By Micah Maidenberg

Raytheon Technologies Corp. reported higher than expected sales in the fourth quarter as the company looks for a rebound in the airline sector and begins to navigate the Biden administration's priorities for defense spending.

The company behind Pratt & Whitney jet engines, all manner of parts used in aircraft sold through its Collins Aerospace unit and products such as missile systems on Tuesday reported a profit of $135 million, or 9 cents a share, down from $1.14 billion, or $1.33 a share, for the year-earlier period.

Excluding restructuring costs, one-time expenses and after other adjustments, Raytheon said it earned 74 cents a share. Analysts expected 69 cents a share for that metric, according to FactSet.

Sales increased to $16.42 billion from $11.69 billion year over year, a comparison affected by the completion of the company's merger with United Technologies in April of last year. That surpassed the consensus estimate for sales of $16.24 billion for the period.

Meanwhile, sales were up compared with the second and third quarters of last year, according to FactSet, when the pandemic's dramatic effects on the airline industry cut into demand for Raytheon's aerospace unit. Covid-19 vaccines are being distributed, but airlines expect the coronavirus to continue to hamper demand in the near term.

Raytheon said sales in the Collins unit were down 32% year over year in the fourth quarter.

"The decrease in commercial sales was driven primarily by the current environment which has resulted in lower flight hours, aircraft fleet utilization and commercial...deliveries, as well as the impact of the 737 MAX," the company said about the Collins business.

Sales fell 21% in the Pratt & Whitney business.

Meanwhile, the U.S. Senate confirmed Lloyd Austin for the top role at the Defense Department on Jan. 22 and he stepped down from the board effective the same day, according to a securities filing from Raytheon.

Write to Micah Maidenberg at micah.maidenberg@wsj.com

(END) Dow Jones Newswires

01-26-21 0735ET