United Technologies Corporation (NYSE:UTX) and Champion Aerospace LLC announced that they have finalized Life of Program long-term supply agreements to support production at UTC’s aerospace businesses.
The UTV2 long-term supply agreements secure Life of Program contracts for exciters, ignition leads and igniters required by UTC primarily at UTC Aerospace Systems on many programs including Embraer E-Jets E2, Airbus A320neo, Bombardier C Series, Mitsubishi MRJ, F-35 Lightning II and many Pratt & Whitney Canada engines and APUs. These agreements position Champion Aerospace as one of UTC’s preferred sources for ignition systems components globally.
“Champion Aerospace is very proud to continue our long term partnership with United Technologies for the ignition system on the PurePower® family of engines,” said Jason Marlin, President, Champion Aerospace. “UTC’s aerospace technologies are game changers for the industry, which is something that Champion Aerospace is honored to be part of. Our performance has helped assure that we are a part of this future.”
In addition to signing long-term agreements, Champion Aerospace is actively engaged in the UTC Supplier Gold program and has set a goal of achieving Certified Gold status within the next 24 months. Champion Aerospace has also committed to the UTV2 cost-savings initiative and UTC contractual Governance program, which sets high standards for quality and on time delivery.
“We are very pleased to announce these Life of Program agreements with Champion Aerospace and commend them for their commitment to meeting UTC’s high standards for quality and performance while ensuring cost competitiveness,” said Sam Abdelmalek, Vice President, Global Supply Management and Integration, United Technologies. “UTC’s aerospace businesses are well-positioned for growth over the coming years. Suppliers like Champion Aerospace, who commit to our contractual governance standards, meet our demanding performance requirements by committing to Supplier Gold and satisfy our UTV2 cost-savings initiatives, will have the opportunity to share in this growth for years to come.” (Original Source)
Shares of United Technologies opened today at $90.94 and are currently trading down at $90.65. UTX has a 1-year high of $124.45 and a 1-year low of $87.17. The stock’s 50-day moving average is $98.82 and its 200-day moving average is $111.57.
On the ratings front, United Technologies has been the subject of a number of recent research reports. In a report issued on August 31, Jefferies Co. analyst Howard Rubel initiated coverage with a Buy rating on UTX. Separately, on the same day, Barclays’ Carter Copeland downgraded the stock to Hold and has a price target of $100.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Howard Rubel and Carter Copeland have a total average return of 18.6% and 13.3% respectively. Rubel has a success rate of 67.5% and is ranked #106 out of 3742 analysts, while Copeland has a success rate of 69.6% and is ranked #199.
United Technologies Corporation provides high technology products and services to the building systems and aerospace industries. Its business segments are Otis, UTC Climate, Controls & Security, Pratt & Whitney, UTC Aerospace Systems and Sikorsky.