Fri, May 22, 9:20 AM
- The U.S. State Department has approved the sale of 10 Sikorsky (NYSE:UTX) MH-60R Seahawk helicopters to Saudi Arabia for $1.9B, authorizing a sale which had been discussed for years.
- The Saudi government had requested a sale of the helicopters, as well as radars, missiles and other equipment.
- UTX +0.3% premarket
Thu, May 21, 9:30 AM
- Alongside Goldman's list of 50 stocks appearing most as top holdings at hedge funds is its list of the 50 top shorts.
- New additions this quarter: Baxter Intl (NYSE:BAX), UPS, Marriott (NASDAQ:MAR), NextEra (NYSE:NEE), Ford (NYSE:F), National Oilwell Varco (NYSE:NOV), McDonald's (NYSE:MCD), M&T Bank (NYSE:MTB), CenturyLink (NYSE:CTL), Amgen (NASDAQ:AMGN), Pioneer Natural (NYSE:PXD), Duke Energy (NYSE:DUK), Seagate (NASDAQ:STX), AbbVie (NYSE:ABBV), Cisco (NASDAQ:CSCO).
- The full list (in order of $ value of short interest): AT&T (NYSE:T), Disney (NYSE:DIS), IBM, Verizon (NYSE:VZ), Intel (NASDAQ:INTC), Kinder Morgan (NYSE:KMI), Exxon (NYSE:XOM), Pfizer (NYSE:PFE), J&J (NYSE:JNJ), Deere (NYSE:DE), Caterpillar (NYSE:CAT), Exelon (NYSE:EXC), GE, Boeing (NYSE:BA), Halliburton (NYSE:HAL), Fox (NASDAQ:FOXA), Comcast (NASDAQ:CMCSA), UTX, Regeneron (NASDAQ:REGN), Merck (NYSE:MRK), salesforce.com (NYSE:CRM), AbbVie (ABBV), Conoco (NYSE:COP), Wal-Mart (NYSE:WMT), Eli Lilly (NYSE:LLY), Celgene (NASDAQ:CELG), Schlumberger (NYSE:SLB), AutoZone (NYSE:AZO), Wells Fargo (NYSE:WFC), Emerson (NYSE:EMR), McDonald's (MCD), Reynolds (NYSE:RAI), Target (NYSE:TGT), Accenture (NYSE:ACN), Coca-Cola (NYSE:KO).
Wed, May 20, 7:53 AM
- Airbus (OTCPK:EADSY) announces the first flight of its A320neo with engines supplied by CFM International.
- CFM's LEAP-1A engine is sold as an alternative power source for the jet in competition with the Geared Turbofan supplied by Pratt & Whitney (NYSE:UTX). The latter staged its maiden flight on the A320neo in September.
Tue, May 19, 6:51 PM
- United Technologies (NYSE:UTX) is talking to potential buyers for its Sikorsky Aircraft business, WSJ reports, raising the prospect that a spinoff could turn into a sale.
- Boeing (NYSE:BA), Airbus (OTCPK:EADSF, OTCPK:EADSY) and Lockheed Martin (NYSE:LMT) reportedly are among the companies exploring bids or a potential minority stake in the helicopter maker.
- Analysts estimate Sikorsky could fetch ~$10B in a full sale.
Tue, May 19, 4:54 AM
- Taking advantage of the lower borrowing costs in the eurozone, McDonald's (NYSE:MCD) and United Technologies (NYSE:UTX) are now the latest big U.S. companies to issue debt in euros (called "reverse Yankee" bonds), selling €2B and €750M, respectively.
- The total raised by U.S. companies issuing euro-denominated debt so far this year is just over €34B (not including the latest two deals), more than double the previous record of €17B in 2007.
Tue, May 12, 9:42 AM
- Bombardier ((OTCPK:BDRAF), (OTCQX:BDRBF)) is teaming up with Pratt & Whitney (UTX -1.1%) to develop a data management service for its CSeries aircraft.
- The Aircraft Health Management System will facilitate remote troubleshooting and transmit real-time and recorded data from the aircraft.
- Pratt & Whitney's eFAST system will be the infrastructure unit used to perform the data transmissions.
Fri, May 8, 6:28 PM
- GE is awarded a $2B five-year contract to supply helicopter engines to Taiwan's government and support a number of U.S. military services, the Defense Department reports.
- The contract covers work on GE's T700 701D and T700 401C engines used to power Black Hawk helicopters built by Sikorsky Aircraft (NYSE:UTX).
- The DoD also says Honeywell (NYSE:HON), Siemens (OTCPK:SIEGY) and others have been awarded a $1.5B U.S. Army contract for the design, construction and operation of energy savings projects.
