Shares of United Technologies Corp. (UTX) gained marginally on Oct 3, after one of its operating segments Pratt & Whitney signed agreements worth $16 billion with 135 suppliers across the globe on the previous day.
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, as well as the F135 military engine from suppliers, which will help revitalize its business of providing engines to commercial jets and other ancillary products and services.
The agreements, which are penned with key product suppliers from around the world, will help Pratt & Whitney increase capacity with the highest performance and ethical standards. It is likely to prepare the company to more than double its engine production over the next decade.
The strategic deals will enable the suppliers to invest in their own businesses in order to cater to the company's highest quality and cost standards. The deals 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.
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 provide 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 in the industry include Carlisle Companies Inc. (CSL), CLARCOR Inc. (CLC) and General Electric Co. (GE), each having a Zacks Rank #2 (Buy).
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