Sep. 3, 2014, 10:58 AM
- Following an earlier report which stated Pratt & Whitney (UTX -0.1%) will begin testing a design change on the engine of Lockheed Martin's (LMT -0.1%) F-35, Pentagon chief arms buyer Frank Kendall has now announced that the cost of the fix will be minimal.
- "I am getting, over time, more confident that we've got our arms around that problem and are solving it," says Kendall. "I don’t think it’s going to be a huge cost. I think it's a relatively minor cost."
Sep. 3, 2014, 8:03 AM
- Pratt & Whitney (NYSE:UTX) will begin testing a design change this week to fix the issue which caused a massive engine failure aboard a Lockheed Martin (NYSE:LMT) F-35 fighter jet in June.
- The failure caused the engine to break apart and catch fire, resulting in the grounding of the entire F-35 fleet for several weeks. Flights have recently resumed, although certain restrictions still apply.
- Following Friday's temporary suspension on delivery of engines due to questions over titanium origins, Pratt has now sued its titanium supplier A&P Alloys for fraud and breach of contract.
Aug. 29, 2014, 6:15 PM
- United Technologies' (NYSE:UTX) Pratt & Whitney unit says it suspended delivery of engines for the F-35 jet, the Pentagon’s costliest weapons program, over concern that a supplier may have provided “suspect” titanium.
- UTX says delivery was halted in May after an in-house inspection and testing process raised questions about the origin of the titanium; UTX replaced all suspect engine parts in its inventory for failing to meet specifications, but determined the titanium in 147 F-35 engines already delivered did not pose a flight safety risk.
- The Pratt & Whitney engine accounts for $68.4B of the $398.6B projected cost of the F-35 being built by Lockheed Martin (NYSE:LMT).
Aug. 27, 2014, 9:26 AM| Comment!
Aug. 14, 2014, 6:58 AM
- United Technologies (NYSE:UTX) is recalling ESL and Interlogix smoke detectors that were sold from March 2013 to February 2014.
- A malfunction may allow radio frequency interference to cause the detectors to fail to alert users of a fire.
- The recall affects approximately 141K models in the U.S. and 13K in Canada.
Aug. 14, 2014, 4:27 AM
- Restrictions on Lockheed Martin (NYSE:LMT) F-35 fighter jets have again been reduced, allowing the 20+ test planes in the U.S. fleet to fly six hours between engine inspections instead of three.
- The jets were grounded for three weeks after a June 23 engine failure, and have since been imposed with flight limitations.
- Contract talks between prime contractor Lockheed, and enginemaker Pratt & Whitney (NYSE:UTX) are said to be now progressing for the next batch of aircraft and engines.
Aug. 12, 2014, 3:44 PM
- The U.S. Army selects Textron's (TXT -0.3%) Bell Helicopter unit and a team of Boeing (BA -0.2%) and United Technologies' (UTX -0.7%) Sikorsky Aircraft to develop the next phase of a helicopter replacement program the Pentagon forecasts could be worth as much as $100B.
- TXT and the Boeing-Sikorsky team were chosen from among four bidders vying to build a demonstrator for the Army's planned Joint Multi-Role helicopter, which would replace Boeing's Apaches and Sikorsky's Black Hawks.
- While the program will not generate significant revenues for several years, investors are watching the test phase as manufacturers position themselves with new technology aimed at making military helicopters fly faster and longer.
Aug. 7, 2014, 5:49 PM
- Boeing (NYSE:BA) and United Technologies (NYSE:UTX) have been stockpiling titanium parts in case rising economic tensions disrupt supplies from the Russian producer the two U.S. companies rely on for the metal that is critical to building jetliners, WSJ reports.
- The aerospace giants, as well as Europe's Airbus (OTCPK:EADSF, OTCPK:EADSY), buy a substantial share of their titanium from VSMPO, the world's largest titanium producer; VSMPO also supplies ~35% of the titanium Boeing uses for commercial jetliners, with U.S. companies Allegheny Technologies (NYSE:ATI), RTI International Metals (NYSE:RTI) and Precision Castparts (NYSE:PCP) unit Titanium Metals supplying the rest.
