Diversified conglomerates General Electric Company (GE - Free Report) and United Technologies Corp. (UTX - Free Report) recently procured three Department of Defense contracts each. A total of 37 Pentagon Defense Contracts were awarded, which had a total value of $2.2 billion. The contracts signify a thaw in defense budget as the government slowly eases its purse strings.
GE Aviation, an operating unit of General Electric, won a $7.5 million cost-plus-fixed-fee delivery order relating to the F404 Engine Component Improvement Program. This contract entails GE Aviation to offer engineering and engine system improvement support for the U.S. Navy and also for the respective governments of Australia, Canada, Finland, South Korea, Kuwait, Malaysia, Spain, Sweden, and Switzerland through Dec 2014.
In addition, General Electric received a $7.8 million cost-plus-fixed-fee delivery order for the F414 engine. The contract, scheduled to end in Dec 2014, has the U.S. Navy and the government of Australia as its customers. CFM International, a subsidiary of General Electric, also won an $8.5 million firm-fixed-price contract to supply engine combustion liners to the U.S. Air Force through Apr 2015.
On the other hand, United Technologies’ Pratt & Whitney procured a contract worth $231.5 million relating to the F119-PW-100 engines that power Lockheed Martin Corporation’s (LMT - Free Report) F-22 Raptor stealth fighter jet. Sikorsky, one of the operating segments of United Technologies, won a $105.3 million deal to modify eight UH-60M Black Hawk Helicopters for the Saudi Arabian National Guard. At the same time, Sikorsky also received an $18.3 million maintenance contract for the U.S. Navy.
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 amid tough economic times.
General Electric is one of the largest and the most diversified technology and financial services corporations in the world. With products and services ranging from aircraft engines, power generation, water processing, and security technology to medical imaging, business and consumer financing, media content, and industrial products, the company serves over 100 million customers worldwide. Its segments include Power & Water, Oil & Gas, Energy Management, Aviation, Healthcare, Transportation, Home & Business Solutions, and GE Capital.
Both General Electric and United Technologies currently have a Zacks Rank #3 (Hold). Another notable company in the industry include ITT Corp. (ITT - Free Report) , which carries a Zacks Rank #2 (Buy).