Pratt & Whitney Pens $10B in Deals - Analyst Blog

Pratt & Whitney, one of the operating segments of diversified business conglomerate United Technologies Corp . ( UTX ) has signed long-term agreements worth $10 billion over the past year with 90 suppliers across the globe.

The agreements are a strategic fit as the company is preparing for a major increase in commercial and military production on a global scale. These include key parts for the company's PurePower engine family, auxiliary power units, Pratt & Whitney Canada engines as well as the F135 military engine from suppliers, which will help revitalize the company's business of providing engines to commercial jets and other ancillary products and services.

The strategic deals will enable the suppliers to invest in their businesses in order to cater to the company's highest quality and cost standards. The agreements assure Pratt & Whitney of premium quality product supplies at best value for its engine components and will provide secure sources of valuable parts in the forthcoming years.

Along with the agreements with suppliers, Pratt & Whitney aims to increase its own manufacturing capacity and invest in smart technologies, introduce new capabilities and improve efficiency in factories and at the same time deliver quality products to its customers. These investments are part of the company's strategy to focus on technological improvements and facility expansions.

Pratt & Whitney is among the world's leading suppliers of aircraft engines for the commercial, military, business jet and general aviation markets. Pratt & Whitney's Global Services provides maintenance, repair and overhaul services, including the sale of spare parts, as well as fleet management services for large commercial engine.

Based in Hartford, CT, the parent company United Technologies provides high-end technology products and services to the building systems and aerospace industries worldwide. The company serves various end markets such as aerospace, defense and commercial construction. The business diversification allows the company to remain profitable amid tough economic times.

United Technologies currently has a Zacks Rank #3 (Hold). Other stocks that look promising and are worth a look now include CLARCOR Inc ( CLC ), Icahn Enterprises, L.P. ( IEP ) and Noble Group Ltd. ( NOBGY ), each carrying a Zacks Rank #1 (Strong Buy).

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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.

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

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