New Engine Man

EXECUTIVES New Engine Man Just a month ago, Harry J. Gray, a senior executive vice president of Litton Industries, got a call from an executive recruiter. Would Gray be interested in becoming president of United Aircraft Corp., the world's biggest maker of jet engines? Indeed he would, but he laid down one condition. United Aircraft Chairman William P. Gwinn would have to get the approval of Tex Thornton, Litton's chairman, for Gray even to negotiate. "After 17 years as a Litton employee," said Gray, "I didn't want to do anything without its being known from the very beginning."

Last week tall, balding Gray, 51, got the job. It was a surprising choice because United had always developed its top management from within. Gwinn explained that he was 64 and President Arthur Smith was 60--both approaching the "normal" retirement age of 65. (Smith will now become chairman of the executive committee.) Then Gwinn added: "Someone from the outside could broaden our thinking and fuse it."

The Connecticut-based corporation could use a boost. Its profits in this year's first half were $16 million, down $7 million from last year's first half. The trouble lies with United's Pratt & Whitney engines, which accounted for three-quarters of total sales of $2.4 billion last year. Because of the commercial airlines' existing overcapacity, they cut back on new orders this year. The Defense Department also continues to reduce purchases as the Viet Nam War winds down. Moreover, technical problems until recently held up development of a more powerful engine for Boeing's 747, and production of an engine with more thrust for General Dynamics' F-l 11 fighter-bomber is behind schedule.

Though Harry Gray is no aerospace expert, he seems well suited to lead United. A World War II infantry hero (Bronze and Silver Stars), he started his career at Greyhound Movers, then moved in 1954 to Litton. He began by acquiring electronics firms that helped to make Litton into a huge conglomerate, then was in charge of finances and, most recently, ran three groups of subsidiary companies. In the process, Gray won a reputation for coolness and dedication. After he was in a motorcycle crash in 1964, he set up office in his hospital room and directed operations while still flat on his back.

Gray says that he will look for "what we can find within United Aircraft's capabilities that would be applicable to a peacetime economy." One possibility may be greater emphasis on kerosene-fueled generators to help electric utilities meet peak-hour demands for power. Another: newer turbine engines for fast, interurban trains. United Aircraft's main problem is that it is basically a one-product company. Gray, a man of many parts, will probably diversify United so that it depends less on plane engines and more on a range of products.

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