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United Technologies Corporation
Company typePublic
NYSE: UTX
DJIA Component
S&P 100 Component
S&P 500 Component
IndustryConglomerate
PredecessorUnited Aircraft Corporation
Founded1934; 90 years ago (1934) (as United Aircraft Corporation)
1975; 49 years ago (1975) (as United Technologies Corporation)
FounderFrederick Rentschler
Defunct3 April 2020 Edit this on Wikidata
Headquarters
Farmington, Connecticut
,
United States[1]
Area served
Worldwide
Key people
Gregory J. Hayes
(President, Chairman and CEO)[2]
RevenueIncrease US$66.501 billion (2018)[3]
Increase US$8.553 billion (2018)[3]
Increase US$5.269 billion (2018)[3]
Total assetsIncrease US$134.211 billion (2018)[3]
Total equityIncrease US$38.446 billion (2018)[3]
Number of employees
240,000 (2018)[3]
Websitewww.utc.com

United Technologies Corporation (UTC) is an American multinational conglomerate headquartered in Farmington, Connecticut.[1] It researches, develops, and manufactures products in numerous areas, including aircraft engines, aerospace systems, HVAC, elevators and escalators, fire and security, building systems, and industrial products, among others. UTC is also a large military contractor, getting about 10% of its revenue from the U.S. government.[4][5] Gregory J. Hayes is the CEO and chairman.[6] On June 9, 2019, UTC announced a merger of equals of its defense business with Raytheon. [3]

History

Pre-1970s

Main article: United Aircraft

1970s and 1980s

In 1974, Harry Gray left Litton Industries to become the CEO of United Aircraft.[7] He pursued a strategy of growth and diversification, changing the parent corporation's name to United Technologies Corporation (UTC) in 1975 to reflect the intent to diversify into numerous high tech fields beyond aerospace.[8] (The change became official on May 1, 1975.) The diversification was partially to balance civilian business against any overreliance on military business.[7] UTC became a mergers and acquisitions (M&A)–focused organization, with various forced takeovers of unwilling smaller corporations.[7] The next year (1976), UTC forcibly acquired Otis Elevator.[9] In 1979, Carrier Refrigeration and Mostek were acquired;[10] the Carrier deal was forcible, while the Mostek deal was a white knight move against hostile takeover designs by Gould.

At one point the military portion of UTC's business, whose sensitivity to "excess profits" and boom/bust demand drove UTC to diversify away from it, actually carried the weight of losses incurred by the commercial M&A side of the business.[7] Although M&A activity was not new to United Aircraft, the M&A activity of the 1970s and 1980s was higher-stakes and arguably unfocused. Rather than aviation being the central theme of UTC businesses, high tech (of any type) was the new theme. Some Wall Street watchers questioned the true value of M&A at almost any price, seemingly for its own sake.[7]

Mostek was sold in 1985 to the French electronics company Thomson.

1990s

UTC acquired Sundstrand Corporation in 1999, and merged it into UTC's Hamilton Standard unit to form Hamilton Sundstrand.

2000s

In 2003, UTC entered the fire and security business by purchasing Chubb Security.

In 2004, UTC acquired the Schweizer Aircraft Corporation which planned to operate as a wholly owned subsidiary under their Sikorsky Aircraft division.[11]

In 2005, UTC further pursued its stake in the fire and security business by purchasing Kidde. Also in 2005, UTC acquired Boeing's Rocketdyne division, which was merged into the Pratt & Whitney business unit and renamed Pratt & Whitney Rocketdyne (later sold to Aerojet and merged into Aerojet Rocketdyne.

In 2007, UTC opened the Hawk Works, a Rapid Prototyping and Military Derivatives Completion Center (RPMDCC) located west of the Elmira-Corning Regional Airport in Big Flats, New York.[12]

In March 2008, UTC made a $2.63 billion bid to acquire Diebold, a Canton, Ohio based manufacturer of banking and voting machines.[13] Diebold rejected the buyout bid as inadequate.[14]

In November 2008, UTC's Carrier Corporation acquired NORESCO, an energy service company.[15][16]

In December 2009, it was announced that UTC would acquire a 49.5% stake in Clipper Windpower for $206 million.[17][18][19][20]

2010s

In April 2010, UTC announced that it was investing €15 million ($20 million) to set up the United Technologies Research Centre Ireland in University College Cork which will carry out research on energy and security systems.[21]

In October 2010, UTC agreed with Clipper to acquire the rest of the company.[22]

In September 2011, UTC acquired a $18.4 billion deal (including $1.9 billion in net debt assumed) for aircraft components maker Goodrich Corporation.[23]

In June 2012, it was discovered that UTC sold military technology to the Chinese.[24] For pleading guilty to violating the Arms Export Control Act and making false statements, United Technologies and its subsidiaries were fined $75 million.[25]

In July 2012, United Technologies acquired Goodrich and merged it with Hamilton Sundstrand; the resulting organization is UTC Aerospace Systems.

