July 09, 2012
Hamilton Sundstrand is “anxiously awaiting” completion of the Goodrich acquisition sometime this summer, says President Mike Dumais.
“For [parent company] UTC it will be transformational,” Dumais says. “Meanwhile, we are staying focused.”
The $18.4 billion acquisition, when finalized, will be incorporated into a new UTC Propulsion and Aerospace Div. that encompasses Pratt & Whitney, Hamilton Sundstrand, and Goodrich. With revenues of $26.5 billion, the division will become the industry’s largest aerospace supplier, with dozens of aircraft systems — from engines, landing gear, wheels and brakes to aerostructures, electronics and interiors.
The businesses at Goodrich and Hamilton Sundstrand are highly complementary, with very little overlap, Dumais says. While he can offer few details before regulators approve the deal, he notes UTC will continue to provide systems to all OEMs and there will be no closed-system approach.
The combination will allow development of new products. While he would not be specific, Dumais suggests as one example that Hamilton Sundstrand’s motor drive technology could be applied across a range of Goodrich’s components, or Goodrich’s sensor technologies could be leveraged into Hamilton Sundstrand’s air management systems.
Dumais says the Goodrich acquisition cannot be allowed to distract Hamilton Sundstrand from executing on its current and booked business, which is ramping up as programs such as the Boeing 787 and Lockheed Martin F-35 Joint Strike Fighter increase their production rates. “We have a $60 billion OEM backlog today to enter service over the next five years,” he says, “so we should see broad revenue growth based on that backlog.”
Dumais professes to be “very optimistic” on the commercial business, which makes up 70% of Hamilton Sundstrand’s revenues. “Commercial aviation will still grow faster than world gross domestic product, and Hamilton Sundstrand will grow faster than aerospace in general because of all the contracts we’ve won over the last 5-10 years.
“Typically we’ve won more content on new aircraft than we had on the ones they’re replacing. So we see significant growth in the long term,” he adds.
Even in defense, Dumais sees long-term expansion. “We’re on many of the most attractive programs,” such as the F-35, P-8 Poseidon and A400M transport. There are even retrofit opportunities, such as putting more efficient propellers on C-130s.