Raytheon Technologies, formerly known as United Technologies, made its debut on the Dow Jones Industrial Average on Friday following the completion of its massive consolidation.
United Technologies completed the separation of its air-conditioning units Otis elevator and Carrier early Friday, paving the way for its merger with Raytheon Group. The manufacturing company and Raytheon agreed to merge into a $100 billion all-stock deal in June last year.
The fresh stock Raytheon Industries is a solid player in the aerospace and defense industry. With around $74 billion in total profits in 2019, Raytheon Technologies has overtaken Boeing in aerospace and defense sales as 737 Max aircraft remain inoperational.
The name of United Technologies has now been changed to Raytheon Technologies Corporation, and the company's shares will immediately start trading under the ticker RTX, on the New York Stock Exchange.
The Executive Leadership Team of Raytheon Technologies consists of Executive Chairman Tom Kennedy, Chief Executive Greg Hayes, and Chief Financial Officer Toby O'Brien.
The merger of UTC, which remains with Collins Aerospace and engine producer Pratt & Whitney, and Raytheon would create a game that will have annual revenue of around $74 billion based on the turnover of the firms.
Raytheon Technology, headquartered in Waltham, Massachusetts., is one of the world's largest aerospace and defense companies with net revenues of around $74 billion in pro forma 2019 and a worldwide team of 195,000 employees including 60,000 engineers and scientists.
According to Raytheon Technologies in a statement, the joint venture aims to implement accelerated breakthrough technologies in high-value areas such as hypersonics, guided energy, avionics, and cybersecurity.
On the stock market on Friday, Raytheon Technology stocks fell 0.9 percent to 50.26. Raytheon started selling at $51 per share. At more than 866 million shares outstanding and a $74.5 billion market cap, the price is expected to change in the days, weeks, and months ahead. The company closed Thursday at $122.43 a share.
The independent business Carrier Global made its first appearance on Friday's S&P 500 and closed at 15.96. Otis Worldwide, also debuted on the S&P 500, and settled at 47.11.
In the midst of the stock-market backlash from the latest coronavirus pandemic, Raytheon saw a bigger drop than other pure-play companies, presumably due to the expanded commercial market exposure that came with the merger. It may be short-lived though, Capital Alpha Partners' Byron Callan said.
Raytheon will conduct an investor call to discuss the new consolidation's first-quarter results on May 7, 2020. Information will be provided before the announcement of the results and will be webcast on Raytheon's official investor relations website.
