UTX's Pratt & Whitney PurePower Embraer Engine Gets FAA Nod
Pratt & Whitney, an operating segment of diversified conglomerate United Technologies Corporation UTX, recently announced that its PurePower Geared Turbofan PW1900G engine received certification from Federal Aviation Administration (FAA). The engines will power the two largest aircraft in Embraer S.A. ERJ second generation commercial aircraft family.
The PurePower engine family has proven its mettle in the industry. It has a state-of-the-art gear system, which separates the engine fan from compressor and turbine, thereby facilitating an optimum operating speed for each of the modules. While the fan rotates slower, the low-pressure compressor and turbine operate at a high speed, increasing engine efficiency and delivering significantly lower fuel consumption, lesser noise and lower emissions along with reduced maintenance costs.
The PurePower Geared Turbofan engine has been able to meet the strict quality standards relating to burn, noise and emissions to receive the accreditation. The PurePower GTF engine has the ability to reduce engine fuel consumption by 16%, regulating emissions and noise footprint by 50% and 75%, respectively. The engine is reportedly being used by 80 different customers across the globe. The coveted accreditation by FAA and continued product improvements have enabled its parent firm, United Technologies to outperform the Zacks categorized Diversified Operations industry with an average year-to-date return of 10.7% compared with a paltry 1.2% gain for the latter.
The technologically superior products also create a competitive advantage for Pratt & Whitney and ensure a steady stream of revenues for United Technologies. Pratt & Whitney is among the world’s leading suppliers of aircraft engines to the commercial, military, business jet and general aviation markets. Its Global Services provide maintenance, repair and overhaul services, including the sale of spare parts and fleet management services for large commercial engines.
Based in Hartford, CT, United Technologies provides high-end technology products and services to the building systems and aerospace industries worldwide. The company serves various end markets such as aerospace, defense and commercial construction. The business diversification allows the company to remain profitable amid tough economic times.
United Technologies presently has a Zacks Rank #2 (Buy). A couple of other stocks worth considering in the industry include 3M Company MMM and Crane Co. CR, both carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
3M has a long-term earnings growth expectation of 9.7%. It topped estimates thrice in the trailing four quarters with an average positive earnings surprise of 1.3%.
Crane has long-term earnings growth expectation of 10.1%. It surpassed estimates in each of the trailing four quarters with an average positive earnings surprise of 8.4%.
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