Pratt & Whitney and Rolls-Royce Close on Deal for Program Share in IAE
ZURICH, June 29, 2012 /PRNewswire/ -- Pratt & Whitney, a United Technologies Corp. (NYSE: UTX) company, closed today on its agreement to purchase Rolls-Royce's program share in IAE International Aero Engines ("IAE"). More information about the closing will be announced by IAE at the Farnborough Air Show on July 9.
"This strategic deal strengthens the presence of Pratt & Whitney and the IAE shareholders now and well into the future," Pratt & Whitney President David Hess said. "Rolls-Royce will continue to support IAE as a strategic supplier for the V2500 engine and continue to perform its key responsibilities for IAE, including the manufacture of parts and engines."
IAE is a multinational aero engine consortium whose shareholders now consist of Pratt & Whitney, Pratt & Whitney Aero Engines International GmbH, Japanese Aero Engines Corporation (JAEC) and MTU Aero Engines GmbH (MTU). To date, over 5,000 V2500 engines have been delivered and nearly 2,000 more engines are on order with close to 200 customers around the world.
As well as restructuring participation in IAE, on October 12, 2011, Pratt & Whitney and Rolls-Royce also announced the formation of a new collaboration to power future mid-size aircraft, which is subject to separate regulatory approvals. IAE partners JAEC and MTU have also agreed to join this new venture. This collaboration will draw on the most advanced technology from these world-class companies to drive enhanced performance for this fast growing segment in which worldwide demand for around 20,000 new aircraft (or nearly 45,000 engines) is predicted over the next twenty years.
Pratt & Whitney is a world leader in the design, manufacture and service of aircraft engines, space propulsion systems and industrial gas turbines. United Technologies, based in Hartford, Conn., is a diversified company providing high technology products and services to the global aerospace and commercial building industries.
This release includes "forward looking statements" concerning future business opportunities and other matters involving this engine that are subject to risks and uncertainties. Important factors that could cause actual results to differ materially from those anticipated or implied in forward looking statements include weakness in global economic conditions and in end-market demand for new aircraft, including the aircraft discussed in this press release; as well as company-specific items including the ability to achieve innovative designs and product performance benefits at planned levels and within the anticipated time frames; challenges in the design, development, production and support of advanced technologies and new products including the engine discussed in this press release; and delays and disruption in delivery of materials and services from suppliers. For information identifying other important economic, political, regulatory, legal, technological, competitive and other uncertainties, see UTC's SEC filings as submitted from time to time, including but not limited to, the information included in UTC's 10-K and 10-Q Reports under the headings "Business," "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Cautionary Note Concerning Factors that May Affect Future Results," as well as the information included in UTC's Current Reports on Form 8-K.
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