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.
Thu, Apr. 2, 3:42 PM
- United Technologies' (UTX +1.1%) Pratt & Whitney division says it has signed nearly 200 long-term agreements, involving projected spending of more than $18B with key global product suppliers.
- UTX says the agreements will help it support increased production levels as it prepares for an expected doubling in engine production by the end of the decade.
- P&W has an installed base of more than 12K engines, but the number of V2500 and geared turbofan engines on the company’s backlog is even higher; the GTF engine is set for installation on the Bombardier CS100, the A320neo from Airbus and commercial jets from Mitsubishi, Embraer and Irkut.
- Earlier: UTX names Sikorsky president
Thu, Apr. 2, 8:59 AM
- United Technologies (NYSE:UTX) appoints Robert Leduc as President of Sikorsky Aircraft, succeeding Mick Maurer, who will move to the newly created position of UTC Senior Vice President, Strategic Projects.
- "It is a great pleasure to welcome Bob back to United Technologies," said CEO Gregory Hayes.
- Prior to his retirement in 2014, Leduc held numerous senior leadership positions during his 35-year career at UTX.
- Related: United Tech CEO sheds light on possible Sikorsky spinoff (Mar. 12 2015)
Wed, Apr. 1, 3:30 PM
- Actavis (ACT -1%) should outperform following its purchase of Allergan, and FDA action dates for eluxadoline and cariprazine could also be catalysts.
- Though Occidental Petroleum is the team's top pick in energy, Anadarko (APC +1.1%) is the best short-term play on a recovery in oil prices.
- Strong fundamentals and easy year-over-year comps make AvalonBay (AVB -0.9%) a pick in apartment rentals.
- A favorable Supreme Court ruling in King vs. Burwell by the end of June provides plenty of upside possibility with little downside for HCA Holdings (HCA -0.8%).
- Also on the buy list are Ingersoll-Rand (IR -1.5%), Nvidia (NVDA +0.2%), UTX (UTX -1.1%), and Disney (DIS +0.4%).
- Making the underperform list is the Gap (GPS -2.2%) thanks to less room for cost cutting and a forecast for continued weakness in sales. Also a Q2 sell: Tesla (TSLA -1%) " lacks any real technological advantage over its competitors" says the team, seeing a significant Q1 loss, an increase in the already-high cash burn, and a questionable delivery outlook.
- Source: Benzinga
Mon, Mar. 23, 8:17 AM
- United Tech (NYSE:UTX) unit UTC Aerospace Systems has received a contract from the Naval Surface Warfare Center to provide sonar domes for surface combat ships.
- The contract, valued at up to $39M, also includes shipping, installation and transportation fixtures, engineering and field services, inspection and repairs.
Fri, Mar. 13, 7:42 AM
- Following its investor day yesterday, United Technologies (NYSE:UTX) has announced accelerated share buyback agreements with both Goldman Sachs and Morgan Stanley to repurchase an aggregate of $2.65B of common stock.
- The company will make payments of $1.325B to both banks, and will initially receive 9,298,426 shares of its stock from each firm.
- The agreements are part of United Tech's $3B buyback target for 2015.
- SEC Form 8-K
- UTX +0.2% premarket
Fri, Mar. 13, 3:52 AM
- Since the beginning of the year, United Technologies (NYSE:UTX) approached several companies about acquiring Sikorsky, CEO Greg Hayes said at the company's investor meeting yesterday, although it quickly became clear that a sale would be "very hard" due to the unit's heavy tax liability.
- "The business is growing too slowly and is overly dependent on Defense Department contracts," he added.
- United Tech said on Wednesday it was exploring alternatives for Sikorsky, including a potential spinoff.
- Previously: United Tech's Sikorsky asset could be worth $7B-$8.5B, analyst says (Mar. 12 2015)
- Previously: United Tech CEO sheds light on possible Sikorsky spinoff (Mar. 12 2015)
- UTX +0.2% AH
Thu, Mar. 12, 11:33 AM
- Sikorsky Aircraft would be a sought-after property if United Technologies (UTX +2%) follows through with a sale, probably as a tax-free spinoff that could be valued on a stand-alone basis of $7B-$8.5B, or $8-$10/share, Sterne Agee's Peter Arment calculates.
- Citi's Jason Gursky says a deal should be met favorably, Sikorsky is not well aligned with UTX’s vision of being exposed to end markets that will likely benefit from the world’s growing middle class.
- Gursky is looking to Northrop Grumman's (NYSE:NOC) 2011 spinoff of Huntington Ingalls as an example, which led to the levering up of the spinco and the repurchase of the parent company stock.
- Management has put no timeline on the potential alternative outcomes, but Arment expects a conclusion by mid-summer 2015.
Thu, Mar. 12, 8:10 AM
- United Technologies' (NYSE:UTX) chief executive acknowledged that the decision to possibly spin off its Sikorsky Aircraft unit was difficult, but said it would ultimately create value by giving shareholders the choice of owning a helicopter business or owning an aerospace and commercial buildings firm.
- "The issue with Sikorsky here is not that Sikorsky is a bad business. Sikorsky is a great helicopter business," CEO Gregory Hayes told CNBC in a "Squawk Box" interview. "As we think about the portfolio, though, it's really a question of, 'How do you position yourself for above GDP growth, for higher margin into the future?"
- Hayes also noted that Sikorsky's growth will be governed by defense spending and areas of "huge uncertainty."
- Previously: WSJ: United Technologies may spin off Sikorsky Aircraft (Mar. 11 2015)
- UTX +2% premarket
Wed, Mar. 11, 7:16 PM
- The WSJ reports United Technologies (NYSE:UTX) may spin off its Sikorsky Aircraft helicopter unit, and that it might "discuss steps toward a possible spinoff" at tomorrow's investor/analyst meeting.
- Excluding restructuring costs and non-recurring items, Sikorsky had 2014 revenue of $6.62B (+6% Y/Y), and an op. profit of $699M. The business is best known for its Black Hawk helicopters.
- The meeting starts at 1PM ET tomorrow (webcast)
Wed, Mar. 11, 8:26 AM
- United Technologies (NYSE:UTX) is getting it together, writes Peter Arment, Josh Sullivan and Asher Carey in Barron's, saying new CEO Greg Hayes will set a new path that involves portfolio shaping, M&A and more buybacks.
- Sterne Agee rates the stock at Buy with a $140 price target, ahead of its 2015 investor meeting tomorrow.
- UTX +0.2% premarket
Wed, Feb. 25, 7:30 AM
- Sikorsky Aircraft (NYSE:UTX) expects to sell around 400 helicopters in the Middle East over the next five to ten years, roughly as many as it has delivered to the region to date.
- "Expansion of the existing fleet of 400 will be in a proportional manner, and modernization is going to drive that number in the region," said Anand Stanley, vice president and general manager for the Middle East, Turkey and Africa.
- Sikorsky plans to open a regional office in Abu Dhabi, and is opening a new business unit in Saudi Arabia to support military and commercial aircraft.
Fri, Feb. 20, 8:14 AM
- Sikorsky Aircraft (NYSE:UTX) will make India its only assembly location outside of the U.S. for its S-70B Seahawk helicopters if it wins contracts to build more than 120 helicopters from the country, said Samir Mehta, president of Sikorsky’s defense systems department.
- The helicopters may be built either with the Tata Group with whom Sikorsky already has an alliance, or through a new partnership with another Indian company.
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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