In February 2013, UTC Power was sold to ClearEdge Power.[26]

In October 2014, Toshiba and United Technologies made a deal to expand their joint venture outside Japan.[27]

In January 2015, UTC Building & Industrial Systems completed the acquisition of CIAT Group, a leading HVAC manufacturing company in France.[28] In November, Lockheed Martin completed its $9.0 billion acquisition of Sikorsky Aircraft.[29]

In February 2016, UTC subsidiary Carrier Air Conditioner announced to employees at its Indianapolis plant that Carrier is moving manufacturing to Mexico: “The best way to stay competitive and protect the business for long-term is to move production from our facility in Indianapolis to Monterrey, Mexico.” [30] In December, Carrier agreed to keep the Indianapolis plant open, keeping 1,100 jobs in Indianapolis.[31]

On September 4, 2017, UTC proposed to acquire Rockwell Collins in cash and stock for $23 billion, $30 billion including Rockwell Collins' net debt, for $500+ million of synergies expected by year four.[32]

On November 26, 2018, the company announced the Rockwell Collins deal had closed, and that it will split into three independent companies.[33] Pratt and Whitney and the newly-formed Collins Aerospace will remain under United Technologies, while Otis Elevator and UTC Climate, Controls & Security (doing business as Carrier) will be spun off as two independent companies. [34]

In June 2019 United Technologies announced the intention to merge with defense contractor Raytheon. The combined company, valued at more than $100 billion after planned spinoffs, would be the world’s second-largest aerospace-and-defense company by sales behind Boeing.[35]

Finances

For the fiscal year 2017, United Technologies reported earnings of US$4.552 billion, with an annual revenue of US$59.837 billion, an increase of 4.5% over the previous fiscal cycle. United Technologies shares traded at over $114 per share, and its market capitalization was valued at US$98.6 billion in October 2018.[36] UTC ranked No. 51 in the 2018 Fortune 500 list of the largest United States corporations by total revenue.[37]

Year Revenue
in mil. USD$ 		Net income
in mil. USD$ 		Total Assets
in mil. USD$ 		Price per Share
in USD$ 		Employees
2005 42,725 3,069 45,925 38.42
2006 47,829 3,732 47,141 46.56
2007 55,716 4,224 54,575 54.94
2008 59,119 4,689 56,837 49.91
2009 52,425 3,829 55,762 44.36
2010 52,275 4,373 58,493 58.86
2011 55,754 4,979 61,452 67.41
2012 57,708 5,130 89,409 67.87
2013 56,600 5,721 90,594 87.83 212,000
2014 57,900 6,220 91,206 101.42 211,000
2015 56,098 7,608 87,484 99.09 197,000
2016 57,244 5,055 89,706 96.15 202,000
2017 59,837 4,552 96,920 114.01 205,000

Business units

Hartford's Gold Building served as UTC's headquarters from 1975 to 2015[38]
Otis Elevator's former headquarters serve as UTC's headquarters since 2015
  • Otis Elevator Company: Manufacturer, installer, and servicer of elevators, escalators, and moving walkways.
  • Pratt & Whitney: Designs and builds aircraft engines and gas turbines.
  • Collins Aerospace: Designs and manufactures aerospace systems for commercial, regional, corporate and military aircraft; a major supplier for international space programs. Provides industrial products for the hydrocarbon, chemical, and food processing industries, construction and mining companies. Collins Aerospace was formed following UTC's acquisition of Rockwell Collins in 2018, by combining the newly-acquired business with UTC Aerospace Systems, which itself was the result of a 2012 merger of Hamilton Sundstrand and the Goodrich Corporation.
  • UTC Climate, Controls & Security:[39] Makes fire detection and suppression systems, access control systems, and security alarm systems; provides security system integration and monitoring services.
  • United Technologies Research Center (UTRC): A centralized research facility that supports all UTC business units in developing new technologies and processes.[44]

Former businesses

Political contributions

During the 2004 election cycle, UTC was the sixth largest defense industry donor to political campaigns, contributing a total of $789,561. Sixty-four percent of UTC's 2004 contributions went to Republicans. UTC was also the sixth largest donor to federal candidates and political parties in the 2006 election cycle. Thirty-five percent of those contributions went to Democrats; 53% of the funds were contributed to Republicans.[49]

In 2005, United Technologies was among 53 entities that contributed the maximum of $250,000 to the second inauguration of President George W. Bush.[50][51]

Philanthropy

In 1981, a contribution from UTC made possible the exhibition "Paris/Magnum: Photographs 1935–1981", featuring photographs of Paris taken by photographers of Magnum Photos, the agency founded in 1947 by Robert Capa, George Rodger, Henri Cartier-Bresson, William Vandivert, and David Seymour. A volume of the same title, with text by Irwin Shaw and an introduction by Inge Morath, was also published in 1981.

