The Merger of Aerospace & Defense Giants - Raytheon & United Technologies
"The combination of United Technologies and Raytheon will define the future of aerospace and defense,"
United Technologies Chairman and CEO Greg Hayes
On April 3, 2020 in the middle of a worldwide pandemic, two Aerospace and Defense powerhouses, United Technologies and Raytheon, completed their year-long merger. In a deal that is one of the largest transactions in the industry's history (which is quite a feat in an industry that is full of mergers and acquisitions) - why would these companies feel the need to combine? Both companies appeared to be doing well independent of each other, innovating, and growing their businesses. From what I can see - diversification and resources were the primary drivers.
By joining forces, United Technologies, which historically focused on commercial and military engines, now has the opportunity to dive into Raytheon's stronghold in defense. This move allows United Technologies to expand its product offering from jet engines and missiles, into cockpit electronics, radars, and much more. It also positions the company to better withstand cost pressures, and market volatility - two things that are huge factors to success in this industry.
Another major benefit... with more resources, come more opportunities! With the merger, these companies are combining resources, and not just the financial kind - but also talent, knowledge, and so much more. This will allow for an increase in R&D, with the goal to improve the new offerings for each organization.
So...what’s next for Raytheon Technologies? How will they capitalize on this merger? Where will they focus their resources? How is the merger going? Are there any hiccups? These are all questions that if you’re an employee, supplier, customer, investor, or just someone with an interest in Raytheon, need to have answered.
At Acumen Learning, we’ve got you covered! On Wednesday, August 25 at 11 am Eastern, we’ll be hosting a free one-hour webinar on how to listen to an Earnings Call focused on Raytheon Technologies. During the webinar, we’ll walk you through three steps that will help you analyze Raytheon’s earnings call, and assist in the analysis of any call in the future. At the end of the course, we’ll even provide you with a free workbook to use in the future.
If you don’t have any financial experience or you’ve never listened to an earnings call before, don’t worry! We will break things down so they are easy to understand, and actionable for you and your team.
If you want to do your own research before the call here are some resources: