Aerospace Sector

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>>> Raytheon Technologies Debuts On The Dow As Rival GE Deepens Cuts


Investor's Business Daily

APARNA NARAYANAN

04/03/2020


https://www.investors.com/news/raytheon-technologies-stock-debuts-dow-jones-industiral-average-ge-aviation-cuts/?src=A00220&yptr=yahoo


Raytheon Technologies (RTX), formerly known as United Technologies, debuted on the Dow Jones Industrial Average Friday after the closing of its massive merger.

United Technologies completed the separations of its Otis elevator and Carrier air-conditioning units early Friday, clearing the way for its merger with Raytheon Company.

The industrial giant and Raytheon agreed to merge in June 2019 in a $100 billion all-stock deal.

The new Raytheon Technologies stock is a formidable aerospace and defense pure play. With roughly $74 billion in net sales last year, it's overtake Boeing (BA) in aerospace/defense revenue as 737 Max planes remain grounded.

"The combined company expects to introduce breakthrough technologies at an accelerated pace across high-value areas such as hypersonics, directed energy, avionics and cybersecurity," Raytheon Technologies said in a statement. Greg Hayes, CEO of the former United Technologies, is chief of the new company.

The standalone Carrier Global (CARR) company makes its debut on the S&P 500 Friday and closed at 15.96. Otis Worldwide (OTIS), which also debuts on the S&P 500, settled at 47.11.

Raytheon's divisions include Pratt & Whitney, a jet-engine rival to GE Aviation. On Thursday, General Electric (GE) said it would furlough half of its aviation unit's engine manufacturing staff.

That followed last week's move to lay off 10% of the staff at jet-engine business, and the furlough of half of the maintenance and repair employees.

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