By CBJ News Staff
The new Raytheon Technologies Corp. launched today, giving Collins Aerospace in Cedar Rapids a new and more powerful corporate parent.
The all-stock merger of equals between Raytheon Co. and United Technologies Corp. creates a global giant in aerospace and defense, with pro-forma combined sales of about $74 billion last year.
Opening day trading called attention to the rocky economic climate in which the new company has been created. As the market responded to an unexpectedly horrible jobless claims report due to the coronavirus pandemic, market indices fell and shares of the new company’s stock, trading as RTX, were down 4.5% by 10 a.m., to just under $117 per share on the New York Stock Exchange.
Raytheon Technologies leadership used the company’s day in the spotlight to discuss its ample capabilities.
“Raytheon Technologies brings together two companies with combined strengths and capabilities that make us uniquely equipped to support our customers and partners during this unprecedented time,” CEO Greg Hayes said in a news release. “We will also play our part in the war on the COVID-19 pandemic, including doing everything we can to keep our employees around the globe safe and well.”
Executive Chairman Tom Kennedy called the newly formed company “an innovation powerhouse that will deliver advanced technologies that push the boundaries of known science.”
The company is composed of four business units:
- Collins Aerospace, which specializes in aerostructures, avionics, interiors, mechanical systems, mission systems and power controls that serve customers across the commercial, regional, business aviation and military sectors. The segment is led by President Stephen Timm, and headquartered in Charlotte, North Carolina, with approximately $26 billion in 2019 net sales.
- Pratt & Whitney, which designs, manufactures and services aircraft engines and auxiliary power systems for commercial, military and business aircraft. The segment is led by President Chris Calio, and headquartered in East Hartford, Connecticut, with approximately $21 billion in 2019 net sales.
- Raytheon Intelligence & Space, which specializes in developing advanced sensors, training, and cyber and software solutions. The segment is led by President Roy Azevedo, and headquartered in Arlington, Virginia, with approximately $15 billion in pro forma 2019 net sales.
- Raytheon Missiles & Defense, which provides the industry’s most advanced end-to-end solutions to detect, track and engage threats. The segment is led by President Wes Kremer, and headquartered in Tucson, Arizona, with approximately $16 billion in pro forma 2019 net sales.