Hamilton Sundstrand is associating with AVIC Electromechanical Systems Co., a division of Commercial Aviation Corp. of China, to design the C919 single-aisle plane’s power system. Hamilton Sundstrand has also been selected to make the electric system, pilot controls, and fire and overhead protection system for the 150-seater C919 aircraft.
The company said those contracts will be worth around $1.5 billion. Hamilton Sundstrand is a United Technologies Corp. (UTX) company.
Aircraft engine maker Pratt & Whitney, another United Technologies company, announced that it was awarded a $46 million contract to provide engines to the Egyptian air force. The engines will provide power to the air force’s new fleet of 20 F-16 aircraft.
The Pratt & Whitney segment supplies aircraft engines to the commercial, military, business jet, and general aviation markets. It also manufactures aerospace propulsion systems for the U.S.space shuttle program.
United Technologies has strong market positions in aerospace/defense and global infrastructure with a portfolio that includes: Carrier, Otis, Hamilton Sundstrand, Pratt & Whitney, Sikorsky and Fire & Security.
United Technologies is one of the few companies that can take advantage of strategic M&A once liquidity is restored and functioning M&A markets re-emerge, which are more likely in the remainder of FY2010.
The company is highly dependent on the U.S.government’s defense budget. Its business may also be affected by government contracting risks.
The company designs, manufactures and services products that incorporate advanced technologies. The introduction of new products and technologies involves risks pertaining to acceptance, market and reputation which cannot be correctly anticipated.
United Technologies provides high technology products and services to the building systems and aerospace industries worldwide. Honeywell International Inc (HON) is a major competitor.
We currently have a Neutral recommendation on United Technologies Corporation.
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