Honeywell International, Inc. (HON) and Pratt & Whitney’s joint venture firm Advanced Turbine Engine Company LLC recently completed the testing of its second HPW3000 engine. Pratt & Whitney is a division of industrial goods manufacturer United Technologies Corp. (UTX). The testing was an integral part of the Army Aviation Applied Technology Directorate's (AATD) Advanced Affordable Turbine Engine (AATE) Science and Technology program.
The AATE program is intended to validate technologies needed to achieve the performance goals of the Army. HPW3000 is a turboshaft engine and is modeled as a solution for the US Army's Improved Turbine Engine Program (ITEP). The ITEP will replace engines on the Army’s Black Hawk and Apache fleets, which is likely to help them to fly higher, longer and farther than before.
The new engine offers improvements in performance, energy-efficiency and is likely to result in lower operating costs. In addition, the new engine is expected to increase the range and payload of these helicopter fleets. In comparison to other engines, it has 50% additional power with a 25%increase in fuel efficiency and a 20% increase in engine life, thereby saving $1 billion annually in government costs. Together, the expertise of both leading companies coupled with its engineering, manufacturing and production capabilities is expected to build the most advanced and fuel efficient turbine engine.
United Technologies, the parent company of Pratt & Whitney, provides high-end technology products and services to building systems and aerospace industries worldwide. This diversified business conglomerate serves various end markets such as aerospace, defense and commercial construction. The business diversification allows the company to remain profitable during tough economic times.
Honeywell is a global diversified technology and manufacturing firm with a wide range of aerospace products and services, control, sensing and security technologies for buildings, homes and industry. ATEC offer advanced engines for the U.S. Army Black Hawk and Apache helicopters.
United Technologies currently has a Zacks Rank #3 (Hold). Other stocks that look promising and are worth a look include CLARCOR Inc. (CLC) and Compass Diversified Holdings (CODI), both carrying a Zacks Rank #2 (Buy).
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