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AlliedSignal to Provide Part for New Boeing Jet : Aerospace: The company’s Torrance division will manufacture auxiliary power units for the 737-X under a $2-billion, 20-year contract.

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From Bloomberg Business News

AlliedSignal Inc. will provide auxiliary power units for Boeing Co.’s next-generation 737 jetliner, a contract the aerospace concern valued at $2 billion over 20 years.

AlliedSignal’s Torrance-based aerospace unit edged out Auxiliary Power International of San Diego, a Sundstrand Corp. subsidiary, for the contract.

Boeing, the world’s leading civilian aircraft manufacturer, expects to make about 2,000 of the airplanes, called the 737-X, with the first delivery set for October, 1997, to Southwest Airlines. Boeing said it has 63 firm orders for the plane, all from Southwest.

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The auxiliary power unit, called the 131-9(B), supplies pneumatic power for cabin air conditioning and main engine ignition. It also provides electrical power.

Cai Von Rumohr, aerospace analyst at Cowen & Co. in Boston, said he had expected AlliedSignal, the world’s leading APU manufacturer, to receive the contract.

“This is nothing that’s going to hit (the bottom line) this year or next, but (it) will when the market starts to turn around in 1996 or 1997,” he said.

Shares of AlliedSignal rose 62.5 cents to $35.375 on Thursday on the New York Stock Exchange.

AlliedSignal also supplies auxiliary power units for the Boeing 777, the Airbus A330/340 and the McDonnell Douglas MD-90.

In addition to auxiliary power units, the AlliedSignal Engines unit designs and makes turbofan and turboprop engines.

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