UTC Reports Second Quarter EPS Growth From Continuing Operations of 15 Percent; Expects 2012 EPS of $5.25 to $5.35 on Sales of $58 Billion to $59 Billion and Increases Restructuring

United Technologies Corp. (NYSE:UTX) today reported second quarter 2012 results. All results in this release reflect continuing operations unless otherwise noted.

Earnings per share of $1.62 and net income attributable to common shareowners of $1.5 billion, were up 15 percent and 14 percent, respectively, over the year ago quarter. Results for the current quarter include $0.10 per share of net favorable one-time items, partially offset by $0.06 of restructuring costs. Earnings per share in the year ago quarter included $0.05 per share of net favorable one-time items, partially offset by $0.04 of restructuring costs. Before these items, earnings per share increased 13 percent year over year. The effective tax rate for the quarter was 22.5 percent. Foreign currency translation, and hedges at Pratt & Whitney Canada, had an adverse impact of $0.05.

Click here to read the UTC press release. 

United Technologies to Sell Rocketdyne Unit to GenCorp Inc.

United Technologies Corp. (NYSE: UTX) announced it has reached agreement to sell its Rocketdyne unit, currently part of Pratt & Whitney, to GenCorp Inc. for $550 million. The transaction is expected to close in the first half of 2013.

As previously announced, proceeds from the sale will be used to repay a portion of the short-term debt incurred to finance the proposed acquisition of Goodrich Corporation. The transaction is subject to customary closing conditions, including regulatory approvals.

Click here to read the UTC press release.

Coverage:

• GenCorp To Pay $550M For UTC's Rocketdyne (Hartford Courant)
• GenCorp To Pay $550M For UTC's Rocketdyne (Reuters, via Aviation Week)
• United Tech. sells Rocketdyne unit for $550 mln (MarketWatch)
• Rocketdyne sold to GenCorp for $550 million (Los Angeles Times)
• GenCorp buying P&W Rocketdyne (United Press International)
• GenCorp to buy rocket manufacturer Rocketdyne (Flight International)
• Aerojet's Parent Company Bids $550 Million for Rival Rocketdyne (SpaceNews)

Pratt & Whitney President Testifies Before House Armed Services Committee

Pratt & Whitney President and Aerospace Industries Association Chairman Dave Hess testified before the House Armed Services Committee Wednesday on the uncertainty around the topic of sequestration and the possible effects on national defense.

Broadly, sequestration involves spending cuts mandated by the Budget Control Act of 2011, which take effect on Jan. 2, 2013, unless Congress and the administration agree on a solution. There is significant uncertainty over how sequestration would work, and many groups, including AIA, are seeking clarification from Washington.

Hess shared his perspective on the detrimental consequences that sequestration could cause on the defense industry and urged the White House for more clarity.

"As an industry, we are already seeing the impacts of potential sequestration budget cuts today," Hess said. "Companies are limiting hiring and halting investments - largely due to the uncertainty about how sequestration cuts would be applied."

Click here to read the full text of the testimony.

Coverage:

• Defense company execs warn of layoffs if cuts go through (Federal News Radio)
• Defense executives plead for Congress to avoid budget cuts (Reuters)
• Defense Contractors Say Hiring Slows Before Budget Cuts (Bloomberg)
• Defense contractors speak out against budget cuts (Washington Post)
• Aerospace execs tell Congress that 'sequestration' will cost jobs (Los Angeles Times)
• Aerospace industry fears looming defense cut, lack of R&D (Seattle Times)
• CEOs in Crossfire At Sequestration Hearing (AOL Defense)
• Defense executives warn of dire cuts (Politico)
• Defense firm chief says tax hikes should be on sequester table (The Hill)
• As Defense Cuts Loom, Weapons Makers Say Tax Hikes Should Be On The Table (Huffington Post)
• Industry Execs: Don't Rule Out Tax Hikes to Avoid Defense Cuts (U.S. News)

Pratt & Whitney to Provide PurePower® PW1200G Engines on SkyWest, Inc. Order for 100 Mitsubishi Regional Jets

Pratt & Whitney will provide exclusive power for 100 Mitsubishi Regional Jet (MRJ) aircraft for an order announced today by Mitsubishi Aircraft Corporation and SkyWest, Inc. The agreement represents 200 PurePower PW1200G engines with deliveries scheduled to begin in 2017.

