Pratt & Whitney SWOT Analysis & Company Profile by BusinessReview

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									Pratt & Whitney


Pratt & Whitney: SWOT Analysis &
Company Profile

Reference code: DF0293CP

Published: Dec 2010

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Pratt & Whitney - SWOT Profile                                                      Page 1
Pratt & Whitney


Pratt & Whitney - Company Overview

Pratt & Whitney (P&W) is one of the leading aircraft engine manufacturers in the world. It is a subsidiary of United
Technologies Corp. (UTC), which provides high technology products and services to the aerospace industry. P&W offers
aircraft engines for commercial, military, business jet and general aviation. It also provides maintenance, repair and
overhaul services, including the sale of spare parts and fleet management services. In addition, P&W engages in
designing, manufacturing, and trading of power generation turbines, heavy duty gas turbines, gas turbines for maritime
applications, power systems and space propulsion systems. The company serves around 11,000 customers across 195
countries. P&W is headquartered in East Hartford, Connecticut, the US.

Pratt & Whitney - Key Facts

Pratt & Whitney, Key Facts

                                  400 Main Street, East Hartford,

Corporate Address:                Connecticut (CT), 06108, United Ticker Symbol, Stock         N/A

Telephone                         + 1 860 5654321                   No. of Employees           36,000

Fax                               N/A                               Financial Year End         December

URL                                         Revenue (in USD Million)   12,577.00

Industry                          Aerospace and Defense

Locations                         United States

Source: Annual Report, Company Website, Primary and Secondary Research


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Pratt & Whitney - Business Description

Pratt & Whitney (P&W) is a US based company engaged in designing, manufacturing and servicing of aircraft engines,
industrial gas turbines and space propulsion systems. The company manufactures aircraft engines and aircraft parts for
commercial, military and for power systems. It also offers engine overhaul services, part and accessory repair, material,
line maintenance, and specialty services. It operates across 195 countries catering to more than 11,000 customers. The
company employs 36,000 people.

The company’s commercial aircraft engines serve various airlines as well as operators. Its major products in the
commercial engine segment include PW2000 for Boeing 757; PW4000 for Boeing 747, 767 and 777 and Airbus A300,
A310 and A330; PW6000 for Airbus A318; GP7000 for Airbus A380; V2500 for Airbus A319, A320 and A321; and
PurePower PW1000G for Bombardier CSeries aircraft, Mitsubishi Regional Jet (MRJ) and Irkut MC-21 aircraft.

In the military engine segment, its products include F100 for F-15 Eagle and F-16 Fighting Falcon, F117 for C-17
Globemaster III, F119 for F-22 Raptor and F135 for F-35 Joint Strike Fighter.
Under the Small and Medium Engines segment, the company offers 10 families of engines serving a variety of
applications. These engines include the PW600 family for a new generation of Very Light Jets and the PW307A for the
Dassault Falcon 7X.

The Space Propulsion segment is operated through Pratt & Whitney Rocketdyne division. It engages in the design,
development and manufacture of sophisticated aerospace propulsion systems which finds application in both military and
commercial segments, including the US space shuttle program. It supplies booster engines for Delta II rockets as well as
boosters and upper stage engines for Delta IV and Atlas V rockets.

Under the Pratt & Whitney Power Systems (PWPS) segment, the company operates the industrial gas turbine business. It
offers power generation and mechanical drive solutions for various markets including electric generation, oil and gas. Its
industrial turbines range in power from 500 KW to 60 MW and offer variable speed mechanical drive for gas compression,
liquid pumping and marine propulsion. The segment also offers service throughout the entire product life cycle. In
addition, the segment offers aftermarket parts and advanced repairs for non-Pratt & Whitney heavy-duty industrial frame
type gas turbines that utilize Pratt & Whitney superior coatings, alloys and cooling schemes. In 2009, Pratt & Whitney’s
parent company UTC completed the transition of UTC Power’s geothermal power systems business to PWPS segment.

Through Pratt & Whitney Global Services, the company provides maintenance, repair and overhaul services, which
include the sale of spare parts and fleet management services for large commercial engines. It also offers engine
overhaul services, part and accessory repair services, material services, line maintenance services, and specialty
services for its military customers.

Through its Pratt & Whitney Canada (P&WC) division, the company manufactures a range of engines, which include
turbofan, turboshaft and turboprop, for business, light jet, utility, regional, and military aircraft and helicopters.

Pratt & Whitney’s manufacturing facilities span across the regions of North America, Europe & Middle East, Asia and
Emerging Markets. It owns 36 manufacturing facilities in North America, six in Europe and Middle East, six in Asia and
three in Emerging Markets. In addition, it operates 23 leased facilities in North America, one in Europe & Middle East and
four in Asia.

Pratt & Whitney offers its products principally to aircraft manufacturers, airlines and other aircraft operators. It also offers
these products to space launch vehicle providers, the US and foreign governments, as well as aircraft leasing companies.
At December 31, 2009, the company had a business backlog of US$22,614 million, which include US$4,577 million of US
government-funded contracts and subcontracts.

Majority of the company’s sales are made directly to the end customer while services of independent distributors and
foreign sales representatives are utilized to a limited extent. During the fiscal year 2009, sales to the US government
accounted for 31% of the company’s total revenues. Airbus accounted for 11% of its total revenues during the review
period. During the fiscal year 2009, Pratt & Whitney’s international operations, including US exports, accounted for 51% of
the company’s total revenues.

Recently, Pratt & Whitney Rocketdyne was awarded a contract worth US$622,000 by NASA to evaluate heavy-lift launch
vehicle system concepts and propulsion technologies for their affordability and sustainability.

The company’s Global Material Solution (GMS) life limited parts received approval for Validation of Supplemental Type
Certificate (VSTC) from the Civil Aviation Administration of China (CAAC). Pratt & Whitney also received a contract for
US$46 million from the Egyptian Air Force to provide F100-PW-229 Enhanced Engine Package (EEP) engines for its new
fleet of 20 F-16 aircraft.

In October 2010, Pratt & Whitney Rocketdyne received NASA’s 2010 Large Business Prime Contractor of the Year
Award. It also received US$60.3 million contract for continued support of NASA’s Space Shuttle Main Engine (SSME) pre-
launch, launch and post-launch through March 31, 2011. Earlier in June 2010, South Florida Manufacturers Association
(SFMA) named Pratt & Whitney Rocketdyne South Florida's 2009 'Manufacturer of the Year'.


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Pratt & Whitney


In July 2010, Pratt & Whitney entered into a joint venture with 
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