United Technologies Corp.
), a diversified conglomerate, has reiterated its outlook for
2013 despite several positive developments and new contracts in
its kitty. The company presently expects earnings to be in the
range of $5.85 to $6.15 per share on sales of $64 billion to $65
billion. The current Zacks Consensus Estimates for 2013 earnings
and revenue are pegged at $6.04 and $65 billion, respectively.
Pratt & Whitney, a division of United Technologies, recently
won a 5-year Performance Based Logistics (PBL) contract worth
$300 million from the Republic of Korea relating to the F100
engines that power its Air Force fleet of Lockheed Martin F-16
fighters and Boeing F-15K fighters. According to the terms of the
agreement, Pratt & Whitney will provide the requisite support
for about 230 engines in the intermediate engine shops and at the
), a leading aerospace company, selected the PurePower Geared
Turbofan engine manufactured by Pratt & Whitney to power its
new second generation E-Jet aircraft family. The engine uses an
advanced gear system and a superior core that facilitates
superior performance with reduced fuel consumption, low emission
levels, and lesser noise. Consequently, Embraer expects these
engines to curtail its operating costs as well as meet its
environmental improvement targets once the E-jets become
operational in 2018.
United Technologies is also reportedly set to win a huge contract
worth $6.8 billion for 112 rescue helicopters from the U.S. Air
Force, as most of its competitors have missed the deadline to
submit the requisite bids. The multi-billion deal will likely
provide a much-needed boost to the Sikorsky helicopter segment of
the company. United Technologies do not envisage any material
impact on its 2013 outlook from the Embraer deal.
Based in Hartford, Connecticut, United Technologies is a
diversified company that provides a broad range of
high-technology products and services to the global aerospace and
building systems industries. The company also operates a central
research organization that pursues technologies for improving the
performance, energy efficiency and cost of its products and
United Technologies currently has a Zacks Rank #3 (Hold). We have
a long-term Neutral recommendation on the stock.
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