United Technologies Corporation (UTX) provides high technology products and services to building systems and aerospace industries worldwide.
Recent results of 2013:
Net sales grew 8.5% to $62.6 billion compared to $57.7 billion last year.
Gross margin grew 11% to $17 billion compared to $15.5 billion last year.
Net income grew 11.5% to $5.7 billion compared to $5.1 billion last year.
The Company Operates Five Segments:
Otis:
Otis is the world's largest elevator and escalator manufacturing, installation and service company. The Otis segment provided approximately 20% of 2013 total net revenues. The sales were $12,484 million compared to $12,056 million last year. The increase was primarily from the higher new equipment sales in China and the U.S.
Future Demand of Elevator and Escalators:
Economic conditions remained favorable for Otis with strong new equipment order growth rates in China and the U.S. Going forward, the company is expecting solid growth from these countries in 2014 as the future outlook of the construction industry remains positive. Research indicates that global demand for elevator, escalator and moving walkway equipment and services will grow 5.6% to $111 billion in 2017. Moreover, by 2025 approximately 350 million Chinese are expected to move to cities from rural areas and that will create the need for more commercial buildings and residential apartments that will ultimately lead to higher demand for elevators in the big cities of China. As a leading player in China, Otis will have more revenues from China in the future and this will strengthen the company's position.
UTC Climate, Controls & Security:
UTC is a leading provider of HVAC and refrigeration solutions including controls for residential, commercial, industrial and transportation applications. UTC is also one of the leading providers of security and fire safety products and services. The UTC climate segment provided 27% of 2013 total net sales.
