Airbus has announced that its A320neo, powered by Pratt & Whitney PurePower® engines, has received joint Type Certification from the Federal Aviation Administration (FAA) and from the European Aviation Safety Agency (EASA).
"Today's announcement marks a significant milestone for the Airbus and Pratt & Whitney team," said Greg Gernhardt, president, Pratt & Whitney Commercial Engines. "We initiated our partnership on the A320neo in December 2010 with the goal of helping our mutual airline customers continuously improve aircraft performance and operating economics. Pratt & Whitney is proud that the PurePower engine is the launch engine on the A320neo and will contribute to more than 16 percent fuel burn savings when airlines enter into service. We continue to work closely together to support aircraft deliveries to customers as they embark on a new age in aviation."
Airbus announced Pratt & Whitney's award-winning PurePower Geared Turbofan™ engine as an engine option for its A320neo family on Dec. 1, 2010. Five years later, the Geared Turbofan engine's ground-breaking technology will meet or exceed commitments on fuel burn, noise and emissions at customer delivery. The three A320neo flight test aircraft with Pratt & Whitney PW1100G-JM engines successfully accumulated over 1,070 flight hours in some 350 flights. The PurePower engine family has accumulated more than 26,000 hours of testing, including 42,000 cycles, on more than 80 test engines.
W2B,....."The dollar is strong and China is slowing. You shouldn't be in this stock".......OK, what stocks are you recommending?.........Kid
W2B..."The dollar is strong and China is slowing. You shouldn't be in this stock."....I think that you are suffering from chronic whine. China is approximately 5% of UTC revenues, so, not that big a deal. Strong dollar will raise interest rates. So, you may get 3.6% instead of 3.55% in the "fixed income" fund. So, why are you whining?........Kid
flyer,......"there is no more complex product on the planet than an aircraft engine."......If you watched a documentary on Lufthansa's inaugural flight of the A-380 from Frankfurt to Los Angeles, you may change your mind. The A-380 is extremely complex, there is triple redundancy on the flight control computers, it takes almost one year to make the Goodrich landing gear. The jet engine is well understood and actually has few moving parts, a low rotor and a high rotor. Most engine improvements have been incremental due to advances in metallurgy, cooling techniques, etc. I'm not saying that the A-380 is the "most complex product on the planet", there are many, many others......Kid
Finally, if UTC reduces its share count by close to 20% it could then raise the dividend by 20% at the same cost level.".......This assumes that income remains the same, UTC has telegraphed that income has and will decline near term. Certainly, the income from Sikorsky is gone.
"UTC will take a hit over the next few years because of the "negative margin" on Pratt's new engine.".....Pratt is making strong earnings contributions to UTX, so, the "negative margin" has been absorbed. The investment in the GTF is a wise one, otherwise, Pratt would go the way of Eastman Kodak.
"A much more important issue is technical: How bad will start-up problems be and how good an engine will the GTF turn out to be"........You're assuming that there will be problems with the GTF. After a $10.B investment and 20 years of development, there better not be any "bad problems". We made all the wrong mistakes,.....Yogi Berra
flyer,.....With the sale of Sikorsky, UTC revenue and earnings should fall by the same amount as Sikorsky's contribution to the financials. There are probably taxable expenses due to the capital gains of the SIK sale, depreciation booked is now income as well. It appears that the UTC cash register is now a little thinner. If stock buybacks lifted earnings and dividends as you suggest, then everybody would be doing buybacks. I don't share your views on the merits of a stock buyback. But, I respect your right to be wrong......Kid
W2B,....."Back in 1950 their fair share was 91%. Why should it be less than that today?".....Surely, you can't believe that 91% tax is fair. I think that Ronald Reagan was offered a role in a movie once, but, his tax rate would be 95%, he declined, he would get 5% and the government would get 95%. The top 1% now pay about 1,400 X what the lower 60% pay on every $1.of income. The top 1% aren't all that bad, some are very honest, hard working and contribute to the economy in a big way. Blowing out someone's candle wont make your candle glow brighter. Maybe you should seek asylum in Sweden ......Kid
Boeing (NYSE:BA) and Airbus (OTCPK:EADSY) engine supplier Rolls-Royce warned yet again of a grimmer profit outlook Thursday, amid strong competition from General Electric (NYSE:GE) and United Technologies' (NYSE:UTX) Pratt & Whitney.