Each Mitsubishi Regional Jet is powered by two PurePower PW1200G engines. To date, Pratt & Whitney has announced orders for more than 2,800 PurePower engines, including options. The PurePower family of engines uses an advanced gear system allowing the engine’s fan to operate at a different speed than the low-pressure compressor and turbine. The combination of the gear system and an all-new advanced core deliver the improvements in fuel efficiency, environmental emissions and noise. 

Click here to read the Pratt & Whitney press release.

Air Astana Selects Pratt & Whitney PW4000-94” Engines in Deal Valued at $90 Million

Air Astana has selected Pratt & Whitney’s PW4000-94” engine for its order of three firm and one option Boeing 767-300 ER aircraft. The contract is valued at approximately $90 million. Delivery of the engines will start in 2013.

Air Astana, the flag carrier of Kazakhstan and best airline in Central Asia, was incorporated in 2001 and is based in Almaty, Kazakhstan. The airline’s fleet of 26 aircraft offers service to around 50 domestic and international locations. Air Astana is IOSA registered and has four Skytrax stars. 

Click here to read the Pratt & Whitney press release.

Pratt & Whitney: Power People Depend On

This video was produced for use on the Pratt & Whitney exhibit at the Farnborough Air show.

Pratt & Whitney and JetBlue Airways Finalize Agreement for PurePower® PW1100G-JM Engines for Airbus A320neo Family Aircraft

FARNBOROUGH AIR SHOW – Pratt & Whitney and JetBlue Airways signed a definitive agreement for PurePower PW1100G-JM engines to power its order of 40 firm A320neo family aircraft finalizing the MOU announced in late 2011. The agreement includes 86 PurePower engines with a long-term PureSolutionSM maintenance service agreement. Deliveries are scheduled to start in 2018.

The PurePower engine uses an advanced gear system allowing the engine’s fan to operate at a different speed than the low-pressure compressor and turbine. The combination of the gear system and an all-new advanced core delivers double-digit improvements in fuel efficiency and environmental emissions as well as a 50 percent reduction in noise. 

Click here to read the Pratt & Whitney press release.

Visit www.purepowerengines.com for more information about the PurePower engine.

Pratt & Whitney Signs Memorandum of Understanding for Exclusive Maintenance Services Agreement with Alba Star Airlines

FARNBOROUGH AIRSHOW - Pratt & Whitney has signed a memorandum of understanding for an exclusive maintenance services agreement with Alba Star Airlines to provide engine overhaul services on the airline's fleet of CFM56-3 engines.

According to the memorandum of understanding, under the exclusive five-year agreement, Pratt & Whitney Global Service Partners will provide engine overhaul services for up to five Alba Star Airlines' CFM56-3 engines, with additional coverage for unplanned repairs, which will help the airline reduce engine overhaul costs and turnaround time thanks to the Pratt & Whitney Global Service Partners network's extensive capabilities and customer-tailored solutions. Alba Star Airlines expects to provide its first engine for overhaul to Pratt & Whitney Global Service Partners' Turkish Engine Center beginning in November 2012.

Click here to read the Pratt & Whitney press release. 

Engine Alliance Announces GP7200 Engine Enhancements and Marks One Million Flight Hours

FARNBOROUGH AIRSHOW - Today the Engine Alliance announced a series of performance and durability enhancements to the GP7200 engine applicable to new engine deliveries that will begin to enter service later this year.

The refinements, to be released into production over the next 18 months, incorporate upgrades to engine clearances and sealing, introduce an improved turbine blade and offer a modest incremental weight reduction. These performance enhancements are in addition to the recently announced demonstrated improvement in GP7200 fuel consumption published in Airbus’ A380 performance handbook – the third positive adjustment since December 2007 – and to a series of weight reductions that put the engine well below production requirements. 

Click here to read the Engine Alliance press release.

Visit www.enginealliance.com for more information about the GP7200 engine.

Pratt & Whitney Offers Service-Proven PW4170 Advantage70™ Engine for Airbus 240 Tonne A330 Aircraft

FARNBOROUGH AIR SHOW – Pratt & Whitney will offer its PW4170 Advantage70™ engine, the most reliable and fuel efficient engine available for the A330 aircraft, for the new Airbus 240 tonne A330 aircraft.

