Aviation and defense giant RTX reported a loss Tuesday on hefty costs tied to an engine quality control problem as it boosted its share repurchase program.
The company reported a loss of $984 million in the third quarter, compared with a $1.4 billion profit in the year-ago period as revenues fell 21 percent to $13.5 billion.
The lower revenues include the effect of a $5.4 billion one-time charge on the Pratt & Whitney engine issue, which concerned what the company characterized as “contamination” in powdered metal used to manufacture engine parts.
RTX, which has called the matter a quality control issue with no immediate risk to flight safety, said in July that it would inspect a “significant portion” of the Airbus A320neo fleet employing engines that may have been affected by the problem.
In September, the company said it planned around 600-700 engine inspections between 2023 and 2026.
RTX Chief Executive Greg Hayes said the company had made “significant progress” in tackling the problem.
“We are now focused on executing on our fleet management plans and are working relentlessly to mitigate further disruption to our customers,” Hayes said. “We do not expect any significant future incremental impact as a result of these fleet management plans.”
Citing “historic” strong demand across commercial aviation and defense, RTX announced a significant ramp-up in its share repurchase plan to $12.8 billion from the prior $3.0 billion.
Shares jumped 9.6 percent in pre-market trading.