UTX's Pratt & Whitney Consortium To Power A320ceo Aircraft

Two leading airline operators in the People's Republic of China, namely Air China Limited and Shenzhen Airlines, recently selected the V2500 engine to power their Airbus A320ceo family aircraft for superior performances. The engines are developed by IAE International Aero Engines AG, a multinational aero engine consortium that includes Pratt & Whitney, one of the operating segments of diversified conglomerate United Technologies Corporation (NYSE:UTX) , Pratt & Whitney Aero Engines International GmbH, Japanese Aero Engines Corporation, and MTU Aero Engines GmbH.

While Air China has placed an order to power its 18 firm Airbus A320ceo family aircraft, Shenzhen Airlines will use the engines to power 13 similar aircraft. About 4,320 of the A320ceo model have reportedly been delivered, with 367 remaining on order as of 30 Sep, 2016.

The V2500 engines offer the most advanced technologies in the 22,000 to 33,000 pound thrust range with lowest overall emissions in its class and have emerged as the engine of choice for the Airbus A320 family. The engines provide significant performance and economic benefits, including lowest fuel burn. The engine also provides ease of maintenance, including comprehensive engine monitoring, fully electronic aircraft-to-engine interface, and cockpit-based maintenance.

The twin deals are expected to boost the revenues of Pratt & Whitney. It is among the world’s leading suppliers of aircraft engines to the commercial, military, business jet and general aviation markets. Its Global Services provide maintenance, repair and overhaul services, including the sale of spare parts and fleet management services for large commercial engines.

UTD TECHS CORP Price

UTD TECHS CORP Price | UTD TECHS CORP Quote

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 presently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include Danaher Corp. (NYSE:DHR) , Raven Industries Inc. (NASDAQ:RAVN) and Macquarie Infrastructure Corporation (NYSE:MIC) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Danaher has a long-term earnings growth expectation of 11.7% and is currently trading at a forward P/E of 21.5x.

Raven has a long-term earnings growth expectation of 10% and is currently trading at a forward P/E of 42.0x.

Macquarie is currently trading at a forward P/E of 70.8x.

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