United Technologies Corp. (UTX - Free Report) recently divested the power system unit division of Pratt & Whitney to Mitsubishi Heavy Industries (“MHI”) for an undisclosed amount. As per the agreement, Pratt & Whitney will offer engineering and manufacturing services for the development of the FT4000 Power Systems gas turbine. Additionally, in the long term, Pratt & Whitney will provide GG8 turbines to Mitsubishi.
Pratt & Whitney Power Systems unit primarily deals with the engineering, assembly and sales of aero-derivative gas turbines and provides related services to gas turbines along with engineering, procurement and construction of power generation systems. This business is an excellent fit for Mitsubishi as it is mainly focused on the gas turbines business. In the last reported quarter, revenues from Pratt & Whitney increased 11.5% year over year to $3,402 million. United Technologies has adopted this strategic initiative to focus on its core aerospace and commercial businesses.
Based in Hartford, Conn., United Technologies is a diversified business conglomerate serving various end markets such as aerospace, defense and commercial construction. The growth of the company is driven by both organic and inorganic growth. The Pratt & Whitney segment of United Technologies primarily supplies aircraft engines to the commercial, military, business jet, and general aviation markets. It also manufactures aerospace propulsion systems for the U.S. space shuttle program.
United Technologies currently has a Zacks Rank #3 (Hold). Other stocks that look promising and are worth a look now are Honeywell International Inc. (HON - Free Report) , Macquarie Infrastructure Company LLC (MIC - Free Report) and ITT Corporation (ITT - Free Report) each having a Zacks Rank #2 (Buy).