Mon, Apr. 27, 3:38 PM
- F-35 engines from United Technologies (UTX -0.3%) are proving so unreliable that U.S. plans to increase production of the fighter jet may be slowed, congressional auditors say.
- Data from flight tests evaluated by the GAO show the reliability of engines from UTX’s Pratt & Whitney unit is "very poor (less than half of what it should be) and has limited” progress for the F-35, the agency said in a report sent to lawmakers this month.
- According to GAO officials, engines on the Marine Corps’ complex version of the F-35, designed for short takeoffs and vertical landings, flew ~47 hours between failures caused by engine design issues instead of the 90 hours planned for this point, while Air Force and Navy model engines flew ~25 hours between failures instead of the 120 hours planned.
- Bennett Croswell, president of Pratt & Whitney Military Engines, says the company was surprised by the report's unusually stern language but that "the engine is reliable."
- The U.S. military plans to spend $391B for a fleet of 2,443 planes from prime contractor Lockheed Martin (LMT -0.8%).
Mon, Apr. 27, 12:18 PM
Fri, Apr. 24, 7:50 AM
- In a regulatory filing, United Tech (NYSE:UTX) discloses it has been subpoenaed by the SEC as part of a formal investigation into alleged violations of anti-bribery laws.
- The subpoenas seek documents related to internal allegations of alleged violations of anti-bribery laws from UTC’s aerospace and commercial businesses, including but not limited to Otis businesses in China.
- SEC Form 10-Q
Tue, Apr. 21, 7:43 AM
- Net profit of $1.43B, or $1.58 per share vs. $1.21B, or $1.32 a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share were $1.51.
- Otis elevator orders fell 7.1%, sales at Pratt & Whitney grew less than 1% to $3.33B, and sales at Sikorsky (which the company has been in talks about selling) fell 6.9% to $1.27B.
- Equipment orders at its UTC Climate, Controls & Security business were about flat at $3.85B.
- United Tech (NYSE:UTX) also affirmed its 2015 sales target of $65B-$66B and EPS guidance of $6.85-$7.05.
- UTX +1.1% premarket
- Q1 results
Tue, Apr. 21, 7:00 AM| Comment!
Mon, Apr. 20, 5:30 PM
Fri, Apr. 17, 5:27 PM
- GE and Honeywell (NYSE:HON) say they will take steps to cushion the impact of a stronger dollar, after GE said foreign currency effects whacked $950M, or four percentage points, off its Q1 sales, while HON also reported a four-point Q1 drag from a stronger dollar and projected that exchange fluctuations would weigh down sales by $1.7B this year.
- GE says it is considering different locations where it can manufacture products or components for businesses, such as its power and healthcare units, and HON has been hedging transactions that its individual foreign subsidiaries make when they import in dollars, and now it is also hedging when the company's foreign sales are translated back into the dollar.
- The impact of currency shifts on U.S. companies will be highlighted further next week with quarterly reports from United Technologies (NYSE:UTX), which already cut its 2015 financial forecast in January over currency worries, as well as from 3M (NYSE:MMM) and Illinois Tool Works (NYSE:ITW).
Sat, Apr. 11, 9:21 AM
- After Friday's 10.8% moonshot, General Electric (NYSE:GE) sells for 16x 2015 estimated earnings, writes Avi Salzman, a pretty rich multiple considering the company's industrial businesses have boosted operating earnings by an average 1.4% annually for the last four years.
- United Technologies (NYSE:UTX) trades at a 16 multiple, but has grown operating earnings by an average 4.9% over that period, and Honeywell (NYSE:HON) sells for 17x after growing earnings by an average 16%.
- "Here’s the problem: The assets they have deployed in the finance unit were generating a lot of earnings,” says a fund manager and longtime GE owner. “As they sell those down, they have to replace them with industrial earnings or share buybacks. There’s going to be a period of time where earnings will be stagnant ... The Street will get bored waiting."
- Previously: GE's move away from finance sets up industrial deals, Immelt says (April 10)
- Previously: GE sets plan to exit almost all of GE Capital; launches $50B buyback (April 10)
Tue, Apr. 7, 9:14 AM
- United Technologies (NYSE:UTX) won its appeal of U.S. government claims that it was overcharged for Pratt & Whitney jet engines, as a U.S. Circuit Judge in Ohio yesterday ruled that the government never proved damages.
- The case was remanded to the trial court that had ordered UTX to pay $657M in damages.
- The Justice Department accused UTX subsidiary Pratt & Whitney of violating the False Claims Act, resulting in alleged overpayments for F100 jet engines during 1985-90.
UTX vs. ETF Alternatives
United Technologies Corporation provides high technology products and services to the building systems and aerospace industries. Its business segments are Otis, UTC Climate, Controls & Security, Pratt & Whitney, UTC Aerospace Systems and Sikorsky.
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