United Technologies Corp
) recently divested the power system unit division of Pratt &
Whitney to Mitsubishi Heavy Industries ("MHI") for an undisclosed
amount. As per the agreement, Pratt & Whitney will offer
engineering and manufacturing services for the development of the
FT4000 Power Systems gas turbine. Additionally, in the long term,
Pratt & Whitney will provide GG8 turbines to Mitsubishi.
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Pratt & Whitney Power Systems unit primarily deals with the
engineering, assembly and sales of aero-derivative gas turbines
and provides related services to gas turbines along with
engineering, procurement and construction of power generation
systems. This business is an excellent fit for Mitsubishi as it
is mainly focused on the gas turbines business. In the last
reported quarter, revenues from Pratt & Whitney increased
11.5% year over year to $3,402 million. United Technologies has
adopted this strategic initiative to focus on its core aerospace
and commercial businesses.
Based in Hartford, Conn., United Technologies is a diversified
business conglomerate serving various end markets such as
aerospace, defense and commercial construction. The growth of the
company is driven by both organic and inorganic growth. The Pratt
& Whitney segment of United Technologies primarily supplies
aircraft engines to the commercial, military, business jet, and
general aviation markets. It also manufactures aerospace
propulsion systems for the U.S. space shuttle program.
United Technologies currently has a Zacks Rank #3 (Hold). Other
stocks that look promising and are worth a look now are
Honeywell International Inc
Macquarie Infrastructure Company LLC
) each having a Zacks Rank #2 (Buy).