Commercial engine spares rebounded after a five-quarter slump to boost Pratt & Whitney's second quarter earnings report.
Spare revenues grew 15% organically compared to the second quarter last year and included all three major P&W commercial engines - the PW2000, PW4000 and V2500, says parent United Technologies chief financial officer Greg Hayes.
"We started to see orders pick up April and May and I think it just accelerated into June," Hayes said, speaking on a teleconference call with market analysts. "One month or one quarter does not make a trend, but we feel pretty good about the back half of the year."
The slump in the spares business had troubled analysts and P&W executives alike, as airlines either deferred or found alternatives for required spare purchases to replace life-limited parts.
"As these planes keep flying, they need parts," Hayes says.
The second quarter rebound was led by orders for PW2000 spares, followed by nearly 15% year over year increases for PW4000s and V2500s.
P&W sales in the second quarter improved by 5.1% year on year, while first half revenues are up 8.1%. Operating margins also showed a second quarter improvement of 3.2 percentage points.