UTC is the sponsor of the exhibition "Aphrodite and the Gods of Love" at Boston's Museum of Fine Arts that opened in fall 2011.[52]

UTC and its subsidiaries are major contributors to museums such as the New England Air Museum.[53]

Environmental record

Researchers at the University of Massachusetts Amherst have identified UTC as the 38th-largest corporate producer of Air pollution in the United States as of 2008. UTC released roughly 110,000 pounds of toxic chemicals annually into the atmosphere[54] including manganese, nickel, chromium and related compounds.[55][56]

In the 2016 University of Massachusetts Amherst Toxic 100 Air Polluters Index, UTC was ranked 9th by a toxicity population exposure score. It was also reported they release 60,000 pounds of toxins into the air, the second lowest amount by the top 10 listed companies.[57]

See also

References

  1. ^ a b "Locations". utc.com. Retrieved February 1, 2016.
  2. ^ "Louis Chenevert stepping down as CEO of United Technologies, being replaced by Gregory J. Hays". Market Business News. November 24, 2014. Retrieved November 24, 2014.
  3. ^ a b c d e f "United Technologies Annual Report 2018". UTC. Retrieved April 23, 2019.
  4. ^ Ehrenfreund, Max (December 5, 2016). "CEO: United Tech. considered federal contracts in decision to keep Indiana jobs in deal with Trump". The Washington Post. Retrieved January 2, 2016. I also know that about 10 percent of our revenue comes from the U.S. government," [United Technologies chief executive Greg Hayes] said.
  5. ^ "CorpWatch : United Technologies". Archived from the original on July 4, 2015. Retrieved July 3, 2015. {{cite web}}: Unknown parameter |dead-url= ignored (|url-status= suggested) (help)
  6. ^ "UTC Names Gregory J. Hayes As President And Chief Executive Officer". CNN. November 24, 2014. Archived from the original on November 29, 2014. Retrieved November 24, 2014. {{cite web}}: Unknown parameter |dead-url= ignored (|url-status= suggested) (help)
  7. ^ a b c d e Fernandez 1983.
  8. ^ Fernandez 1983, p. 246.
  9. ^ Fernandez 1983, pp. 246–251.
  10. ^ Fernandez 1983, pp. 260–264.
  11. ^ Schweizer acquisition press release Archived April 10, 2008, at the Wayback Machine
  12. ^ John Pike. "Sikorsky opens HAWK WORKS™ completion center for military helicopters". Retrieved July 3, 2015.
  13. ^ UTC's bid for Diebold
  14. ^ "Diebold rejects $2.63 billion buyout bid - Business - US business - msnbc.com". MSNBC. March 3, 2008. Retrieved February 16, 2012.
  15. ^ "Archived copy". Archived from the original on December 30, 2013. Retrieved April 25, 2013. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)CS1 maint: archived copy as title (link)
  16. ^ [1]
  17. ^ Clipper Windpower Gets GBP126.5 Million Investment From United Tech[permanent dead link‍]
  18. ^ "Clipper says UTC to buy 49.5 percent stake". Reuters. Retrieved July 3, 2015.
  19. ^ Terry Macalister. "United Technologies Corporation flies to the rescue of Clipper Windpower". the Guardian. Retrieved July 3, 2015.
  20. ^ UTC aims to take 49.5% of Clipper Windpower Archived March 5, 2012, at the Wayback Machine
  21. ^ [2][dead link‍]
  22. ^ UTC to acquire remaining interest in Clipper Windpower North American Windpower, October 18, 2010. Retrieved: October 23, 2010.
  23. ^ "United Technologies to acquire Goodrich in USD 18.4 bn deal". September 23, 2011.
  24. ^ "United Technologies sent military copter tech to China". Reuters. June 28, 2012.
  25. ^ Winter, Michael (June 28, 2012). "United Technologies sold China software for attack copter". USA Today.
  26. ^ Nirappil, Fenit (February 12, 2013). "ClearEdge Power finalizes acquisition of UTC Power". The Oregonian. Retrieved February 24, 2013.
  27. ^ "Toshiba and United Technologies ink deal to expand outside Japan" (Press release). Reuters. October 16, 2014.
  28. ^ UTC Building & Industrial Systems Completes CIAT Acquisition
  29. ^ "Lockheed Martin Completes Acquisition of Sikorsky Aircraft · Lockheed Martin". lockheedmartin.com. Retrieved February 18, 2016.
