United Technologies Unit Invests In GTF Engine Maintenance

Pratt & Whitney, a division of United Technologies Corp. (NYSE:UTX) , recently announced its plans to invest $65 million in its engine overhaul facility in Columbus, GA. This investment will be directed toward maintaining its PurePower Geared Turbofan (GTF) engines.

Having a strong engine maintenance, repair and overhaul network is a key requirement of the company. The GTF engine, in particular, will require a strong maintenance, repair and overhaul network.

The Columbus Engine Center

Pratt & Whitney has a long presence in Columbus, dating back 30 years; the company has provided job opportunities to a number of residents in the community. While the Columbus Engine Center’s high level maintenance expertise will provide superior quality service to the company’s GTF engine customers, the investment will create more jobs in the city in the years to come.

Located 90 miles south of Atlanta, the Columbus Engine Center is the first facility in the world to begin maintaining PW1000G engines. In addition to maintaining V2500, PW2000, F117 and F100 engines, it will also maintain the PW1100G-JM and PW1500G engines.

The center’s GTF engine facility will include a number of new services which were not available earlier. Pratt & Whitney has constantly invested in upgrading this facility over the past several years. The company will commence the construction of this test facility adjacent to the existing test cell.

Headquartered in East Hartford, CT, Pratt & Whitney is among the world’s leading suppliers of aircraft engines for the commercial, military, business jet and general aviation markets.

Brexit Impact on Business

Per Gregory J. Hayes, President and CEO of United Technologies, the company has 8,000 employees in the UK, and sees no “near-term” headwinds resulting from the pending separation from the European Union. Being a globally diversified company, management believes it is well equipped to combat uncertainties that come its way.

The business of the company continues to run smoothly in Europe as well as in the UK and it stands firm on its 2016 earnings projection. However, Brexit may subject the company to a high level of operating risk in the long run if trade barriers are raised.

United Technologies carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the same space include Leucadia National Corporation (NYSE:LUK) , Honeywell International Inc. (NYSE:HON) and Carlisle Companies Incorporated (NYSE:CSL) . All three stocks carry a Zacks Rank #2 (Buy).