Wed, Feb. 18, 2:38 PM
- United Technologies (UTX +0.6%) is exploring international acquisition opportunities of at least $5B that would use the company's "trapped cash" overseas, CEO Greg Hayes says.
- But until deal opportunities arise, UTX will buy back its stock, Hayes says after the company announced last month that it expects to repurchase $3B of its shares this year, although he does not see doing a buyback at $10B or more.
- Hayes sees UTX's portfolio to be split 60-40 between commercial and aero, or vice versa, and that the portfolio should support long-term, double-digit earnings growth.
Wed, Feb. 18, 8:58 AM
- As a step toward providing allied nations with weapons, the U.S. government has established a policy that will permit the widespread export of armed drones for the first time.
- Under the new rules, foreign governments' requests for drones will be examined on a case-by-case basis, while recipient nations must agree to certain "end-use assurances."
- To date, the U.S. has sold its armed drones only to Britain. Unarmed military drones, used primarily for intelligence, have been sold to several countries, including France and Italy.
- The shift in policy comes just days after the FAA proposed rules that would lift some restrictions on drones for commercial use.
- Related stocks: AVAV, NOC, TXT, LMT, LLL, RTN, BA, SAIC, GD, OA, COL, UTX
Fri, Feb. 6, 6:57 PM
- Former United Technologies (NYSE:UTX) CEO Louis Chenevert will leave the company with a package of stock options and deferred compensation that could be valued at ~$195M, WSJ reports.
- UTX shares rose more than 50% during Chenevert’s six years as CEO, which was marked by the 2012 acquisition of Goodrich Corp. and a multiyear investment of billions of dollars to develop a new line of efficient, quieter geared turbofan engines for medium-size commercial airliners.
- But Chenevert reportedly was challenged by UTX's lead director over the CEO's work commitment after he visited a factory in Taiwan where his new yacht was under construction; Chenevert tendered his retirement last November after the discussion.
Fri, Feb. 6, 7:46 AM
- Sikorsky Aircraft (NYSE:UTX) said it is seeing a big spike in demand for its UH-60 Black Hawk helicopters from Eastern Europe, driven by growing concerns in countries in the region about suppliers for their existing Russian-built helicopters.
- Several Eastern European countries have already submitted a formal request for the aircraft to the U.S. government, announced Samir Mehta, president of Sikorsky Defense Systems & Services.
- Meanwhile, the U.S. Navy said it was launching a more intensive effort to ensure that any wiring or fuel line problems with its CH-53E and MH-53E heavy-lift helicopters are corrected, following the January 2014 crash of an MH-53E Sea Dragon that killed three crew members.
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
Mon, Jan. 26, 10:21 AM
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).
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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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