Wed, Jan. 28, 3:49 PM
- The U.S. Air Force says it has selected Boeing's (BA +5.7%) commercial 747-8 airliner to replace its current fleet of Air Force One presidential aircraft.
- Boeing has not secured a contract, but the Pentagon says it likely would win deals for the aircraft and modifications that include sophisticated communications equipment and antimissile devices.
- The Sikorsky unit of United Technologies (UTX -1.7%) and Lockheed Martin (LMT -0.5%) win a $1.24B contract to build the first six of a planned fleet of 23 helicopters for the Marine Corps to transport the president, vice president, cabinet members and other dignitaries.
Mon, Jan. 26, 6:38 PM
- The story of Q4 at United Technologies (NYSE:UTX) "really is one word, and that’s ‘currency,’” CEO Greg Hayes says in the earnings conference call, as the company - which derives 62% of sales from outside the U.S. - is hurt by the strengthening dollar once those sales are translated back into the U.S. currency.
- UTX had projected a 6% decline in the value of the euro vs. the dollar when it briefed investors Dec. 10, but the euro has fallen another 12% since then, Hayes said, whacking $0.24 off anticipated FY 2015 EPS.
- To offset some of the currency impact, Hayes says UTX will costs and raise its planned share buyback for the year from $2B to $3B.
- UTX executives said nothing had changed in the company's fundamental outlook, backing its forecast for 3%-5% in organic sales growth for the year.
- UTX -2.1% AH.
Mon, Jan. 26, 4:51 PM
- United Technologies (NYSE:UTX) -2.3% AH after Q4 earnings met expectations but it cut its FY 2015 outlook due to negative impacts from the stronger dollar.
- UTX says it sees 2015 EPS of $6.85-$7.05 per share, down from its prior range of $7.00-$7.20 and below analyst consensus of $7.19, and FY 2015 revenues of $65B-$66B vs. $66.9B consensus.
- In Q4, UTX says new equipment orders at its Otis elevator business rose 12% Y/Y, excluding foreign exchange fluctuations, but sales at aerospace subsidiary Pratt & Whitney fell 6%.
- Equipment orders at UTC Climate, Controls & Security gained 11%; commercial aftermarket sales rose 5% for UTC Aerospace Systems.
Mon, Jan. 26, 4:11 PM| Comment!
Mon, Jan. 26, 10:21 AM| Comment!
Tue, Jan. 20, 6:33 PM
- United Technologies (NYSE:UTX) will bring back David Hess, the former president of its Pratt & Whitney jet engine business, in the second major management change in the aerospace division this month.
- Hess will take on a new role as senior VP for aerospace business development and will report to CEO Greg Hayes, who is reshuffling his top aerospace executives ahead of a major production ramp up of UTX's new geared turbofan jet engine.
- Last week, UTX said Alain Bellemare, who had overseen both the Pratt and UTC Aerospace Systems businesses, would leave the company and that his position would be eliminated in favor of more direct lines of oversight between the CEO and the individual business units.
Thu, Jan. 15, 10:35 PM
- United Technologies (NYSE:UTX) says the head of its aerospace division, Alain Bellamare, is leaving the company at the end of this month, less than two months after the abrupt departure of its CEO.
- As part of a restructuring of its aerospace organization, UTX will eliminate the leadership position at its Propulsion and Aerospace Systems Division, and the leaders of UTC Aerospace Systems and Pratt & Whitney now will report directly to new CEO Greg Hayes.
- The changes will eliminate a management layer between Hayes and the executives that run the businesses that produced roughly 44% of UTX’s $63B in sales during 2013; Hayes wants to continue the hands-on approach over the company operations he had as CFO.
Thu, Jan. 15, 10:52 AM
- Other firms are likely to feel a pinch after Bombardier ((OTCPK:BDRAF -18%),(OTCQX:BDRBF -20.8%)) announced it's pausing its Learjet 85 program.
- Rockwell Collins (COL +0.7%) supplies the Learjet 85's avionics, Pratt & Whitney (UTX +0.7%) Canada provides the jet's engines, while LMI Aerospace (LMIA -0.2%) takes part in the plane's engineering.
Dec. 30, 2014, 7:30 AM
- Embarking on a $41B program to modernize its armed forces by 2022, Poland has received several bids in a $3B military helicopter tender, and expects to sign a final deal in the second half of 2015.
