United Technologies Corp. (UTX) recently received a contract worth $1 billion from the U.S. Department of Defense to manufacture engines for Lockheed Martin Corporation’s (LMT) F-35 fighter jets. The contract was awarded to the Military Engines subsidiary of Pratt & Whitney – one of the business segments of United Technologies.
The contract entails Pratt & Whitney to produce engines for 32 F-35 fighter jets and 3 spares. These fighter jets are manufactured by aerospace giant Lockheed Martin and are presently deployed in the U.S. Marine Corps, Air Force, and Navy. In addition to regular maintenance services, Pratt & Whitney also provides fleet and material management, engineering services, and technical data updates to the U.S. Department of Defense.
Pratt & Whitney is among the world’s leading suppliers of aircraft engines for the commercial, military, business jet and general aviation markets. Pratt & Whitney’s Global Services provides maintenance, repair and overhaul services, including the sale of spare parts, as well as fleet management services for large commercial engines. Till date, Pratt & Whitney has delivered 98 production engines for F-35 fighter jets.
Based in Hartford, Conn, 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 companies in the industry that are worth mentioning include ITT Corporation (ITT) and Compass Diversified Holdings (CODI), both carrying a Zacks Rank #2 (Buy).
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