UTC Aerospace Systems, a division of United Technologies Corp. (UTX - Free Report) , recently signed a long-term service agreement with ST Aerospace for Boeing 787 fleet. The license agreement entails ST Aerospace to provide maintenance, repair and overhaul (MRO) services to UTC Aerospace Systems while developing components for the Boeing 787 aircraft.
ST Aerospace (Singapore Technologies Aerospace Ltd) is the largest commercial airframe MRO provider. It is the aerospace arm of ST Engineering, an integrated engineering group providing solutions and services for aerospace, electronics, land systems and marine sectors. ST Aerospace’s customer base includes advanced military forces, major airlines and leading freight carriers.
Under this agreement, ST Aerospace will provide reliable nose-to-tail maintenance solutions for UTC Aerospace Systems components installed on the Boeing 787. With the prevailing competitive environment in the aviation industry, UTC Aerospace primarily aims to build long-term customer relationship and this agreement is a further initiative in this regard. Moving forward, ST Aerospace aims to provide adaptive maintenance solutions to Boeing 787 operators to offer long-term value to its customers.
Based in Hartford, Conn., United Technologies provides high-end technology products and services to the building systems and aerospace industries worldwide. The company is a diversified business conglomerate serving various end markets such as aerospace, defense and commercial construction. The business diversification allows the company to remain profitable during tough economic times.
The operations of the company are primarily classified into two principal businesses: commercial and aerospace. The aerospace business of the company consists of Sikorsky aircraft and the UTC Propulsion & Aerospace Systems, which includes UTC Aerospace Systems and Pratt & Whitney divisions. In the last reported quarter, UTC Aerospace systems sales was $3,263 million compared with $1,236 million in the year-ago quarter.
UTX currently has a Zacks Rank #3 (Hold). Other stocks that look promising and are worth a look now in the industry include Compass Diversified Holdings (CODI - Free Report) , Hutchison Whampoa Ltd and ITT Corporation (ITT - Free Report) , each carrying a Zacks Rank #2 (Buy).