United Technologies Corporation
United Technologies Corporation was incorporated in Delaware in 1934. UTC provides high technology products and services to the building systems and aerospace industries worldwide. Growth is attributable primarily to the internal development of existing businesses and to acquisitions.
By focusing on core aerospace and building systems businesses, investing in game-changing technologies and continuing to expand our presence in emerging markets, UTC is positioned to capitalize on two megatrends that are shaping modern life — mass urbanization and rapid growth in commercial aviation.
Across emerging markets, tens of millions of people a year are migrating to urban centers, leading to enormous growth in the commercial building industry. As the world urbanizes, increased air travel follows. According to industry estimates, airlines will add 30,000 new commercial aircraft over the next 20 years to replace aging fleets with more fuel-efficient planes and expand capacity across Asia.
Pratt & Whitney is among the world’s leading suppliers of aircraft engines for the commercial, military, business jet and general aviation markets. Pratt & Whitney provides fleet management services and aftermarket maintenance, repair and overhaul services. Pratt & Whitney produces and develops families of large engines for wide- and narrow-body and large regional aircraft in the commercial market and for fighter, bomber, tanker and transport aircraft in the military market. Pratt & Whitney Canada (P&WC) is among the world's leading suppliers of engines powering general and business aviation, as well as regional airline, utility and military airplanes, and helicopters. Pratt & Whitney and P&WC also produce, sell and service auxiliary power units for commercial and military aircraft.
The development of new engines and improvements to current production engines present important growth opportunities. In view of the risks and costs associated with developing new engines, Pratt & Whitney has entered into collaboration arrangements in which revenues, costs and risks are shared with third parties. At December 31, 2017, the interests of third-party participants in Pratt & Whitney-directed commercial jet engine programs ranged from approximately 14 percent to 50 percent. UTC holds a 61 percent interest in the IAE International Aero Engines AG (IAE) collaboration with MTU Aero Engines AG (MTU) and Japanese Aero Engines Corporation (JAEC). Pratt & Whitney also holds a 59 percent program share interest in the International Aero Engines, LLC (IAE LLC) collaboration with MTU and JAEC. IAE LLC sells the PW1100G-JM engine for the Airbus A320neo aircraft and the PW1400G-JM engine for the Irkut MC-21 aircraft. In addition, Pratt & Whitney has interests in other engine programs, including a 50 percent ownership interest in the Engine Alliance (EA), a joint venture with GE Aviation, which markets and manufactures the GP7000 engine for the Airbus A380 aircraft.
To grow, a company needs to develop great products. UTC is focused on research and development investments on products that address local market needs, deliver value to customers and lead to revenue growth. Recent examples include Carrier Transicold’s launch of the Citimax™ line of small truck refrigeration units for the market in India. In 2013, Otis introduced the Gen2® Switch elevator, which uses 81 percent less power than traditional systems and is capable of operating on battery, solar or wind power — ideal for areas with frequent power outages.
UTC is using innovative technologies to design and build the next generation of jet engines and aerospace systems, including additive manufacturing to produce complex, precision engine components. Pratt & Whitney’s PurePower® engine with Geared Turbofan technology is transforming the industry with significant reductions in fuel burn, emissions and noise. UTC is also leaders in the development of advanced new composites — stronger and lighter weight than conventional materials — for use in a broad range of components, including nacelles, drive shafts, wheels and brakes, and fuel lines.
UTC Building & Industrial Systems, comprised of the financial reporting segments of Otis and UTC Climate, Controls & Security, is the world’s largest provider of building technologies. Its elevator, escalator, fire-safety, security, building automations, heating, ventilating, air-condition and refrigeration systems and services promote integrated, high-performance buildings that are safer, smarter and sustainable. Pratt & Whitney, UTC Aerospace Systems, and Sikorsky (collectively referred to as the “aerospace businesses”) primarily serve commercial and government customers in both the original equipment and aftermarket parts and services markets of the aerospace industry. Pratt & Whitney also provides products to certain industrial markets.
