) received a contract to supply the fuel tank inerting system for
the new Bombardier Learjet 85 business jet. With this contract, the
company will also clear the way for the regulatory process to
achieve Federal Aviation Administration ("FAA") inerting system
certification for the Learjet 85 program.
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The Learjet 85 is the latest Learjet development program by
aircraft manufacturer Bombardier Aerospace, a division of
Bombardier Inc. The fuel tank inerting system will improve the
safety of the aircraft by injecting inert gas into fuel tanks while
significantly reducing the potential for ignition sources.
The contract reflects Eaton's continued growth as a leading
fuel-inerting system supplier for the aerospace industry. Since
2008, the company's top line Learjet 85 program content has been
twined, which reflects Eaton's global strength in power management
and the continued development of fuel-inerting technologies that
help to improve aircraft safety.
In the aerospace industry, Eaton is a leading supplier of
hydraulic, electro-hydraulic pump and generator products and
integrated systems, engine and airframe fuel pumps, electric
motors, fluid, fuel and air delivery products and systems,
integrated control systems; cockpit controls and displays; power
and load management systems. Eaton serves commercial and military
aviation, aerospace, military weapons, marine and off-road markets
worldwide. Recently, the company had also received a contract from
Embraer to supply hydraulic components for the KC-390
next-generation military transport aircraft.
Eaton operates in a number of markets and faces a wide array of
competitors in varied niches. The company has grown through
strategic acquisitions and joint ventures, which either complement
or expand its businesses. The strong momentum across Eaton's
business segments will likely continue amidst buoyant end-market
demand and market share gains.
However, we remain concerned due to the uncertainty prevailing in
the European markets and slower-than-expected growth in the Chinese
markets. Currently, the company retains a short-term Zacks #3 Rank
(Hold) that corresponds with our long-term Neutral recommendation
on the stock.
The company mainly competes with
Parker Hannifin Corporation