General Electric Company
United Technologies Corp.
) recently procured three Department of Defense contracts each. A
total of 37 Pentagon Defense Contracts were awarded, which had a
total value of $2.2 billion. The contracts signify a thaw in
defense budget as the government slowly eases its purse strings.
GE Aviation, an operating unit of General Electric, won a $7.5
million cost-plus-fixed-fee delivery order relating to the F404
Engine Component Improvement Program. This contract entails GE
Aviation to offer engineering and engine system improvement
support for the U.S. Navy and also for the respective governments
of Australia, Canada, Finland, South Korea, Kuwait, Malaysia,
Spain, Sweden, and Switzerland through Dec 2014.
In addition, General Electric received a $7.8 million
cost-plus-fixed-fee delivery order for the F414 engine. The
contract, scheduled to end in Dec 2014, has the U.S. Navy and the
government of Australia as its customers. CFM International, a
subsidiary of General Electric, also won an $8.5 million
firm-fixed-price contract to supply engine combustion liners to
the U.S. Air Force through Apr 2015.
On the other hand, United Technologies' Pratt & Whitney
procured a contract worth $231.5 million relating to the
F119-PW-100 engines that power
Lockheed Martin Corporation
) F-22 Raptor stealth fighter jet. Sikorsky, one of the operating
segments of United Technologies, won a $105.3 million deal to
modify eight UH-60M Black Hawk Helicopters for the Saudi Arabian
National Guard. At the same time, Sikorsky also received an $18.3
million maintenance contract for the U.S. Navy.
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.
General Electric is one of the largest and the most diversified
technology and financial services corporations in the world. With
products and services ranging from aircraft engines, power
generation, water processing, and security technology to medical
imaging, business and consumer financing, media content, and
industrial products, the company serves over 100 million
customers worldwide. Its segments include Power & Water, Oil
& Gas, Energy Management, Aviation, Healthcare,
Transportation, Home & Business Solutions, and GE Capital.
Both General Electric and United Technologies currently have a
Zacks Rank #3 (Hold). Another notable company in the industry
), which carries a Zacks Rank #2 (Buy).
GENL ELECTRIC (GE): Free Stock Analysis
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