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U.S. defense contractor Raytheon reported an increase in revenue in the second quarter, boosted by the recovery of its commercial airline customers, but sales at its missile division were hit by supply chain issues.

“A strong start to the summer travel season resulted in continued revenue growth” that “exceeded our expectations,” said chief executive Greg Hayes.

“Looking ahead, as we expect the global supply chain environment, labor availability and inflation to remain challenging in the near term, we are actively engaging with our customers and our suppliers to meet demand,” he added.

Raytheon, one of the Pentagon’s top five contractors, posted second-quarter revenue of $16.3 billion, up 3% year-over-year. Net income was $1.3 billion, up 25% from the same period in 2021, resulting in earnings of 88 cents per share, missing analysts’ estimates of 92 cents, according to Refinitiv.

Sales at Pratt & Whitney and Collins Aerospace, which make commercial jet engines and other jet aircraft parts, respectively, rose 16% and 10% to $5 billion each, as demand for spare parts and spare parts increased.

But Raytheon Missiles & Defense, home to the Stinger missile program and jointly produces the Javelin missile with Lockheed Martin, saw an 11% drop in year-on-year sales to $3.6 billion. The company attributed the drop to “continuing supply chain constraints and expected declines in some ground warfare and air defense programs.”

Darts and javelins were essential weapons for Ukrainian forces fighting the Russian invasion. During the quarter, the United States placed its first order for Stingers in two decades, awarding Raytheon a $662 million contract for 1,300 missiles, as the Pentagon moved to replenish its stockpile.

Raytheon and other major defense contractors are bracing for a surge in demand as Western governments plan to increase demand-side spending after the outbreak of war in Ukraine.

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