Industrial goods manufacturer A. M. Castle & Co. (CAS) recently inked a long-term agreement with diversified business conglomerate United Technologies Corp. (UTX) to become its preferred supplier of raw materials and value added services. The deal raised investor confidence as A. M. Castle share prices were up 1.3% on Jun 13 to $11.69, following the announcement.
A. M. Castle will supply processed and machined parts and offer value-added services and supply chain solutions for the Aerospace, Oil & Gas and Industrial markets. Over the years, it has developed a strong business relationship with United Technologies, maintaining high standards for its services. Leveraging on this excellence, A. M. Castle was able to secure the long-term agreement for being the preferred supplier of United Technologies.
On the other hand, by strengthening its strategic ties, United Technologies was able to ensure long-term commitments from global suppliers of repute like A.M. Castle to fuel its growth momentum.
Based in Hartford, CT, United Technologies provides high-end technology products and services to the building systems and aerospace industries worldwide. The company is a diversified business conglomerate serving various end markets such as aerospace, defense and commercial construction. The business diversification allows the company to remain profitable amid tough economic times.
The operations of the company are primarily classified into two principal businesses: commercial and aerospace. Under its commercial business, the company has Otis and the UTC Climate, Controls & Security division, which combined the former Carrier and UTC Fire & Security divisions. The aerospace business of the company consists of Sikorsky aircraft and the UTC Propulsion & Aerospace Systems, which includes UTC Aerospace Systems and Pratt & Whitney divisions.
United Technologies presently has a Zacks Rank #3 (Hold). Other notable companies in the industry include ITT Corporation (ITT) and Carlisle Companies Incorporated (CSL), both carrying a Zacks Rank #2 (Buy).