United Technologies

United Technologies Corporation

Type	Public
Traded as	NYSE: UTX Dow Jones Industrial Average Component S&P 500 Component
Industry	Conglomerate
Predecessor	United Aircraft Corporation
Founded	1975
Founders	Frederick Rentschler
Headquarters	Farmington, Connecticut, United States[1]
Area served	Worldwide
Key people	Gregory J. Hayes (President and CEO)[2]
Revenue	US$56.098 billion (2015)[3]
Operating income	US$7.291 billion (2015)[3]
Net income	US$7.608 billion (2015)[3]
Total assets	US$87.484 billion (2015)[3]
Total equity	US$27.358 billion (2015)[3]
Number of employees	196,200 (2016)[4]
Website	UTC.com

United Technologies Corporation (UTC) is an American multinational conglomerate headquartered in Farmington, Connecticut.^[1] It researches, develops, and manufactures high-technology products in numerous areas, including aircraft engines, HVAC, fuel cells, elevators and escalators, fire and security, building systems, and industrial products, among others. UTC is also a large military contractor, producing missile and aircraft systems.^[5] Gregory Hayes is the current CEO.^[6]

History

Pre-1970s

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^[11] 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 the Pratt & Whitney business unit.

In 2007, UTC opened the Hawk Works,^[12] 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.^[13] Diebold rejected the buyout bid as inadequate.^[14]

In November 2008, UTC's Carrier Corporation acquired NORESCO,^[15][16] 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.^{[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 agreed a deal to expand their joint venture outside Japan.^[27]

In November 2015, Lockheed Martin completed its $9.0 billion acquisition of Sikorsky.^[28]

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.” ^[29]

Business units

• Carrier: A global manufacturer of heating, ventilation, air conditioning, and refrigeration systems.
  • NORESCO^[30][31][32]
• UTC Aerospace Systems: 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. UTC Aerospace Systems was formed by combining Hamilton Sundstrand and Goodrich in 2012.
• Otis Elevator Company: Manufacturer, installer, and servicer of elevators, escalators, and moving walkways.
• Pratt & Whitney: Designs and builds aircraft engines and gas turbines.
  • Pratt & Whitney Canada
• UTC Building and Industrial Systems: 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.^[33]

Former businesses

• Hamilton Test Systems, an Arizona-based developer of vehicle emission test equipment, which was sold to Georgetown Partners in December 1990, who renamed it Envirotest Systems Corp. It is now part of Environmental Systems Products Holdings (ESPH).
• Inmont paint and resins, which was later sold to BASF
• Mostek semiconductor — from 1979 to 1985
• Norden Systems - a corporation that manufactures electronics systems for military use, now a part of Northrop Grumman.
• Pratt & Whitney Rocketdyne (sold in June 2013 and now part of GenCorp)
• Sikorsky Aircraft — maker of helicopters for commercial, industrial, institutional, government, and military use, now a part of Lockheed Martin^[34]
  • PZL Mielec^[35]
• UT Automotive — now a division of Lear Corporation
• UT Communications bought Lexar and Stromberg Carlson, makers of telephone equipment, which were later sold to Memorex in 1985.
• Turbo Power and Marine Systems, Inc, a manufacturer of simple-cycle electrical power generation Power units 25 MW & 50 MW. Renamed to Pratt & Whitney Power Systems in 2000,^[36] sold to Mitsubishi Heavy Industry in May 2013^[37] and is now a MHI group company named PW Power Systems, Inc.
• Hamilton Standard, which became part of Hamilton Sundstrand, now part of UTC Aerospace Systems
• Clipper Windpower: A maker of wind turbines. In December 2010 Clipper Windpower was acquired by United Technologies Corporation. It was sold in 2012 to Platinum Equity LLC.
• UTC Power, a manufacturer of distributed power generation systems and fuel cells for commercial, transportation, and space and defense applications. It was sold to ClearEdge Power in February 2013.

Political contributions

During the 2004 election cycle, UTC was the sixth largest defense industry donor to political campaigns, contributing a total of $789,561. 64% 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. 35% of those contributions went to Democrats; 53% of the funds were contributed to Republicans.^[38]

In 2005, United Technologies was among 53 entities that contributed the maximum of $250,000 to the second inauguration of President George W. Bush.^[39][40]

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 "Aphrodite and the Gods of Love" at Boston's Museum of Fine Arts that opened in fall 2011.^[41]

UTC and its subsidiaries are major contributors to museums such as the New England Air Museum.^[42]

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 ^[43] including manganese, nickel, chromium and related compounds.^[44]

In 2006, they joined the Chicago Climate Exchange as a Phase 1 and Phase 2 member.^[45]

See also

• Top 100 US Federal Contractors
• Honor Award from the National Building Museum

References

1. "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. 24 November 2014. Retrieved 2014-11-24.
3. "United Technologies Form 10-K, Annual Report, Filing Date Feb 19, 2016". secdatabase.com. Retrieved Mar 20, 2013.
4. "UTC Facts". UTC. Retrieved 19 February 2016.
5. "CorpWatch : United Technologies". Retrieved July 3, 2015.
6. "UTC Names Gregory J. Hayes As President And Chief Executive Officer". CNN. 24 November 2014. Retrieved 2014-11-24.
7. Fernandez 1983.
8. Fernandez 1983, p. 246.
9. Fernandez 1983, pp. 246–251.
10. Fernandez 1983, pp. 260–264.
11. Schweizer acquisition press release
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. 2008-03-03. Retrieved 2012-02-16.
17. Clipper Windpower Gets GBP126.5 Million Investment From United Tech
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
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 24 February 2013.
27. "Toshiba and United Technologies ink deal to expand outside Japan" (Press release). Reuters. 16 October 2014.
28. "Lockheed Martin Completes Acquisition of Sikorsky Aircraft · Lockheed Martin". lockheedmartin.com. Retrieved 2016-02-18.
29. Mann, Ted (13 February 2016). "Viral Video Over Plant Closure Gets Attention in GOP Debate". The Wall Street Journal. Retrieved 3 March 2016.
31. Carrier Corporation (November 21, 2008). "Carrier Acquires Noresco to Expand Energy Solutions Capabilities". Retrieved July 3, 2015.
32. "GFI Energy Ventures LLC Completes Sale of NORESCO to Carrier". Bloomberg.
33. "Home - United Technologies Research Center". Retrieved July 3, 2015.
34. 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.
35. 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.
36. 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
37. 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.
38. "Agribusiness". Retrieved July 3, 2015.
39. Drinkard, Jim (2005-01-17). "Donors get good seats, great access this week". USA Today. Retrieved 2008-05-25.
40. "Financing the inauguration". USA Today. 2005-01-16. Retrieved 2008-05-25.
41. http://www.mfa.org/sites/default/files/MFA_Aphrodite%20press%20release_8.9.11_0.pdf
42. Matt. "New England Air Museum". Retrieved July 3, 2015.
43. "Toxic 100 Index". Political Economic Research Institute. Retrieved 2008-11-26.
44. "United Technologies". Political Economic Research Institute. Retrieved 2008-11-26.
45. UTC - Community involvement, grants, financial support and support of the arts - hvac, fuel cells, helicopters, security systems, elevators

Bibliography

• Fernandez, Ronald (1983), Excess profits: the rise of United Technologies, Boston, Massachusetts, USA: Addison-Wesley, ISBN 9780201104844.
• Holland, Max (1989), When the Machine Stopped: A Cautionary Tale from Industrial America, Boston: Harvard Business School Press, ISBN 978-0-87584-208-0, OCLC 246343673.

External links

• UTC Homepage