Propulsion and Aerospace segment
United Technologies’ (UTX) Propulsion and Aerospace segment was formed in 2011 as a combination of Pratt & Whitney and UTC Aerospace Systems, though each segment reports its financials separately. UTX forms a significant holding of the Dow Jones Industrial Average ETF (DIA).
Pratt & Whitney
Pratt & Whitney manufactures aircraft engines and auxiliary power units for the commercial, military, business jet, and general aviation markets. The segment also includes maintenance, repair, and overhaul services, including the sale of spare parts, as well as fleet management services for large commercial engines.
The segment’s sales recorded a three-year compounded average growth of 6%. Sales increased from $2995 million in 2011 to $3559 million in 2013. Operating income remained stagnant for the same period, from $1867 million in 2011 to $1876 million in 2013. The division competes with the Aerospace division of General Electric (GE) and Honeywell International (HON).
UTC’s Aerospace Systems segment
UTC’s Aerospace Systems segment supplies technologically advanced aerospace and defense products. The segment provides aerospace products like actuation systems, aero structures, air management systems, electric systems, engine components and control systems, interiors, ISR systems, landing gear systems, propeller systems, sensors & integrated systems, space systems, and wheels & brakes.
The segment also provides aftermarket services that include spare parts, overhaul and repair, engineering and technical support and fleet maintenance programs. The segment’s major competitor is Whirlpool Corporation (WHR).
The segment has shown significant growth in the past three years. Revenue increased from $1021 million in 2011 to $2530 million in 2013, while operating income increased from $759 million in 2011 to $2018 million in 2013.
In our next article we’ll read more about UTC’s Sikorsky segment.