UTC Aerospace Wins Embraer Contract

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UTC Aerospace Systems, a division of United Technologies Corp. (UTX), has been selected by Embraer SA (ERJ) to provide wheel and carbon brakes for its fleet of second-generation E-Jet aircrafts. The Wheels & Brakes business of UTC Aerospace Systems, located in Troy, Ohio, will supply the equipments for the aircrafts.

UTC Aerospace Systems will use proprietary DURACARB carbon heat sink material for the E-Jet carbon brakes. The strategic partnership should foster superior customer focus and extended brake life for the new E-Jet fleet, with a 35% brake life advantage over other competitive products available, thereby generating significant cost savings.

Additionally, UTC Aerospace Systems will also supply the electric system for the E-Jets, including electric power generation, emergency power generation, primary power distribution and secondary power distribution facilities. The new power system has major upgrades compared to the first generation, with the latest drive generator technology and 50% more power. The new power system will provide Embraer with innovative technologies, high performance and additional flexibility to support E-Jet aircrafts.

Management is highly encouraged by its business relationships with Embraer. With the prevailing competitive environment in the aviation industry, UTC Aerospace Systems aims to address customer needs and build long-term relationships with clients to generate a steady demand.

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.

However, the company needs to be wary of its competitors, which include formidable names such as Macquarie Infrastructure Company LLC (MIC). United Technologies currently has a Zacks Rank #3 (Hold). One of its competitors, Tyco International Ltd (TYC) carries a Zacks Rank #2 (Buy).

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