  30. ^ Mann, Ted (February 13, 2016). "Viral Video Over Plant Closure Gets Attention in GOP Debate". The Wall Street Journal. Retrieved March 3, 2016.
  31. ^ "UTC CEO says no 'quid pro quo' on keeping Indiana plant open". CNBC. December 5, 2016. Retrieved December 15, 2016.
  32. ^ "United Technologies To Acquire Rockwell Collins For $30 Billion" (Press release). United Technologies. September 4, 2017.
  33. ^ Craver, Richard (November 27, 2018). "UTC completes $30B deal for Rockwell Collins, announces three-way split of company". Winston-Salem Journal.
  34. ^ https://www.wsj.com/articles/united-technologies-to-separate-into-three-independent-companies-1543272920?mod=djemalertNEWS
  35. ^ Lombardo, Cara; Cameron, Doug (June 10, 2019). "United Technologies Strikes Deal to Merge With Raytheon". Wall Street Journal. ISSN 0099-9660. Retrieved June 10, 2019.
  36. ^ "United Technologies Financial Statements 2005-2018 | UTX". www.macrotrends.net. Retrieved October 30, 2018.
  37. ^ "Fortune 500 Companies 2018: Who Made the List". Fortune. Retrieved November 10, 2018.
  38. ^ "Without Fanfare, UTC Relocates World Headquarters to a Farmington Office Park". Hartford Courant. Hartford, Connecticut. September 4, 2015. Retrieved August 15, 2017.
  39. ^ "United Technologies Announces Organization and Leadership Changes To Commercial Businesses". www.utc.com. Retrieved May 23, 2016.
  40. ^ NORESCO
  41. ^ Carrier Corporation (November 21, 2008). "Carrier Acquires Noresco to Expand Energy Solutions Capabilities". Retrieved July 3, 2015.
  42. ^ "GFI Energy Ventures LLC Completes Sale of NORESCO to Carrier". Bloomberg.
  43. ^ Kidde (US)
  44. ^ "Home - United Technologies Research Center". Retrieved July 3, 2015.
  45. ^ http://www.lockheedmartin.com/us/news/press-releases/2015/november/151106-lockheed-martin-acquires-sikorsky.html. Lockheed Martin Corporation. November 6, 2015. Retrieved November 8, 2015.
  46. ^ http://www.pzlmielec.pl/en/media/news/art,100,lockheed-martin-completes-acquisition-of-sikorsky-aircraft.html. PZL Mielec. November 6, 2015. Retrieved November 8, 2015.
  47. ^ Kinsman, Susan E. (2000-12-17) "A Thirst For Juice" http://articles.courant.com/2000-12-17/business/0012170324_1_international-fuel-cells-power-market-power-production. The Courant. Retrieved 2013-08-20
  48. ^ Dowling, Brian (2013-05-17) "Tokyo Manufacturer Closes On Purchase Of Pratt Land-Turbine Business" http://articles.courant.com/2013-05-17/business/hc-pratt-whitney-power-systems-deal-20130517_1_pratt-whitney-power-systems-east-hartford-mhi. The Hartford Courant. Retrieved 2013-08-20.
  49. ^ "Agribusiness". Archived from the original on April 25, 2008. Retrieved July 3, 2015. {{cite web}}: Unknown parameter |dead-url= ignored (|url-status= suggested) (help)
  50. ^ Drinkard, Jim (January 17, 2005). "Donors get good seats, great access this week". USA Today. Retrieved May 25, 2008.
  51. ^ "Financing the inauguration". USA Today. January 16, 2005. Retrieved May 25, 2008.
  52. ^ "Archived copy" (PDF). Archived from the original (PDF) on September 19, 2011. Retrieved August 27, 2011. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)CS1 maint: archived copy as title (link)
  53. ^ Matt. "New England Air Museum". Retrieved July 3, 2015.
  54. ^ "Toxic 100 Index". Political Economic Research Institute. Archived from the original on July 27, 2010. Retrieved November 26, 2008. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  55. ^ "United Technologies". Political Economic Research Institute. Archived from the original on December 21, 2008. Retrieved November 26, 2008. {{cite web}}: Unknown parameter |dead-url= ignored (|url-status= suggested) (help)
  56. ^ "United Technologies and the Environment". MNN - Mother Nature Network. Retrieved April 17, 2017.
  57. ^ Baylor, Matthew (October 26, 2016). "Toxic 100 Air Polluters Index: 2016 Report, Based on 2014 Data)". PERI. Retrieved April 17, 2017.

Bibliography

Wikimedia Commons has media related to United Technologies.
  • UTC website
  • Business data for United Technologies:
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