With nearly 14 million hours in service, the PW4000-100" engine is the most reliable engine available on the A330 with the lowest delay and cancellation rate of any engine on the A330.

Click here to read the Pratt & Whitney press release. 

Pratt & Whitney President Briefs Media at Farnborough

Video Credit: AirInsight, via YouTube

Pratt & Whitney President David Hess provided a business update in a media briefing at the Farnborough Air Show this morning. AirInsight captured this footage of the briefing.

Pratt & Whitney PurePower® PW1200G Engine Successfully Completes First Flight Test Program

FARNBOROUGH AIRSHOW – The Pratt & Whitney PurePower® PW1200G engine successfully completed its first flight test program on June 21, following 23 flights and 127 hours on a specially designed stub wing aboard Pratt & Whitney's Boeing 747SP flying test bed.

The flight test program, which began on April 30, successfully validated the PW1200G engine's in-flight performance, operability and control systems. To date, Pratt & Whitney has completed more the 1,500 hours and nearly 6,000 cycles in testing the PW1200G engine, which will power Mitsubishi Aircraft Corporation's Mitsubishi Regional Jet.

Click here to read the Pratt & Whitney press release. 

Pratt & Whitney Celebrates 40 Years of F100 Engine Power

FARNBOROUGH AIRSHOW - Pratt & Whitney celebrates 40 years of F100 propulsion, marking the development and delivery of its first F100 engines to support the F-15’s first flight on July 27, 1972. Today, the F100 engine powers the F-15, F-16 and X-47B Unmanned Combat Air System (UCAS), with an expanding F100 family of variants. Twenty-four customers worldwide have selected the F100 to power their F-15 and F-16 fighter jets over the past 40 years.

Pratt & Whitney’s F100 engine is one of the most successful fighter engines in history. The combat-proven engine has more than 27 million engine flying hours of experience. Pratt & Whitney has built more than 7,200 F100 engines for 23 countries around the world.

Click here to read the Pratt & Whitney press release. 

Pratt & Whitney Signs Agreement with Australian Supplier Broens Industries for Additional F135 Engine Work

FARNBOROUGH AIR SHOW - Pratt & Whitney has awarded Broens Industries a follow on purchase order to manufacture complex support equipment for the sustainment solution of the F135 propulsion system powering the F-35 Lightning II. This new order valued at approximately $300,000 is for units which will be utilized at the first operational and training bases in the U.S.

Pratt & Whitney previously awarded Broens Industries a purchase order to develop and prototype complex support equipment specifically for removing and installing the F135 engine gearbox. This new order initiates the production phase of the project, with a potential value estimated at more than $7 million.

Click here to read the Pratt & Whitney press release. 

Pratt & Whitney Becomes Majority Program Shareholder in IAE

FARNBOROUGH AIRSHOW - Today, Pratt & Whitney and IAE International Aero Engines (IAE) shareholders, Japanese Aero Engines Corporation and MTU Aero Engines GmbH, announced details of the June 29 closing of Pratt & Whitney’s agreement to purchase Rolls-Royce’s program share in the IAE Collaboration. Pratt & Whitney has increased its program share to 61 percent and MTU Aero Engines has increased its program share from 11 to 16 percent via a separate risk revenue sharing agreement with Pratt & Whitney. In addition, IAE announced that the IAE board of directors has named Pratt & Whitney President David Hess Chairman of the board of directors and Jon Beatty as the new IAE president.

The program share purchased from Rolls-Royce is held by a Pratt & Whitney wholly-owned subsidiary named Pratt & Whitney Aero Engines International GmbH (P&WAEI) headquartered in Luzern, Switzerland. P&WAEI will assume responsibilities and obligations in the IAE collaboration for most parts and sourcing previously handled through Rolls-Royce.

Click here to read the Pratt & Whitney press release. 

Norwegian Air Shuttle Selects Pratt & Whitney PurePower® PW1100G-JM Engines to Power Airbus A320neo Family Aircraft

FARNBOROUGH AIRSHOW – Pratt & Whitney and Norwegian Air Shuttle signed a memorandum of understanding to power 50 firm Airbus A320neo family aircraft with PurePower PW1100G-JM engines with first delivery scheduled in 2016.

The PurePower engine uses an advanced gear system allowing the engine’s fan to operate at a different speed than the low-pressure compressor and turbine. The combination of the gear system and an all-new advanced core delivers fuel efficiency and environmental benefits. The first PurePower PW1100G-JM engine is scheduled to begin testing by the end of this year.

