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| Statement |
|---|
| It continues to be very strong |
| But again, feel really good about the engine going forward |
| Also, we feel really good about where the portfolio is today |
| So just step back feel really good about the prospects on the program and the volumes and where we think we can take it |
| So again, feel good about the trajectory ultimately of the GTF aftermarket, as we work through powdered metal which of course it's no small challenge |
| And then well positioned on the fastest-growing commercial platforms both Collins and at Pratt |
| So I feel really, really good about that |
| And so as these programs continue to age, we continue to get better pricing I think people see the benefit of the technology we're going to bring |
| On Raytheon, it's about delivering out the backlog at the margins that we said that improved margins |
| So continue to believe there's going to be strong demand for the product |
| But if you just think longer term on this program again, we feel really good about it |
| So again, I view that as a positive I think the market share that we've got today is on or about 40% |
| So CORE customer-oriented results and excellence |
| And we really believe that we'll continue to drive margins clearly above where they are today |
| That's the really positive thing |
| So again, well positioned I think on the fastest-growing platforms that will help us both in terms of OE and then long aftermarket tails, but I think we're going to continue to enjoy |
| If you just think about on both sides of the house really, really well positioned |
| So you start to see that growth moderate a bit but still, again, very strong 10% year-over-year |
| And if you think about our business, long-cycle business scale and breadth truly our competitive advantage |
| They've done a fantastic job driving demand for their product |
| And we're well positioned on, I think, all those platforms both Collins and Pratt |
| And on the aftermarket side, I can say look tremendous growth in 2023 |
| As you know we've got some fantastic partners in our GTF MRO network: MTU, Delta TechOps, Lufthansa and others |
| So that's good |
| We upped the capital return commitment to $36 billion to $37 billion through 2025, and we're well on our way satisfying that and no change to the dividend approach |
| And so we share best practices throughout that network, to go figure out work scopes, how to take days out of turnaround time anything we can do to take that 250 and 300 and make it better to get our customers as much lift as possible |
| So, again, a lot of exciting things going on at RTX |
| If you think about 2024, we're thinking about 10% year-over-year commercial aftermarket growth, again, on the back of incredibly strong 23% the year before |
| So I feel like this business can generate significant cash that we can continue to reinvest in the business in technology to continue to build franchises for the future |
| I would say towards the end of the year we start to see sort of a positive trend there |
| Statement |
|---|
| Obviously, we've had some margin headwind last year |
| David Strauss There are concerns around market share profitability, particularly around the aftermarket and the long-term service agreement |
| I think the product is on the Raytheon side since the merger has been kind of slower than expected |
| So continued headwinds from an inflationary perspective |
| Obviously we've got some of these headwinds on powdered metal in front of us right now and in terms of its aftermarket impact |
| You've had some challenges with fixed price development programs |
| And when you've got on-time delivery issues that ends up extending the period of performance in your contracts which means you're going to go drive more cost and have potentially negative EACs |
| I would say we certainly had our challenges |
| Not from a cost perspective I would tell you that it is still the challenge |
| Defense franchises that meet the needs of today, given the geopolitical uncertainty that's out there |
| David Strauss Supply chain, you've talked a lot about the challenges there, both in your aerospace businesses but as well as your defense businesses |
| I think when you think about our headwinds -- Raytheon's headwinds in 2023 profit headwinds it'd be kind of two categories |
| And I think one of the questions that people have asked us about well hey you have to maintain that market share through be really aggressive on pricing |
| If you think about the GTF MRO output last year, it was up about 30% year-over-year, but we need to continue to take that up a notch obviously given the number of removals |
| We believe it's only upwards from here |
| Unfortunately, given the situation we find ourselves in a world about a $52 billion backlog |
| And when you think of Pratt, obviously, with the GTF, we'll talk about some of the challenges, we're working through now but that program is much larger than we had ever anticipated |
| I think it has come up for a while |
| And then on meetings are 30% in terms of headwinds I would call that supply chain/inflation |
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