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UTX Unit Collaborates with Ophir to Boost Product Portfolio

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UTC Aerospace Systems – an operating unit of United Technologies Corporation – recently announced that it has entered in a memorandum of agreement with Ophir Corporation.

Ophir develops, manufactures and services laser radar avionics for military and commercial customers. The company offers innovative, laser radar solutions to increase aircraft flight safety and optimize wind turbine energy production.

Per the deal, both the companies will work together to develop technology and products for entry into commercial service market within the next five years. This new system will make use of Light Detection and Ranging sensing techniques for measuring various air data parameters.

Per experts, in the future, laser air data systems are expected to look ahead of the aircraft to better navigate turbulence, enhancing passenger safety and comfort. Ophir’s laser air data system technology helps in measuring the full range of air data parameters. The laser air data system is expected to be integrated in UTC Aerospace Systems' field-proven air data sensors as part of a more intelligent air data architecture, complementing and strengthening an aircraft's overall air data collection ability.

In tune with the dynamic industry trends and evolving needs of the clients, UTC Aerospace Systems decided to refurbish its operations with a digital edge. This collaboration will enable the companies to improve their top line and be ahead of their peers in the industry. The company has been focusing on improving its operations in the past couple of months. Recently, it unveiled its plans to take its performance to the next level by augmenting the maintenance, repair and overhaul services. These include a comprehensive portfolio of digital solutions along with a new customizable self-service portal to maximize the operational efficiencies of its aftermarket customers. At the core of this endeavor there is a unique collaboration between UTC Aerospace Systems and United Technologies Digital, the latter specifically focused on rapidly expanding the digital capabilities and optimizing software development processes. The digital focus is likely to achieve higher levels of productivity by creating a simple data-driven innovative workplace that delivers intelligent products and services.

Such focused efforts are likely to significantly improve the revenues of parent firm, United Technologies. The company has outperformed the Diversified Operations industry with an average return of 8.7% compared with 0.7% gain for the latter, over a period of 90 days. In order to further improve its operations, United Technologies has also revamped its aerospace unit. This included an overhaul of its organizational structure in the aerospace business along with some key changes in the leadership positions within it. United Technologies anticipates that the streamlined organizational setup would enable it to better serve its customers.

United Technology currently carries a Zacks Rank #2 (Buy). Some other stocks worth considering in the industry include 3M Company (MMM - Free Report) , Barloworld Limited (BRRAY - Free Report) and Honeywell International Inc. (HON - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

3M has a long-term earnings growth expectation of 9.7%. It surpassed estimates thrice in the trailing four quarters with an average positive earnings surprise of 1.3%.

Barloworld has a long-term earnings growth expectation of 17.2%.

Honeywell has a long-term earnings growth expectation of 9.3%. It surpassed estimates thrice in the trailing four quarters with an average positive earnings surprise of 2.0%.

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