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| 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)
Nov. 26, 2014, 8:42 AM
- Louis Chenevert, who unexpectedly retired as United Technologies (NYSE:UTX) CEO on Monday, is leaving the company with a pay package of $172M.
- That sum includes $109M of vesting option awards, $32M of vesting performance-based restricted-stock awards and a pension worth $31M.
- Reasons behind the abrupt departure is still unknown. A company spokesman said Chenevert’s leaving wasn’t related to financial performance.
- Previously: United Technology CEO steps down
Nov. 24, 2014, 7:18 AM
- Replacing Louis Chenevert in the CEO slot, effective immediately, is CFO Gregory Hayes. Chenevert is also stepping down from the board chairman position, and lead independent Edward Kangas has been elected non-executive chairman.
- Kangas is the former chairman and CEO of Deloitte, Touche.
- UTX also reaffirms expectations for 2014 EPS o $6.75-$6.85 on revenue of about $65B.
- Source: Press Release
Nov. 21, 2014, 5:32 PM
- The Defense Department awards Lockheed Martin (NYSE:LMT) a contract valued at $4.7B for an eighth batch of F-35 fighter jets, marking a drop in the cost per plane of 3.5% from the last contract and a 57% reduction from the first batch.
- Lockheed's F-35 program manager said the latest contract showed the company was making steady progress in reducing the cost of the most advanced U.S. warplane.
- The Pentagon has signed a separate contract valued at $1.05B for an eighth batch of engines built by United Technologies' (NYSE:UTX) Pratt & Whitney unit to power the jets.
Nov. 21, 2014, 8:56 AM
- Noresco, part of United Technologies' (NYSE:UTX) UTC Building & Industrial unit, has been awarded a $43M energy savings performance contract for work at Fort Jackson in South Carolina.
- The infrastructure project includes improvements to lighting and upgrades to energy management control systems, central plant facilities and water systems.
- UTX +1.1% premarket
Nov. 11, 2014, 10:10 AM
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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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