulting in a free cash outflow of $248 million. Free cash flow included $165 million of merger costs and restructuring.

Read more at: https://raytheon.mediaroom.com/2020-07-28-Raytheon-Technologies-Reports-Second-Quarter-2020-Results

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