With the help of Pratt & Whitney Rocketdyne, a unit of United Technologies Corporation (UTX), the US military has successfully launched its first Advanced Extremely High Frequency military communications satellite into orbit. The satellite was launched by a United Launch Alliance Atlas V rocket from the Cape Canaveral Air Force Station, Florida.
The Atlas V rocket works on a RL10 upper-stage engine of Pratt & Whitney and on a RD-180 booster engine from RD AMROSS LCC, a joint venture of Pratt & Whitney Rocketdyne and NPO Energomash. The power provided by Pratt & Whitney for the launch helps the US military in developing its global communication system with a high capacity and protected and secure mechanism. In partnership with United Launch Alliance, the company has already accomplished five RL10-powered missions in 2010.
The RL10 upper-stage engine has been used in the United States for more than 46 years and is a very dependable power driver, providing about 22,300 pounds of thrust. The RD-180 engine powers the core booster of the Atlas V rocket, providing about 1 million pounds of thrust.
Pratt & Whitney, which generated about 23.6% of total revenue in the second quarter of 2010, is one of the world’s premier suppliers of aircraft engines for the commercial, military, business jet and general aviation markets. Pratt & Whitney’s Global Services provides maintenance, repair and overhaul services, including the sale of spare parts, as well as fleet management services for large commercial engines.
United Technologies is expected to deliver double-digit earnings growth in FY10, given restructuring savings and an improving end-market environment. The emerging markets continue to do well, with particular strength in India and Brazil, where combined orders for the commercial business units grew by over 25% during the second quarter of 2010.
United Technologies Corporation was founded in Delaware in 1934. The company provides high technology products and services to the building systems and aerospace industries worldwide. Growth is attributable to acquisitions and the internal development of the existing businesses. United Technologies has six operating units. Major competitors of the company are Boeing Co. (BA) and General Electric Co. (GE).
We currently maintain a Neutral rating on United Technologies, with a Zacks Rank #3 (short-term ‘Hold’ recommendation) over the next one-to-three months.
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