Mission accomplished. That was the gist of Thursday's announcement out of United Technologies (NYSE:UTX), which says it has completed production to install F117 engine deliveries for the U.S. Air Force, marking more than 20 years of "successfully powering the C-17 Globemaster III aircraft."
With all the engines it's been contracted to build for new transport aircraft already built, UTC will now shift its efforts to building only "spare F117 engines" to replace those that wear out on USAF's Globemasters, and also additional F117s to equip any Globemasters that Boeing -- which builds the plane -- manages to sell to customers abroad. In that regard, UTC notes that India has, for example, placed an order for 10 C-17s for its Air Force.
Result: The F117 program, and the revenues UTC derives from it, shifted into lower gear today. Barring big new buys of Boeing planes from abroad, or renewed purchases here at home, UTC and its investors should expect this program to now embark upon a long process of winding down.
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