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%
Jan. 22, 2014, 7:40 AM
- United Tech (UTX -1.7%) "Comprehensive income" $3.9B vs $1.27B a year earlier, which included greater restructuring costs and other one-time charges.
- Organic sales +4%.
- Sales breakdown: Otis $3.34B vs $2.205B in 2012; Climate, Controls & Security $4.19B vs $4.15B; Pratt & Whitney $4.09B vs $3.89B; Aerospace Systems $3.45B vs $3.17B; Sikorsky $1.9B vs $3.17B.
- United Tech expects 2014 EPS of $6.55-6.85 vs consensus of 6.82 and sales of $64B vs $65.36B
- Intends to buy back $1B worth of shares in 2014 and spend the same amount on acquisitions. (PR)
Jan. 22, 2014, 7:01 AM| 1 Comment
Jan. 22, 2014, 12:05 AM
Jan. 21, 2014, 5:30 PM
Dec. 12, 2013, 5:35 PM
- United Technologies (UTX) -1.9% AH after an investor day presentation forecasts FY 2013 EPS of ~$6.15, narrowed from an earlier $6.10-$6.15 and in-line with $6.15 analyst consensus estimate, and reaffirms revenue guidance of ~$63B vs. $63.05B consensus.
- For 2014, UTX sees EPS of $6.55-$6.85 vs. $6.84 consensus and revenue of ~$64B vs. $66.2B consensus.
- Reiterates restructuring expense of ~$500M.
Oct. 22, 2013, 7:39 AM
- United Tech's (UTX) net profit edges up to $1.43B from $1.42B last year. Earnings include $0.08 a share of restructuring costs.
- Income from continuing operations $1.415B vs $1.25B.
- Raises the low end of FY EPS outlook by 10 cents and now expects $6.10-6.15 vs consensus of $6.16. However, forecasts sales of $63B vs previous guidance of $64B, due to the "weakness in military aerospace markets and the slow pace of recovery in Europe." Consensus is for $63.9B.
- United Tech expects to invest $500M in restructuring in 2013, with one-time items to offset restructuring costs. (Previous) (PR)
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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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