Rolls-Royce said full-year profit in 2015 would be at the lower end of guidance and that 2016 profit headwinds would worsen, reflecting "sharply weaker demand."
The company expects "sharply lower volumes" of corporate jets powered by Rolls-Royce engines next year, adding that its aftermarket-service segment had begun to suffer as customers use older, wide-body engines less and shift to more fuel-efficient planes.
Shares of Rolls-Royce plunged nearly 20% in London. General Electric shares closed down 1.7% in the stock market today. United Technologies finished up 1%, helped by an accelerated buyback plan. Boeing fell 1.7%, while Airbus dropped 3.8%.
Rolls-Royce's gloomier outlook also comes as engines made by GE and Pratt & Whitney for the Airbus A330 have driven down prices for its Trent 700 engines, according to the Financial Times.
Meanwhile, this week's Dubai Airshow also has seen fewer orders compared with the previous biennial event, when Middle East airlines flooded the market with large orders.
Among this year's bigger deals is a $16 billion contract that Dubai's Emirates airline awarded GE Aviation for the maintenance of engines on its fleet of Boeing 777s.
In its third quarter, United Technologies said commercial aerospace aftermarket sales rose 8% at its Pratt & Whitney subsidiary. Revenue in rival General Electric's aviation division rose 5% in the most recent reported quarter, with profit up 7%.
But Rolls-Royce's woes don't stop at aviation. Its marine engine segment "continued to deteriorate" this year, the company added, darkening its outlook for next year. Lower oil prices have damaged the offshore oil market in general.
Thursday's profit warning follows one issued in July and others since last year amid plans to lay off scores of workers. The company said profit headwinds for 2016 would rise to roughly 650 million pounds, or $989 million.
The company also said its shareholder payment policy would be reviewed, foreshadowing a potential dividend cut.
"The speed and magnitude of change in some of our markets, which have historically performed well, has been significant and shows how sensitive parts of our business are to market conditions in the short term," Rolls-Royce CEO Warren East said in a statement that also detailed early findings of an internal company review, adding, "One of the fundamental findings of my operating review is that, as a business, we carry too much fixed cost and are inflexible in managing this in response to changes in market conditions."
The company said it would begin a restructuring effort from 2016 that would "streamline senior management" and seek incremental gross-cost yearly savings of 150 million-200 million pounds from 2017.
Rolls-Royce once the pride of British engineering, has turned into a financial embarrassment. Profit warnings have become a regular feature of corporate life for the purveyor of aero and marine engines. There was more bad news on Thursday. Full-year profit will be at the lower end of previous guidance of £1.3bn-£1.5bn. “Sharply weaker demand” will wipe a bigger than expected £650m off next year’s profit, against earlier guidance of £300m. The dividend is up for review. The shares fell a fifth. Warren East, chief executive, who has been in his position since July, needs to break the pattern.
United Technologies Corp. has entered into accelerated share-buyback agreements with two banks to repurchase $6 billion of the company’s common stock, according to a Securities and Exchange Commission filing Thursday.
The buyback is part of the company’s $10 billion share repurchase for the year.
The maker of Pratt & Whitney jet engines, Otis elevators and Carrier air-conditioning equipment said Deutsche Bank AG and J.P. Morgan Chase & Co. will each deliver $3 billion worth of stock under the program.
Last month, United Technologies UTX, -0.43% said it would increase its repurchase plan by $12 billion, aiming to buy back $16 billion worth of stock through 2017. The company has already stepped up repurchases by buying back $4 billion of stock this year, more than it did all of last year, and now aims to have bought back $10 billion by year-end. The buybacks take advantage of “a big disconnect” between the company’s value and its share price, Chief Executive Greg Hayes said last month.
The amped-up buyback plan comes as the company navigates troubles in China, a stagnant Europe and the cost of new engine production.
