Shares of RTX tumbled 14% Tuesday after the aerospace giant said a manufacturing problem with some of its popular engines will require additional inspections on about 200 engines.
The problem stems from powdered metal used to make some engine parts, RTX, the parent of airplane engine maker Pratt & Whitney, said during a quarterly earnings call. RTX trimmed its cash-flow outlook for the year by $500 million to $4.3 billion due to the problem.
Pratt & Whitney said that it also expects about 1,000 more engines will have to be removed from airline fleets over the next nine to 12 months.
“The FAA is aware of the issue and is in contact with Pratt & Whitney and the affected U.S. operators,” the agency said in a statement. “The agency will ensure that the appropriate steps are taken.”