TransDigm Group Incorporated (TDG) reported fourth quarter 2009 earnings per share of 82 cents, beating the Zacks Consensus Estimate of 80 cents. Net sales for the quarter rose 4.3% to $197.4 million from $189.2 million in the comparable year-ago quarter. The favorable contribution from acquisitions was partially offset by a 4.6% decline in organic net sales.  The decrease in organic sales was primarily due to lower commercial OEM and aftermarket demand partially offset by strong defense sales. The company completed the acquisition of three proprietary aerospace component businesses and ended the fiscal year in sound financial condition with nearly $190 million in cash and almost $200 million of unutilized capacity under its revolving credit facility.  For 2010, in the Commercial OEM segment, the company is assuming a revenue decline in the mid-single digit percent range. This is based on a reduction in commercial transport rates in ...

United Technologies Corporation (UTX) reported third quarter 2009 earnings per share of $1.14 and net income attributable to common shareowners of $1.1 billion, down 14% and 17%, respectively, from the year ago quarter. This was ahead of the Zacks Consensus Estimate of $1.12.  Revenues for the quarter at $13.4 billion were 11% below prior year including organic decline (7%) and adverse foreign currency translation (3%). Segment operating margin at 14.5% was 20 basis points higher than the prior year.  Cash flow from operations less capital expenditures was 160% of net income attributable to common shareowners on significant inventory reductions across both commercial and aerospace businesses. Cash flow from operations was $1.9 billion, including $150 million of domestic pension contributions. Capital expenditures were $161 million in the quarter.  United Technologies expects 2009 earnings per share at $4.10, the midpoint of the prior range of $4.00 to ...

For Immediate Release

Chicago, IL – November 4, 2009 – Zacks.com releases the latest Industry Outlook. Today, Zacks Equity Research discusses the Aerospace & Defense sector, including United Technologies Corporation (UTX), Oshkosh Corporation (OSK), The Boeing Company (BA) and Honeywell International Inc. (HON).

A synopsis of today’s Industry Outlook is presented below. The full article can be read at http://www.zacks.com/stock/news/26834/Aerospace+%26amp%3B+Defense.

With core defense spending expected to slow, U.S. defense contractors need to identify additional revenue sources for the coming years. 2009 holds potential for interesting merger and acquisition (M&A) activity, mostly smaller deals by larger A&D firms to fill in capability gaps -- particularly in the security, defense electronics and aftermarket services business areas. U.S. defense firms may see opportunities in credit-squeezed markets to pick up U.S. assets at historically low price-to-earnings multiples.

Some large companies are expanding into the adjacent markets

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OVERVIEW Inherently, big defense contractors are expected to eliminate jobs as the Pentagon has lowered spending on traditional weapon systems, while smaller, niche companies may accelerate hiring as the United States garners resources to protect ground troops and strategic computer networks. Industry pioneer Lockheed Martin Corporation (LMT) aims to reduce 600 jobs as a result of the US Defense Department's decision to terminate the VH-71 presidential helicopter program. The Boeing Company (BA) hinted that Pentagon cuts would claim 1,000 jobs in its defense business, affecting staffing at various work sites in the United States in missile defense and in the Army's Future Combat Systems modernization program, which is now being opened to more competition. The large commercial aircraft sector is expected to generate most of its revenue from Asia Pacific Japan (APJ) and the Middle East, relying less on U.S. orders because of the ...

United Technologies Corporation (UTX) announced George David, 67, will retire as Chairman of the Board of Directors at the end of the year, concluding 34 years of service with UTC, including 14 years as Chief Executive Officer. Louis Chenevert, 52, President and Chief Executive Officer, will succeed David as Chairman, effective Jan 1, 2010, following his election by the UTC board. David will remain a consultant and adviser to the corporation for 2010.  During George’s tenure, notable changes were UTC's global expansion, with international revenues growing from 25% to more than 60% today, and its focus on process and research disciplines.  Since David took the helm in 1994, profit and revenue soared, with much of the success attributed to his hard-charging style. But with the start of the global recession last year, it is up to Chenevert to push through a large restructuring plan that will eliminate ...