NAGOYA, Japan, Nov. 11, 2015 /PRNewswire/ -- Pratt & Whitney's PurePower engines have successfully powered the Mitsubishi Regional Jet (MRJ) in its first flight. Mitsubishi was the first airframer to select the PurePower Geared Turbofan™ engine. Pratt & Whitney is a United Technologies Corp. (UTX) company.
"The Mitsubishi Regional Jet has made our country proud and the Pratt & Whitney propulsion technology used on this world-class aircraft has made today possible," said Hiromichi Morimoto, president, Mitsubishi Aircraft Corporation. "The Mitsubishi team, in close coordination with the Pratt & Whitney team, has made the MRJ's first flight a great success."
"Eight years ago, Mitsubishi believed in the ingenuity of our newest technology – the PurePower engine – and we are proud to make their stunning aircraft fly today," said Greg Gernhardt, president, Pratt & Whitney Commercial Engines. "Over the course of our history, Mitsubishi and Pratt & Whitney have worked to innovate and create new technologies that advance the passenger travel industry. What we have accomplished together is truly impressive and we look forward to continuing on this path forward."
With more than 23,000 hours of testing and perfecting, including 40,000 cycles, the PurePower engine continues to prove its capabilities in the skies. Now, Pratt & Whitney has three PurePower engines powering the next-generation of aircraft.
The PurePower Geared Turbofan engine family has about 7,000 orders, including options, with more than 70 customers from more than 30 countries.
flyer,.. I can relate to your rationale. At some in the past, I felt that if a company produced something that you could put into a box and export, that was a good company. That would also be good for the US balance of payments and the US economy. You can't put Facebook in a box and export it. But, there are more Facebook users in one day than the population of China. Facebook has found a way to monetize the use of Facebook and is increasing revenues and earnings, which is what I like in a company. I have some FB which I bought for $32.13 in July 2012. FB is now $107.12, I like that. I don't use Facebook.........Kid
flyer,..... "BRK doesn't really do/make anything".....Berkshire-Hathaway has 316,000 employees, UTC has 211,000 employees. Surely Berkshire-Hathaway must "do / make" something. If "do / make" something was a requirement for my investing, I may not have bought FB and GOOG. Fortunately, I did buy FB and GOOG and made lots of money the past few years. Sometimes having a little flexibility can be rewarding, looking for that last 1/4 of 1% TSFC improvement may not have application in today's 'world.......Kid
NEW YORK (Reuters) - Warren Buffett's Berkshire Hathaway Inc (BRKa.N) (BRKb.N) said quarterly profit doubled to a record high, reflecting a large gain on its stake in Kraft Heinz Co (KHC.O), while operating profit declined on weaker results from insurance underwriting.
Third-quarter net income rose to $9.43 billion, or $5,737 per Class A share, from $4.62 billion, or $2,811, a year earlier.
Operating profit fell 4 percent to $4.55 billion, or $2,769 per share, from $4.72 billion, or $2,876.
Analysts on average expected operating profit of $2,720.60 per share, according to Thomson Reuters I/B/E/S.
Among Berkshire's larger businesses, profit fell 34 percent from insurance underwriting to $414 million, rose 12 percent at the BNSF railroad to $1.16 billion, and rose 13 percent to $786 million at Berkshire Hathaway Energy.
"Overall, quite decent operating earnings," said Jeff Matthews, a principal at the Ram Partners LP hedge fund and author of "Pilgrimage to Warren Buffett's Omaha." "Nothing wrong with that given the weakness in the industrial side of the economy."
Berkshire has close to 90 operating businesses including the General Re reinsurer, Lubrizol chemicals, NetJets business jets and Dairy Queen ice cream. Buffett, 85, has run Omaha, Nebraska-based Berkshire since 1965.
Close yesterday at $100.00 is suspicious. Maybe options are the tail that is wagging the dog. Just doesn't seem within statistical probabilities to neatly finish at $100.00. Not-so-calm, you still lurking?....Kid
Sue,.....You ignorant #$%$, Pratt is being engaged and fixing a problem. That's what they're supposed to do........:-)......Kid