- Sikorsky Aircraft (NYSE:UTX), Airbus (OTCPK:EADSY) and AgustaWestland, a unit of Italy's Finmeccanica (OTCPK:FINMY), are among the bidders.
- Poland is aiming to increase defense spending, currently at 1.95% of its GDP, to NATO's 2% target in 2016.
Dec. 12, 2014, 3:35 PM
- New United Technologies (UTX -1.1%) CEO Greg Hayes said at its analyst day yesterday the company would not offer an engine for widebody planes anytime soon, noting UTX "cannot continue to afford to invest at these levels... We had $1.1B of R&D at Pratt, $800M at Aerospace Systems. That’s not sustainable for us at that level. It’s got to come down closer to 4% or 5% of sales."
- At 4% or 5% of sales and based on 2013 revenues of $14.5B, Pratt & Whitney R&D would drop to $580M-$725M, 24/7's Paul Ausick calculates, leading him to wonder if UTX is "giving up on building new jet engines."
- UTX's Pratt & Whitney unit is offering its new geared turbofan engine for smaller commercial airplanes, such as Airbus' popular A320neo narrowbody jet, and some industry watchers have wondered if Pratt would seek to scale it up for larger planes.
Dec. 11, 2014, 5:34 PM
- United Technologies (NYSE:UTX) -0.9% AH after it forecasts 2015 earnings and revenues to come in below market expectations, as it eyes slightly lower sales at its Pratt & Whitney military and commercial original equipment business.
- UTX says in an investor presentation that it expects FY 2015 EPS of $7.00-$7.20 on revenues of $66B-$67B, while analyst consensus had seen EPS of $7.27B on $67.5B in revenues.
- Also sees 2014 EPS of $6.80, at the mid-point of the previous earnings outlook of $6.75-$6.85, and reaffirms revenue guidance of ~$65B.
- Separately, new CEO Greg Hayes tells WSJ he is hunting for a major acquisition and is willing to consider changes to a UTX portfolio that includes Otis elevators, Black Hawk helicopters and Carrier air conditioning systems.
Dec. 10, 2014, 7:18 AM
- The $1.1T spending bill agreed to last night by lawmakers from the U.S. House and Senate provides $554.2B in funding for the U.S. military in fiscal 2015, including $1.46B for 15 EA-18G electronic attack jets built by Boeing (NYSE:BA).
- The measure also includes $479M for a total of four extra Lockheed Martin (NYSE:LMT) F-35s for the U.S. Air Force and Navy.
- $341M in additional funding was also added to the measure for upgrades of up to 12 AH-64 Apache helicopters built by Boeing, and 9 Black Hawk helicopters built by Sikorsky Aircraft (NYSE:UTX).
Dec. 9, 2014, 7:26 AM| Comment!
Dec. 8, 2014, 2:26 PM
- United Technologies (UTX +1.7%) unit Pratt & Whitney Canada says it will invest more than C$1B ($874M) over four and a half years to develop new high-performance plane engines.
- UTX says the C$1B in R&D spending includes C$300M from Canada's federal government, which is repayable.
- The investment will support close to 1,500 jobs in Quebec and Ontario over the next five years, according to the government.
- Bernstein upgrades shares to Outperform from Market Perform ahead of the news.
Dec. 8, 2014, 2:39 AM
- United Technologies' (NYSE:UTX) new chairman, Edward Kangas, says former CEO Louis Chenevert stepped down late last month after Kangas spoke to him out of concern about his priorities.
- "It was just a growing issue and concern which caused me, with counsel from the board, to discuss with Louis his priorities - personal and business," says Kangas. "After consideration, Louis concluded that the company was in a good place...and it was a good time for him to retire."
- A reason for the resignation was not given at the time of Chenevert's departure.
- Previously: United Technology CEO steps down (Nov. 24 2014)
Dec. 7, 2014, 4:41 AM
- India will buy 16 of Sikorsky Aircraft's (NYSE:UTX) S-70B Sea Hawk helicopters, under a $1B deal that was expected since September.
- The U.S. manufacturer will supply the S-70B Seahawk multi-role helicopters to the Indian Navy. The contract also includes an option for eight additional helicopters.
- Previously: Reuters: India eyes $1B Sikorsky helicopter deal, other U.S. arms (Sep. 25 2014)
UTX vs. ETF Alternatives
United Technologies Corporation provides high technology products and services to the building systems and aerospace industries worldwide. Its segments are Otis, UTC Climate, Controls & Security, Pratt & Whitney, UTC Aerospace Systems, and Sikorsky.
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