Pratt Faces Hit From Fighter Cutback

Hartford Concurant ^ | 1/16/2011 | Mara Lee

[ErnstStavroBlofeld]

The Pentagon's declaration this month that it intends to cut back on purchases of Joint Strike Fighters could mean nearly $2 billion in lost engine sales in the next five years for Pratt & Whitney, which is counting on the next-generation aircraft to support its Connecticut factories.

That figure is the estimate of an analyst who is an expert on the aerospace industry and its defense programs.

Pratt President David Hess downplayed the U.S. defense secretary's announcement that purchases would be cut by 28 percent, which includes 13 fewer of the F-35 fighters in the fiscal year that starts Oct. 1.

"Overall, we may see the ramp-up to be a little slower than anticipated," Hess said in a press conference after the announcement. "It's still a growth program for Pratt and a growth generator for the company for decades to come."

But at stake is far more than just a delay in revenue. Congress has continued to fund an alternate engine for the fighter built by General Electric and Rolls Royce, despite three years of Pentagon and White House protests. So, the longer the fighter takes to move into full production, the more time GE has to catch up with Pratt.

[GailA]

More job losses.