Shares of Japan Jet-Engine Partners Fall After RTX Plan to Repair Pratt & Whitney Engines
By Kosaku Narioka
Shares of Japanese jet-engine partners fell sharply Tuesday after RTX said it will cost up to $7 billion to repair Pratt & Whitney engines and compensate airlines for fixes.
IHI shares were recently down 15%, Kawasaki Heavy Industries was 6.0% lower and Mitsubishi Heavy Industries shed 4.7%.
Contamination in the metal used to make some parts in Pratt & Whitney's geared turbofan engine could cause cracks to form, RTX has said. The three Japanese companies have stakes in Pratt & Whitney's geared turbofan engine program.
RTX said Monday that it will remove about 600 to 700 Pratt engines for inspection over the next three years. The aerospace and defense company also said its profit will take up to a $3.5 billion hit from the recall over the next several years.
Write to Kosaku Narioka at kosaku.narioka@wsj.com
(END) Dow Jones Newswires
September 12, 2023 01:26 ET (05:26 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.-
What History Tells Us About the Fed’s Next Move
-
What’s Happening In the Markets This Week
-
Alphabet’s New Dividend: What Investors Need to Know
-
Going Into Earnings, Is Palantir Stock a Buy, a Sell, or Fairly Valued?
-
Going Into Earnings, Is Eli Lilly Stock a Buy, a Sell, or Fairly Valued?
-
What’s the Difference Between the CPI and PCE Indexes?
-
5 Stocks to Buy That We Still Like After They’ve Run Up
-
Markets Brief: Stocks Are Starting to Look Cheap Again
-
AbbVie Earnings: Next-Generation Immunology Drugs Help Offset Humira Biosimilar Pressure
-
Exxon Earnings: Ignore Earnings Shortfall as Long-Term Growth and Improvement on Track
-
American Airlines Earnings: We See Costs Overshadowing Market Share This Year
-
Snap Earnings: Advertising Growth and Snapchat+ Drive Monetization
-
STMicro Earnings: We Still See an Attractive Margin of Safety Despite a Poor First-Half Forecast
-
Alphabet Shares Surge on Strong Earnings, Dividend Surprise
-
Microsoft Earnings: Firm Beats Forecasts on Strong AI and Cloud Demand
-
PG&E Earnings: Near-Term Regulatory Certainty Supports Industry-Leading Earnings Growth