UPDATE: United Tech shares turn lower on new report of problem with Pratt & Whitney engines
Shares of United Technologies Corp. (UTX) moved lower in late trading Friday, after The Wall Street Journal said Airbus has a problem with an engine made for its A320neo aircraft by United Tech business Pratt & Whitney. Pratt & Whitney's engine margins have come under pressure in the last year because of production and mechanical problems with the geared-turbofan engine, which is a new-generation of jet engine. Pratt & Whitney issued a short release to say it is in close contact with clients to address the recent finding, which relates to the knife edge seal in the high pressure compressor aft hub on the engine. "This issue is isolated to a limited subpopulation of engines," said the release. United Tech shares reversed early gains to trade down 3.3%. The stock has gained 12% in the last 12 months, while the Dow Jones Industrial Average has gained 18% and the S&P 500 has gained 12%.
-Ciara Linnane; 415-439-6400; AskNewswires@dowjones.com
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