GE Aviation enters fast-growing industry segment
General Electric's aviation unit said Thursday it bought a Czech company that will help it make inroads into the fast-growing market for small twin-engine turboprop aircraft.
By Agencies |
HARTFORD: General Electric's aviation unit said Thursday it bought a Czech company that will help it make inroads into the fast-growing market for small twin-engine turboprop aircraft.
GE Aviation said it purchased Walter Engines, a manufacturer of small turboprop engines and machined parts for the aviation industry.
Cincinnati-based GE Aviation did not disclose terms of the deal, but spokeswoman Deborah Case said it was less than $70 million.
Walter Engines, based in the Czech Republic, has made aircraft engines since 1923. It reported revenue of $28 million in 2007, GE Aviation said.
GE Aviation, a business of Fairfield-based General Electric Co., makes commercial and military jet engines, components and mechanical systems for aircraft.
Case said GE Aviation intends to compete against Pratt & Whitney's PT6 engine.
``It will allow us to compete in a segment we've not competed in before,'' she said. ``We know they definitely have a big presence in the market and this opportunity with Walter allows us to enter that.
``Whatever win we can get from the market is a win. It's more than we have now,'' she said.
Pratt & Whitney Canada, a Longueuil, Quebec-based subsidiary of United Technologies Corp., has produced PT6 engines since 1963.
``We take all competition very seriously,'' said Nancy German, spokeswoman for Pratt & Whitney Canada.
Analyst Paul Nisbet at JSA Research Inc. in Newport, Rhode Island, said GE can put a lot of muscle behind its new business. However, Walter Engines is a fraction of the size of Pratt & Whitney Canada, which Nisbet said is estimated to post $3.4 billion in sales this year.
``I don't see where there's much competition from someone 1 percent the size of Pratt & Whitney Canada,'' he said.
Skyrocketing fuel prices are hurting the airline industry, but ``that's not stopping airlines from ordering planes,'' Nisbet said.
Business jets, regional jets and helicopters all use engines produced by Pratt & Whitney Canada, he said. ``It's a very strong business,'' he said.
GE Aviation said it purchased Walter Engines, a manufacturer of small turboprop engines and machined parts for the aviation industry.
Cincinnati-based GE Aviation did not disclose terms of the deal, but spokeswoman Deborah Case said it was less than $70 million.
Walter Engines, based in the Czech Republic, has made aircraft engines since 1923. It reported revenue of $28 million in 2007, GE Aviation said.
GE Aviation, a business of Fairfield-based General Electric Co., makes commercial and military jet engines, components and mechanical systems for aircraft.
Case said GE Aviation intends to compete against Pratt & Whitney's PT6 engine.
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``It will allow us to compete in a segment we've not competed in before,'' she said. ``We know they definitely have a big presence in the market and this opportunity with Walter allows us to enter that.
``Whatever win we can get from the market is a win. It's more than we have now,'' she said.
Pratt & Whitney Canada, a Longueuil, Quebec-based subsidiary of United Technologies Corp., has produced PT6 engines since 1963.
``We take all competition very seriously,'' said Nancy German, spokeswoman for Pratt & Whitney Canada.
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Analyst Paul Nisbet at JSA Research Inc. in Newport, Rhode Island, said GE can put a lot of muscle behind its new business. However, Walter Engines is a fraction of the size of Pratt & Whitney Canada, which Nisbet said is estimated to post $3.4 billion in sales this year.
``I don't see where there's much competition from someone 1 percent the size of Pratt & Whitney Canada,'' he said.
ADVERTISEMENT
Skyrocketing fuel prices are hurting the airline industry, but ``that's not stopping airlines from ordering planes,'' Nisbet said.
Business jets, regional jets and helicopters all use engines produced by Pratt & Whitney Canada, he said. ``It's a very strong business,'' he said.
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