September 15, 2021
(Reuters) -Raytheon Technologies, a customer of commercial aircraft manufacturers Boeing and Airbus, expects to face inflationary pressures in the coming years, its CEO said Wednesday.
The company will feel a little pressure as the costs of raw materials and precious metals rise, CEO Gregory Hayes said at the Morgan Stanley Laguna conference.
However, Hayes added that Raytheon’s long-term supply contract will take time for customers to incur costs in the form of rising prices.
“The shortages there are real, especially on the logistics side … and inflation, especially on the commodity side, is real, and we’re starting to see it on the labor side as well.”
U.S. aerospace manufacturers, which raised their full-year earnings forecasts in July against the backdrop of rising demand for commercial engines, spare parts and aftermarket services, said this trend continues despite concerns from Delta variants. Told.
The Waltham, Massachusetts-based company expects a full recovery of commercial aviation units in 2024, and President Joe Biden’s vaccine mission will strengthen the outlook for the fourth quarter. increase.
(Report by Shreyasee Raj; edited by Shailesh Kuber)
Raytheon CEO expects inflationary pressure in the coming years
Source link Raytheon CEO expects inflationary pressure in the coming years