In January 2015, UTC announced that it is streamlining its aerospace operations by eliminating the UTC Propulsion & Aerospace Systems organization, which had consisted of the Pratt & Whitney and UTC Aerospace Systems segments. Pratt & Whitney and UTC Aerospace Systems will continue as stand-alone businesses. For 2014, commercial and industrial sales (generated principally by UTC Building & Industrial Systems businesses) were approximately 45 percent of consolidated sales, and commercial aerospace sales and military aerospace sales (generated exclusively by our aerospace businesses) were approximately 35 percent and 20 percent, respectively, of consolidated sales.
On March 11, 2015 United Technologies Corp. announced that its Board of Directors had authorized a review of strategic alternatives for the corporation's Sikorsky Aircraft business, including a potential tax-free spinoff. "Today, Sikorsky is a world leader in the design, manufacture and service of military and commercial helicopter platforms. It has unmatched technological capabilities, outstanding people and a strong backlog," added Hayes. "Looking to the future, we are evaluating whether Sikorsky's unique business as a rotorcraft OEM with a predominately military customer base is best positioned as a stand-alone company, and whether a separation would allow United Technologies to better focus on providing high-technology systems and services to the aerospace and building industries."
On June 15, 2015 United Technologies Corp. announced that it will pursue the separation of the Sikorsky Aircraft business from United Technologies, subject to final Board approval. This announcement followed a review of strategic alternatives for Sikorsky announced earlier in the year. A decision on whether Sikorsky would be spun off or sold was expected by the end of the third quarter.
"Our strategic review has confirmed that exiting the helicopter business is the best path forward for United Technologies," said Gregory Hayes, UTC President and Chief Executive Officer. "Sikorsky is the world's premier helicopter company and through a series of strategic wins is well positioned for long-term growth. However, separation of Sikorsky from the portfolio will allow both United Technologies and Sikorsky to better focus on their core businesses. Over the coming weeks, we'll determine whether a spinoff or direct sale is the best way to enhance Sikorsky's long-term success and create the most value for customers and shareholders."
Lockheed Martin announced on 20 June 2015 that it had entered into a definitive agreement to acquire Sikorsky Aircraft for $9.0 billion from United Technologies Corporation. The price would effectively reduced to approximately $7.1 billion, after taking into account tax benefits resulting from the transaction. The acquisition was expected to close by late fourth quarter 2015 or early first quarter 2016.On 04 September 2017 United Technologies Corp. (NYSE: UTX) ("UTC") and Rockwell Collins, Inc. (NYSE: COL) ("Rockwell Collins") announced that they had reached a definitive agreement under which United Technologies will acquire Rockwell Collins for $140.00 per share, in cash and UTC stock. UTC expected to fund the cash portion of the transaction consideration through debt issuances and cash on hand, and the company is committed to taking actions to maintain strong investment grade credit ratings. The transaction is projected to close by the third quarter of 2018, subject to approval by Rockwell Collins' shareowners, as well as other customary closing conditions, including the receipt of required regulatory approvals. The purchase price implies a total equity value of $23 billion and a total transaction value of $30 billion, including Rockwell Collins' net debt.
The US Department of Justice on 01 October 2018 said it had reached an agreement to allow United Technologies Corp. to buy Iowa-based aviation systems maker Rockwell Collins for $30 billion once the Farmington-based conglomerate made certain divestitures. DOJ determined that without the selloffs, the deal would substantially curb competition for pneumatic deicing systems for aircraft wings and actuators. UTC said it would comply with DOJ's request.
Upon completion of the transaction, Rockwell Collins and UTC Aerospace Systems would be integrated to create a new business unit named Collins Aerospace Systems. Kelly Ortberg assumed the role of Chief Executive Officer with Dave Gitlin serving as President and Chief Operating Officer.
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