By Nilanjana Basu and Mike Stone

Raytheon Technologies, a defense and aerospace company (NYSE:) Corp, lowered its revenue projection for the full year on Tuesday. It blamed the decline in sales to Russia caused by Western sanctions imposed during the conflict in Ukraine.

Pre-market trading saw shares in the U.S. firm fall 1.7% to $98.00

After Russia’s invasion and subsequent introduction of Western sanctions, a number of U.S.-based companies have cut all ties with Russia. The impact on the aviation industry has been severe.

Raytheon’s Chief Financial Officer Neil Mitchill stated to Reuters that the reduction in 2022 revenue guidance of $750m was strictly due to indirect and direct sales, which are not allowed by Russia because of global sanctions.

Raytheon anticipates that full year revenue will be $67.75 to $68.75 trillion, which is lower than its earlier forecast of $68.5 to $69.5 billion.

About three quarters of that lost $750 million revenue was direct sales of commercial equipment to Russia, Mitchill said, and the remainder was engine parts that would have been sold principally by Pratt & Whitney Canada.

Greg Hayes, chief executive of Raytheon, told analysts during a conference call following earnings that Raytheon has sold its shares in a Russian-based joint venture heat exchanger for Boeing (NYSE.) Co and Embraer SA (NYSE: ) As Russia’s Invasion of Ukraine took place.

But, revenue rose by 3.3% to $15.72Billion during the quarter. This was due to an increase in air travel demand that boosted its sales of aerospace products.

Raytheon reported a net loss of $1.08billion, or 72c per share in its March 31 quarter, compared to $753m, or 50c per share last year.

After being hit hard by the pandemic, commercial aerospace sales rebounded on an increase in demand.

Compared to the same quarter a year ago, Collins Aerospace which makes jet parts saw sales rise 10%, and Pratt & Whitney which makes jet engines saw sales jump 12% despite slower military engine sales.

Sales at Raytheon’s defense-related businesses, Missiles & Defense, dropped 7% compared to the same quarter a year ago, and Raytheon Intelligence & Space saw sales fall 5% after the Global Training and Services business was sold to Vertex (NASDAQ:) Aerospace.

Hayes claimed that there would be no financial benefits from the Ukraine-linked arms orders for 2022. He said that Stinger and Javelin rocket production could increase in 2022. However, larger replenishments will be made in 2023 and 2024.

According to Refinitiv data, Raytheon earned $1.15 per share adjusted earnings in the third quarter compared with Wall Street analysts’ forecast of $1.02 according to their estimates. According to Refinitiv data, revenue was $15.72 Billion with analysts expecting $15.8 Billion.

To clarify that Raytheon was not JV partner but had Embraer, Boeing and Boeing customers in this story, “with” is now “for”.