UTX Unit, LMT to Ink Partial Deal for F35 Engines - Analyst Blog

By Zacks Equity Research,

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Pratt & Whitney, a division of United Technologies Corp ( UTX ) is expected to sign a partial deal to fund operations and maintenance of the next batch of F135 engines it is building for Lockheed Martin Corporation ( LMT ) F-35 fighter jets.

Pratt & Whitney is among the world's leading suppliers of aircraft engines for the commercial, military, business jet and general aviation markets. It is the sole supplier of F135 engines for all three variants of the F-35 fighter jet. Going forward, Pratt & Whitney is expected to cut down the cost of the F135 engines by at least 2.5%. This deal is expected to be followed by another agreement for the manufacture of new engines in 2014.

The next two batches of engines to come under production, the seventh and eighth production contracts will consist of about 40 engines each and will see the separation of the manufacturing and maintenance portions to ensure increased specialization.

Recently, Pratt & Whitney also opened a new F100 engine overhaul facility in Columbus, Ga. The new 105,000 square-feet facility enhances Pratt & Whitney's capacity to service engines that power F-16 and F-15 fighter aircrafts used by the U.S. Air Force and international military customers

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 during tough economic times.

United Technologies currently has a Zacks Rank #3 (Hold). Better ranked stocks in the industry include CLARCOR Inc ( CLC ) and Hutchison Whampoa Ltd ( HUWHY ), both carrying a Zacks Rank #2 (Buy).

CLARCOR INC (CLC): Free Stock Analysis Report


LOCKHEED MARTIN (LMT): 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 Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: CLC , HUWHY , LMT , UTX

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