(Reuters) – Raytheon Technologies Corp expects positive free cash flow in 2020, primarily driven by its defense business, the U.S. weapons maker’s Chief Financial Officer Toby O’Brien told Reuters.
The company’s defense unit, its biggest, is expected to grow in mid-single digits this year, O’Brien said, even as growth in the commercial aerospace business declines due to the coronavirus crisis.
“Given the growth profile, the profitability that we have in defense, along with the strong historic cash flow generation, that’s going to continue into this year,” said O’Brien.
Raytheon did not provide a financial forecast for 2020 due the COVID-19 outbreak.
Analysts on average are expecting Raytheon to post free cash flow of $5.45 billion, according to IBES data from Refinitiv.
O’Brien said Raytheon’s commercial aerospace business will break even in terms of the cash flow this year, and will include $2 billion in benefits due to cost savings and $4 billion in cash conservations efforts.
(Reporting by Ankit Ajmera in Bengaluru; Editing by Supriya Kurane)