Click here to read the Pratt & Whitney press release.

Cebu Pacific Air Selects Pratt & Whitney PurePower® PW1100G-JM Engines to Power Airbus A321neo Aircraft

FARNBOROUGH AIRSHOW - Cebu Pacific Air (PSE: CEB), the Philippines’ largest carrier, has selected Pratt & Whitney PurePower® PW1100G-JM engines for its order of 30 firm and 10 option A321neo aircraft. The agreement also includes a ten-year PureSolutionSM maintenance package for each engine. Deliveries are scheduled to begin in 2017.

The PurePower engine uses an advanced gear system allowing the engine’s fan to operate at a different speed than the low-pressure compressor and turbine. The combination of the gear system and an all-new advanced core delivers fuel efficiency and environmental benefits.

Click here to read the Pratt & Whitney press release.

Pratt & Whitney and IndiGo Finalize Agreement for 300 PurePower® PW1100G-JM Engines

FARNBOROUGH AIRSHOW - Pratt & Whitney and IndiGo signed a definitive agreement for PurePower PW1100G-JM engines for 150 Airbus A320neo family aircraft. The agreement includes 300 firm PurePower PW1100G-JM engines with additional options and a long-term PureSolutionSM maintenance agreement. Deliveries are scheduled to begin in 2015.

As part of this agreement, each IndiGo Airbus A320neo family aircraft will be powered by two PurePower PW1100G-JM engines with benefits including double-digit reductions in fuel burn, environmental emissions, engine noise and operating costs when compared with today’s engines.

Click here to read the Pratt & Whitney press release. 

CIT and Pratt & Whitney Finalize Agreement for PurePower® PW1100G-JM Engines for Airbus A320neo Family Aircraft

FARNBOROUGH AIRSHOW - CIT Group Inc. (NYSE: CIT), a global leader in transportation finance, and Pratt & Whitney, a division of United Technologies Corp. (NYSE: UTX), today announced from the Farnborough International Air Show that they signed a definitive agreement for 60 PurePower PW1100G engines for CIT’s order of Airbus A320neo family aircraft. This agreement follows the memorandum of understanding previously announced at the Paris Air Show in 2011. Deliveries are scheduled to start in 2016.


Each CIT Aerospace Pratt & Whitney-powered neo family aircraft will be powered by two PurePower PW1100G-JM engines with benefits including double-digit reductions in fuel burn, environmental emissions, engine noise and operating costs when compared with today’s engines.

Click here to read the Pratt & Whitney press release. 

Pratt & Whitney Expands Global JT9D Repair Network with Israel Aerospace Industries

FARNBOROUGH AIRSHOW - Pratt & Whitney and Israel Aerospace Industries have signed a 10-year agreement to establish Israel Aerospace Industries as a Designated Service Provider for JT9D engine family maintenance.

Israel Aerospace Industries' Bedek Aviation Group located at Ben Gurion International Airport in Israel, is a high quality provider of MRO services, and engine and component maintenance services for a wide range of military and commercial customers worldwide.

Click here to read the Pratt & Whitney press release.

Shanghai Airlines Signs Three-Year Agreement for Pratt & Whitney Engine Management Programs

FARNBOROUGH AIRSHOW - Shanghai Airlines has signed a three-year Pratt & Whitney Engine Management Program agreement, which includes on-wing engine monitoring and data analysis recommendations for the airline’s fleet of 10 PW2037-powered Boeing 757-200 aircraft.

Under the agreement, Pratt & Whitney’s team of skilled engine performance analysts will use its web-based Advanced Diagnostics & Engine Management (ADEM™) tools to monitor engine health and make maintenance recommendations to help Shanghai Airlines maintain world-class reliability and lower maintenance costs.

Click here to read the Pratt & Whitney press release. 

Pratt & Whitney Delivers First Engines for Boeing C-17s to India

FARNBOROUGH AIRSHOW - Pratt & Whitney, a unit of United Technologies Corp. (NYSE: UTX), has delivered the first four F117 engines for the Indian Air Force to power its fleet of Boeing C-17 Globemaster III transport aircraft. India’s Ministry of Defence signed a Letter of Offer and Acceptance with the U.S. government in 2011 to acquire 10 C-17s. India will take delivery of its first C-17s in mid 2013.

