Collins Aerospace to Lead Three-Way Split of United Technologies

by Richard Pettibone, Aerospace & Defense Companies Analyst, Forecast International.

Having long been a conglomerate, UTC has decided that its operations would be better off as three independent companies.  With the completion of its $30 billion acquisition of Rockwell Collins, the company has announced plans to split into three operations: aerospace, including Pratt & Whitney and the new Collins Aerospace Systems; Otis Elevator; and UTC Climate, Controls & Security, which will operate under the Carrier name. The purchase price implies a total equity value of $23 billion and a total transaction value of $30 billion, including Rockwell Collins’ net debt.

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Airbus and Boeing to Tout New Tie-ups as Farnborough Begins

By Ray Jaworowski, Senior Aerospace AnalystForecast International.

As usual, the order contest between Airbus and Boeing will take center stage at this year’s Farnborough International Airshow in the U.K.  Through the end of June 2018, orders for the two giant manufacturers were somewhat ahead of the pace set in the first six months of 2017.  With few or no signs evident of an immediate sales slowdown, the stage is set for another big order haul at the show for Airbus and Boeing.  It should be kept in mind, though, that the Farnborough show tends to generate a lower number of order announcements than does the rival Paris Air Show. Continue reading

Military Increases ADS-B Out Upgrades

by Matthew Beres, Airborne Retrofit & Modernization Analyst, Forecast International.

Boeing C-17 heavy lift transport aircraft (Source: Boeing)

Raytheon was recently awarded a $30 million ceiling increase modification to a previously awarded contract for T-38A/B, C-17, C-5, and A-10 Automatic Surveillance – Broadcast (ADS-B Out) upgrades. Continue reading

It’s Official, UTC Buying Rockwell Collins in $30 Billion Deal

by Richard Pettibone, Aerospace & Defense Companies Analyst, Forecast International.

 

After a summer of speculation, United Technologies Corp (UTC) and Rockwell Collins announced that they have reached a definitive agreement under which UTC will acquire Rockwell Collins in a cash and stock transaction valued at $30 billion. Continue reading

UTC Aerospace Systems Even More Formidable With Rockwell Collins

by Richard Pettibone, Aerospace & Defense Companies Analyst, Forecast International.

Rockwell Collins MFD-268C4 Displays in a UH-60M helicopter

While new aircraft orders have slowed lately, the production of commercial aircraft is exceptionally vibrant.  Airbus and Boeing are maintaining tremendous backlogs, and both manufacturers are ramping up production of their new fuel-efficient aircraft designs.  This robust market is one that UTC Aerospace Systems is especially well positioned to capture.  The combined entity offers a vast amount of product content – one-stop shopping – for commercial aircraft primes.  The combination should also offer economies of scale, making product costs lower and even more attractive. Continue reading

Rockwell Expands and Diversifies with B/E Aerospace Buy

by Richard Pettibone, Aerospace & Defense Companies Analyst, Forecast International.

An employee from Rockwell Collins’ new Interior Systems business building airline cabin seats at its Winston-Salem, North Carolina-based facility. Source: Rockwell Collins

With commercial aviation production continuing apace, Rockwell Collins decided it wanted a bigger slice of the pie and expanded its operations with the $8.3 billion purchase of cabin interiors specialist B/E Aerospace.   As a result, Rockwell is now an $8 billion company, employing some 30,000 people and commanding a diverse content base on a variety of commercial and business aircraft.        Continue reading

With Rockwell Collins in the Mix, Can Brazilian Firms Penetrate the International Airborne Defense Electronics Market?

by C. Zachary Hofer, Electronic Systems Analyst, Forecast International.

Brazilian companies Savis and Bradar announced the signing of a cooperation agreement to evaluate joint business development for defense applications at the LAAD Defense & Security 2017 conference.  Both companies are affiliated with Embraer Defense & Security and U.S.-based flight deck specialist Rockwell Collins. Continue reading