UTX Accepts Dreamliner Assembly Fault - Analyst Blog


Diversified business conglomerate United Technologies Corp. ( UTX ) recently took the blame for the faulty fire-fighting systems in The Boeing Company 's ( BA ) Dreamliner jets. The assembly error was detected in three Boeing 787 jets in the fleet of Japanese airline service provider ANA Holdings.

Although the fault did not jeopardize passenger safety as aircraft usually are equipped with other fire-extinguishing systems, United Technologies was swift to take corrective measures by working in unison with Boeing and the airlines for necessary inspections. Meanwhile, ANA Holdings has decided to inspect all the Dreamliner jets for similar problems to eliminate the probability of recurrence.

For its part, United Technologies accepted that an assembly error at its service center was responsible for some faulty refurbished fire extinguisher bottles in the jets. The damage-control exercise is likely to dent a hole in the credibility of the assembly-line manufacturing units and United Technologies would certainly want to avoid any such instances in future.

Based in Hartford, CT, 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 #2 (Buy). Other notable companies in the industry include ITT Corporation ( ITT ) and Federal Signal Corp. ( FSS ), both carrying a Zacks Rank #2 (Buy).

BOEING CO (BA): Free Stock Analysis Report

FED SIGNAL CP (FSS): Free Stock Analysis Report

ITT CORP (ITT): Free Stock Analysis Report

UTD TECHS CORP (UTX): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: BA , FSS , ITT , UTX



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