Four F117s provide exclusive power for the C-17 Globemaster III, the world’s premier heavy airlifter. The F117-PW-100 is the sister engine of Pratt & Whitney’s PW2040 commercial engine, which powers the Boeing 757. With more than 50 million hours of proven military and commercial use, the F117/PW2037 has proven itself as a world-class, dependable engine. Pratt & Whitney’s ongoing investment in product improvements has enabled the engine to continuously surpass established goals for time on wing, in-flight shut downs and support-turnaround time.

Click here to read the Pratt & Whitney press release. 

Pratt & Whitney Welcomes Airbus A320 Family Assembly Line to United States

Pratt & Whitney welcomed an Airbus announcement on July 2 that it will establish a manufacturing facility in the United States to assemble and deliver A320 family aircraft. The new Airbus plant will be located at the Brookley Aeroplex in Mobile, Alabama, and it will be Airbus’ first U.S.-based production facility. Pratt & Whitney provides engines for the entire Airbus A320 family of aircraft - the PurePower® PW1100G-JM engine and the V2500 engine through IAE International Aero Engines.

To date, Pratt & Whitney has announced 976 firm engine orders for the PurePower PW1100G-JM engines for the A320neo family of aircraft. The PW1100G-JM engine will be the first engine to power the world’s best-selling narrowbody aircraft when it enters service in 2015.

Click here to read the Pratt & Whitney press release.

Coverage:

• Airbus Opening 1st Plant in U.S.; Pratt Welcomes News (Hartford Courant)
• Low-cost manufacturing lures Airbus to Boeing's back yard (Flight International)
• EADS to Build U.S. Assembly Line for Airbus A320 (New York Times)
• Airbus To Build Planes In Alabama, Challenging Boeing (Bloomberg News)
• Oohlalabama! Airbus finally goes American (Reuters)
• Airbus To Deliver A320s From Mobile In 2016 (Aviation Week)

Three Pratt & Whitney Rocketdyne RS-68A Engines Power Delta IV Heavy Upgrade Vehicle on Inaugural Flight

Video Credit: SpaceVidsNet, via YouTube

The sky rumbled and the ground shook as the three most powerful hydrogen-fueled liquid rocket engines ever built successfully boosted a U.S. government satellite into orbit on June 29. Developed by Pratt & Whitney Rocketdyne, the RS-68A engines thundered into the sky on their inaugural launch, boosting a United Launch Alliance Delta IV Heavy rocket from the pad at Cape Canaveral Air Force Station, Fla. Once above Earth’s atmosphere, the reliable Pratt & Whitney Rocketdyne RL10B-2 engine provided upper-stage propulsion.

The RS-68A is a liquid-hydrogen/liquid-oxygen booster engine designed to provide increased thrust and improved fuel efficiency for the Delta IV family of launch vehicles. It evolved from the RS-68 engine, which was developed and certified for commercial use with private company funds. Each RS-68A provides 702,000 pounds of lift-off thrust, or 39,000 more pounds of thrust than the RS-68 engine, with increased combustion efficiency as well. During hot-fire tests, the RS-68A engine demonstrated the ability to operate for 4,800 seconds of cumulative run time – more than 10 times what’s needed to boost the Delta IV Heavy rocket into space.

Click here to read Pratt & Whitney's press release. 

Coverage:

• Delta IV launch: Secret, but very loud (Florida Today)
• World's most powerful rocket launches secret US satellite (Christian Science Monitor)
• Delta IV rocket launch from Cape Canaveral video (ABC Action News)
• Delta IV rocket launches into space (WMKG Orlando)

Pratt & Whitney and Rolls-Royce Close on Deal for Program Share in IAE

Pratt & Whitney, a United Technologies Corp. (NYSE: UTX) company, closed June 29 on its agreement to purchase Rolls-Royce’s program share in IAE International Aero Engines (“IAE”). More information about the closing will be announced by IAE at the Farnborough Air Show on July 9.

Click here to read Pratt & Whitney's press release. 

Coverage:

• R-R Divests IAE Holding, Unveils Partners For New Joint Venture (Aviation Week)
• Rolls-Royce Sells Stake In IAE Collaboration for $1.5 Billion (Dow Jones)
• Pratt & Whitney closes on buyout of Rolls-Royce’s IAE shares (Air Transport World)