May. 21, 2014, 10:55 AM
- The U.S. Navy is in talks with other governments to boost by 50% the planned purchase of CH-53K helicopters built by United Technologies' (UTX +1.5%) Sikorsky unit.
- Negotiations to sell as many as 100 of the new heavy lift helicopters are well under way, according to the Navy's international program manager for heavy lift helicopters.
- The CH-53K has far more powerful engines than the current model can deliver; the engines, supplied by GE, allow the helicopter to carry 27K lbs. of cargo over a range of 110 nautical miles.
May. 20, 2014, 10:45 AM
- United Technologies' (UTX -0.7%) Pratt & Whitney unit says it has signed more than $10B in long-term supply agreements in the past year.
- The agreements with more than 90 suppliers include parts for Pratt's new geared turbofan engine, which is helping revitalize the company's business providing engines to commercial jets.
- The unit also says it is making significant investments in its global facilities as it prepares for an increase in commercial and military engine production.
May. 7, 2014, 6:19 PM
- United Technologies' (UTX) Sikorsky Aircraft unit wins an initial $1.24B Pentagon contract for six new U.S. presidential helicopters, the first step toward a fleet of 21 new aircraft by 2023.
- Sikorsky is awarded a fixed-price incentive type contract, which sets a ceiling while rewarding a contract for keeping costs less than targets; an earlier program managed by Lockheed Martin was canceled in 2009 after what started as a $6.1B project for as many as 28 copters grew to a projected $13B.
- GE will supply engines for the Marine One, a modified version of Sikorsky’s S-92 helicopter.
Apr. 25, 2014, 10:39 AM
- United Technologies (UTX -1%) discloses that the SEC is investigating one of its non-employee sales reps who sold jet engines in China.
- UTX says the SEC issued a subpoena seeking documents related to disclosures of sales of its Pratt & Whitney engines and International Aero Engines.
- UTX says the probe follows its voluntary disclosures to U.S. regulators, which resulted in the company suspending payments to the salesperson, triggering a lawsuit and an arbitration claim.
Apr. 25, 2014, 9:11 AM
- Ballard Power (BLDP) +8.4% premarket after announcing the acquisition of the transportation- and stationary-related fuel cell intellectual property assets of United Technologies (UTX).
- The assets consist of ~800 patents and patent applications, as well as patent licenses, invention disclosures and know-how primarily related to Proton Exchange Membrane fuel cell technology.
- UTX receives 5.1M BLDP common shares, $2M cash, a grant-back license to use the patent portfolio in its existing businesses and a royalty on BLDP's future IP licensing income generated from the combined IP portfolio.
Apr. 22, 2014, 3:54 PM
- United Technologies (UTX +0.9%) CFO Greg Hayes says Q1's 19% Y/Y rise in orders for the company's Carrier heating and cooling systems - despite the harsh winter weather conditions - suggests growing strength in the U.S. housing market.
- Hayes says Carrier's residential business historically has proven a reliable indicator about the state of the U.S. housing market; in 2007, Carrier's sliding sales foreshadowed the coming housing bust, but "here it is 2014 and it's going the other way, so we feel pretty good about the U.S. economy."
- Sterne Agee likes what it saw in UTX's Q1 results, reiterating its Buy rating, while RBC Capital calls the quarter a good start on the way toward improved growth through the year.
- Homebuilder ETFs: ITB, XHB
Apr. 22, 2014, 7:19 AM
- United Tech (UTX) net profit -4% to $1.2B, or $1.32 a share, including $0.09 a share of restructuring costs.
- Segment operating profit +4%.
- Sales breakdown: Otis $3B vs $2.81B a year earlier; Climate, Controls & Security $3.85B vs $3.84B; Pratt & Whitney $3.33B vs $3.4B; Aerospace Systems $3.45B vs $3.26B; Sikorsky $1.36B vs $1.25B.
- To increase restructuring spending to $375M from $300M.
- Increases lower end of 2014 EPS outlook and now expects $6.65-6.85 vs $6.55-6.85 previously and consensus of $6.83.
- "Continued organic growth and orders strength give us confidence in our sales expectation of $64B for 2014," says CEO Louis Chenevert. (PR)
Apr. 22, 2014, 7:00 AM| 1 Comment
Apr. 22, 2014, 12:05 AM
Apr. 21, 2014, 5:30 PM
Apr. 16, 2014, 9:12 AM
- The Pentagon would have to cut $40B of its planned spending on operations and maintenance from 2016-2019 if Congress doesn't stop automatic budget cuts that are due to take effect in 2016.
- In a report yesterday, the DOD also said the R&D budget would fall $18B to $337B.
- Companies that would be affected include Lockheed Martin (LMT) and its F-35 program, Boeing (BA), Northrop Grumman (NOC), United Technologies (UTX), GD (GD) and Huntington Ingalls Industries (HII).
Apr. 9, 2014, 8:13 AM
- Lieutenant-General Chris Bogdan, who manages the F-35 fighter jet program for the Pentagon, expects the government to reach agreements with Lockheed Martin (LMT) and engine maker Pratt & Whitney (UTX) for the next order of the aircraft by the end of next month.
- Bogdan wants Pratt to lower the cost of the engines by more than 2.5%, saying that the company hadn't met any of the goals set in 2009 for reducing the price.
- The cost of F-35 is $112M each, although the government wants to slash it to $80-85M by 2019.
Mar. 24, 2014, 8:47 AM
- Airbus (EADSF) has received an order for 37 A320 neo jets from Tigerair (TAIRF) in a deal worth $3.8B at list prices, although the Asian budget carrier said that the actual price was "significantly lower."
- The aircraft will be installed with engines from United Tech's (UTX) Pratt & Whitney.
- Tigerair, which is 40%-owned by Singapore Airlines (SINGY), also has an option for an extra 13 A320 neo aircraft.
- The operator has canceled an existing order for nine A320 jets.
Mar. 13, 2014, 2:32 PM
- United Technologies (UTX -2.3%) issues downside Q1 earnings guidance, seeing EPS of $1.25, well below analyst consensus forecast of $1.39, while its updated FY 2014 EPS guidance of $6.55-$6.85 leaves little room to beat forecasts for $6.82.
- Says it aims to increase revenue by mid-single-digit percentages annually, excluding acquisitions, from now until 2020.
- Shares are now the Dow's biggest decliner today.
Mar. 4, 2014, 6:51 PM
- The Pentagon said today that it would continue funding toward a new Sikorsky military rescue helicopter, paving the way for a potential contract award later this year to sole bidder United Technologies (UTX) that could eventually be worth more than $10B.
- The last-minute reprieve for the program follows intense lobbying by members of Congress, many of whom are critical of the broader $495B Pentagon budget. triggering horse-trading over various individual weapons purchases and planned cuts in the armed forces.
- U.S. Air Force officials had said previously that while the helicopter was needed, it may not make the cut because of budget pressures and other priorities.
Jan. 27, 2014, 11:00 AM
- A spinoff of the helicopter maker looks to be the most likely option, reports DefenseNews, but an outright sale or a strategic merger are also being looked at. Unclear is how long a spinoff might take or who a buyer might be in a sale.
- The company declined to comment, but former Pentagon manufacturing and industrial policy chief Brett Lambert says current market conditions make the timing ripe, and expects more M&A and spinoff activity in the next 12 months than has been seen in the last 36.
- UTX +2.4%
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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