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P&W's Q2 profit jumps even as large jet engine shipments slow

Pratt & Whitney's second quarter operating profit jumped 7% year-on-year to $424 million amid continued cost reduction and an increase in engine shipments.

The engine maker shipped 824 aircraft engines in the period, up from 745 engines the same period of 2018, says P&W parent United Technologies (UTC).

Though its shipments of turboprops and military engines increased year-on-year, P&W shipped fewer large commercial aircraft engines in the second quarter.

It handed over 173 of those engines in the period, down from 210 one year earlier, UTC says.

P&W's large commercial engines include PW1000G geared turbofans, PW2000s, PW4000s and International Aero Engines V2500s, though it does not break out shipments by engine type. The company has recently been ramping up PW1000G deliveries amid surging production of new aircraft like the A320neo-family aircraft.

P&W generated $5.2 billion in second quarter revenue, up 9% year-on-year. Its sales of commercial engines jumped 22%, while commercial aftermarket sales inched up just 2% year-on-year.

That anemic aftermarket sales growth reflects "unfavourable contract re-estimates related to PW4000 engines", says UTC.

P&W's military sales surged 15% year-on-year in the second quarter due largely to the Lockheed Martin F-35 programme. P&W makes that aircraft's F135 engine.

"The Pratt team continues to execute on the GFT cost-reduction initiatives and, importantly, are meeting the customer delivery requirements," UTC chief executive Gregory Hayes says during UTC's earnings call on 23 July.

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