Pratt & Whitney Rocketdyne has been awarded a 10-month contract by Lockheed Martin for preliminary design of the high speed accelerator for a turbine-based combined-cycle (TBCC) propulsion system, which could support flight up to Mach 6. Pratt & Whitney Rocketdyne is a unit of United Technologies Corporation (UTX).  In Phase I of the TBCC Mode Transition Demonstrator Program, Pratt & Whitney Rocketdyne will develop preliminary designs for a dual-mode ramjet combustor with related control and fuel system components.  El Al , Israel 's national airline, signed a five-year, $70 million extension agreement with jet engine maker Pratt & Whitney for engine maintenance and overhaul. The service is for PW4060 engines on El Al's Boeing 767s and 747-400s. The agreement includes management and overhaul of the engines with an option to extend the contract for up to five more years.  United Technologies Corp.'s Sikorsky Aircraft received ...

The governor of Connecticut has offered $100 million worth of incentives to jet engine manufacturer Pratt & Whitney, a United Technologies Corporation (UTX) company, to prevent the possible loss of 1,000 jobs. The five-year plan includes lifting a cap on tax credits for the parent company, providing training assistance and establishing a job retention tax credit. It also includes investments in machinery and equipment and the building of an Engineering Center for Excellence for engineers at Pratt & Whitney and other aerospace companies. The state has joined hands with the International Association of Machinists, which represents 3,700 workers and has been negotiating with Pratt & Whitney for weeks in an attempt to retain existing jobs. The Machinists offered $63 million in annual cost reduction, including reduced overtime, to help save jobs. Pratt & Whitney has been affected by the steep decline in the commercial airline ...

Aviation electronics manufacturer Hamilton Sundstrand Corp., a division of United Technologies Corporation (UTX), announced receipt of a contract from Irkut Corp. to supply systems for the Russian company's MC-21 commercial aircraft. The company will develop the plane's advanced electric power generating system, secondary electrical power distribution, Auxiliary Power Unit, wing anti-ice and bleed air conditioning for the Nitrogen Generation System. It will jointly develop the integrated Air Management System with partner NPO Nauka. Kidde Aerospace & Defense, a Hamilton Sundstrand subsidiary, will supply the fire detection and suppression system. The contract is expected to generate $2.3 billion over the life of the program. The MC-21 will carry 150 to 230 passengers at a time and is scheduled to enter services in 2016. United Technologies Corporation is a diversified company whose products include Carrier heating and air conditioning, Hamilton Sundstrand aerospace systems and industrial ...

United Technologies Corporation (UTX) reported second-quarter earnings of $1.05 per share, slightly ahead of the Zacks Consensus Estimate but down 20% year over year. Earnings per share included restructuring charges of $0.22 and one-time gain of $0.06. Net income attributable to common stockholders was $976 million, down 23% over the year-ago quarter.   Revenues of $13.2 billion were down 17% year over year due to organic decline (11%), adverse foreign currency translation (5%) and net divestitures (1%). Adjusted for restructuring costs and the one-time gain, segment operating margin was 50 basis points higher than prior year.   Benefits from cost reduction initiatives, including restructuring, have offset the impact of a $2.7 billion decline in revenues. All business units achieved double digit operating margins, with four of six – Otis, UTC Fire & Security, Sikorsky and Pratt & Whitney – increasing margins by 100 basis points or more.   However,

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Earlier this year, United Technologies Corporation's (UTX) management opined that the company could probably report earnings in the range of $4.65 to $5.15 per share on revenues of some $57 billion for 2009.

At the time, that seemed a bit heroic to us, and our 2009 projection called for earnings of $4.60 per share on revenues of $55.4 billion.

Today, UTX revised its 2009 guidance downward to EPS in a range of $4.00 to $4.50 on revenues of approximately $55 billion (at least our revenue forecast was close enough for government work).

The gist of today's announcement was that employment was going to descend by 11,600 (primarily overhead types) and that restructuring costs (net of one-time gains) would climb to the $750 million level. In addition, there could be some adjustments to the hourly workforce as demand dives.

The Company reduced the value of UTX shares it might

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