“Market Cap $108.07 B As of May 2014
At a Glance
- Industry: Conglomerates
- Founded: 1929
- Country: United States
- CEO: Louis Chenevert
- Website: www.utc.com
- Employees: 212,000
- Sales: $62.65 B
- Headquarters: Hartford, Connecticut
#90 Global 2000
- #125 in Sales
- #105 in Profit
- #274 in Assets
- #62 in Market value
United Technologies Corp. provides products and services to the building systems and aerospace industries worldwide. The company operates through five business segments: Otis, UTC Climate, Controls & Security, Pratt & Whitney, UTC Aerospace Systems, and Sikorsky. The Otis segment is a elevator and escalator manufacturing, installation and service company. It designs, manufactures, sells and installs a wide range of passenger and freight elevators for low-medium and high-speed applications, as well as a broad line of escalators and moving walkways. This segment also provides products to upgrade elevators and escalators as well as maintenance and repair services for both its products and those of other manufacturers. The UTC Climate, Controls & Security segment provides heating, ventilating, air conditioning (HVAC) and refrigeration solutions, including controls for residential, commercial, industrial and transportation applications. This segment also provides security and fire safety products and services, monitoring, response and security personnel services, including cash-in-transit security, to complement its electronic security and fire safety businesses. The Pratt & Whitney segment provides aircraft engines for the commercial, military, business jet and general aviation markets. This segment’s commercial engines provide maintenance, repair and overhaul services, including the sale of spare parts, as well as fleet management services for large commercial engines. The UTC Aerospace Systems segment provides aerospace products and aftermarket services for diversified industries worldwide. Its aerospace products include electric power generation, management and distribution systems, flight control systems, engine control systems, intelligence, surveillance and reconnaissance systems, engine components, environmental control systems, fire protection and detection systems, propeller systems, aircraft nacelles, and interior, actuation, landing and electronic systems. This segment’s aftermarket services include spare parts, overhaul and repair, engineering and technical support and fleet maintenance programs. The Sikorsky segment manufactures military and commercial helicopters and also provides aftermarket helicopter and aircraft parts and services. This segment’s aftermarket business includes spare parts sales, mission equipment, overhaul and repair services, maintenance contracts and logistics support programs for helicopters and other aircraft. United Technologies was founded in 1934 and is headquartered in Hartford, CT.“
“United Technologies History
1970s and 1980s
In 1974, Harry Gray left Litton Industries to become the CEO of United Aircraft. 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.(The change became official on May 1, 1975.) The diversification was partially to balance civilian business against any overreliance on military business. UTC became a mergers and acquisitions (M&A)–focused organization, with various forced takeovers of unwilling smaller corporations. The next year (1976), UTC forcibly acquired Otis Elevator. In 1979, Carrier Refrigeration and Mostek were acquired; 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. 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.
Mostek was sold in 1985 to the French electronics company Thomson.
UTC acquired Sundstrand Corporation in 1999, and merged it into UTC’s Hamilton Standard unit to form Hamilton Sundstrand.
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.
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 thePratt & Whitney business unit.
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, NY.
In March 2008, UTC made a $2.63 billion bid to acquire Diebold, a Canton, Ohio based manufacturer of banking and voting machines. Diebold rejected the buyout bid as inadequate.
In November 2008, UTC’s Carrier Corporation acquired NORESCO, which is one of the nation’s largest energy service companies.
In December 2009, it was announced that UTC would acquire a 49.5% stake in Clipper Windpower for $206 million.
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.
In October 2010, UTC agreed with Clipper to acquire the rest of the company.
In September 2011, UTC acquired a $18.4 billion deal (including $1.9 billion in net debt assumed) for aircraft components maker Goodrich Corporation.
In June 2012, it was discovered that UTC sold military technology to the Chinese. For pleading guilty to violating the Arms Export Control Act and making false statements, United Technologies and its subsidiaries were fined $75 million.
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.”
*Information from Forbes.com and Wikipedia.org
**Video published on YouTube by “United Technologies Corporation“