- BA and UTX are said to have been stockpiling as much as six extra months' supply of highly customized titanium forgings.
Aug. 4, 2014, 10:14 AM
- Under a new Comprehensive Accessory Repair and Exchange (C.A.R.E.) program, Singapore Airlines' (OTCPK:SINGY) subsidiary, Scoot Pte., has selected United Tech (UTX +0.2%) unit UTC Aerospace Systems to provide repair services for components on its Boeing 787 aircraft.
- UTC Aerospace Systems has had C.A.R.E. programs in place with Singapore Airlines to support the airline's Boeing 777 and Airbus A380 fleet since 2008.
Aug. 4, 2014, 8:26 AM
- Boeing (NYSE:BA) has chosen United Tech (NYSE:UTX) unit UTC Aerospace Systems' Aerostructures business to build nacelle systems for its 787-10 Dreamliner.
- "After being part of the Boeing 787 Dreamliner journey from concept to production for the past ten years, we're gratified Boeing has selected us to continue the next leg with them," says Aerostructures President Marc Duvall.
- The Aerostructures business was awarded the contract to provide inlets, thrust reversers, fan cowls and exhaust systems for both the GE and Rolls-Royce engine options on the 787-8 and 787-9 in 2004 and will now include the 787-10 Dreamliner.
Jul. 23, 2014, 9:54 AM
- Shares of United Technologies' (UTX -0.4%) slipped lower after Wells Fargo downgraded stock's rating to Market Perform from Outperform stating an overly-optimistic earnings outlook.
- Despite being at the Outperform level for the last three years, the investment firm lowered the PT on the stock to a range of $110-$115 from $128-$132.
Jul. 22, 2014, 8:25 AM
- United Technologies (NYSE:UTX) reports a Q2 net profit increase of $1.68B, up 7.7% Y/Y from $1.56B.
- Sales increased 7% Y/Y to $17.2B, while revenue climbed 7.4% to $17.19B.
- "Our focus on growth opportunities and execution in our core markets resulted in another solid quarter," says CEO Louis Chenevert. "We saw a fourth consecutive quarter of organic sales growth, along with strong margin expansion."
- The company also raised the lower end of its earnings guidance range for 2014 by $0.10 per share, citing strong results in the first half of the year. It now expects earnings of $6.75 to $6.85 per share.
- Cash flow from operations was $1.7B and capital expenditures totaled $406M.
- Q2 earnings
- UTX +0.8% premarket
Jul. 22, 2014, 7:02 AM| 1 Comment
Jul. 21, 2014, 5:30 PM
Jul. 17, 2014, 7:35 AM
- Pratt & Whitney (NYSE:UTX) has hired IBM (NYSE:IBM) to analyze massive amounts of data from approximately 4,000 commercial aircraft engines in an effort to calculate potential engine trouble before problems arise.
- "Rather than reacting to some sort of an engine event, we are leveraging data from various sources for maintenance, for planning engine diagnostic systems and building predictive models," says IBM VP Jerry Kurtz.
- Due to the new proactive maintenance program, Pratt & Whitney expects to extend engine life by over almost 50% and decrease maintenance costs by up to 20%. A typical engine repair can fetch between $3M to 10M.
Jul. 15, 2014, 6:30 PM
- The U.S. Defense Department says it will not send its advanced F-35 jet fighter to the U.K. for a long-awaited international debut because of lingering concerns about an engine fire that raised concerns about the safety of the next generation fighter jets.
- While the military cleared the F-35 for limited flights earlier today, the Pentagon says the restrictions made it impossible to fly the plane to the U.K. to take part in the Farnborough airshow now under way.
- The cancellation is a blow to the Pentagon's most expensive military program, as well as to Lockheed Martin (NYSE:LMT), which makes the F-35, and United Technologies (NYSE:UTX) unit Pratt Whitney, which makes the engines.
UTX vs. ETF Alternatives
United Technologies Corporation provides high technology products and services to the building systems and aerospace industries. Its business segments are Otis, UTC Climate, Controls & Security, Pratt & Whitney, UTC Aerospace Systems and Sikorsky.
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