Summary
United Technologies Corporation (UTC), operating under the ticker RTX, reported its fiscal year 2015 performance in this 10-K filing, highlighting a diversified business across aerospace and commercial sectors. A significant event during the year was the divestiture of the Sikorsky Aircraft business to Lockheed Martin, which impacted the company's segment structure. The company's operations are broadly categorized into Otis (elevators and escalators), UTC Climate, Controls & Security (HVAC and security solutions), Pratt & Whitney (aircraft engines), and UTC Aerospace Systems (aerospace products and services). Internationally, UTC generated a substantial portion of its revenue, with 62% of consolidated sales coming from international operations. The aerospace businesses, Pratt & Whitney and UTC Aerospace Systems, are crucial, with Pratt & Whitney notably developing the innovative PurePower® Geared TurboFan engine. The company also detailed significant R&D investments, amounting to $2.3 billion in 2015, underscoring its commitment to technological advancement. Investors should note the company's extensive backlog, particularly in the aerospace segments, and its ongoing efforts in cost reduction and restructuring.
Financial Highlights
52 data points| Revenue | $56.10B |
| Cost of Revenue | $29.77B |
| Gross Profit | $26.33B |
| R&D Expenses | $2.28B |
| SG&A Expenses | $5.89B |
| Operating Expenses | $48.60B |
| Operating Income | $7.29B |
| Interest Expense | $824.00M |
| Net Income | $7.61B |
| EPS (Basic) | $8.72 |
| EPS (Diluted) | $8.61 |
| Shares Outstanding (Basic) | 872.70M |
| Shares Outstanding (Diluted) | 883.20M |
Key Highlights
- 1Divestiture of Sikorsky Aircraft business to Lockheed Martin on November 6, 2015.
- 2Company operates across four key segments: Otis, UTC Climate, Controls & Security, Pratt & Whitney, and UTC Aerospace Systems.
- 3International sales accounted for 62% of total segment sales in 2015, indicating a strong global presence.
- 4Significant investment in Research and Development (R&D) of $2.3 billion in 2015, with an additional $1.5 billion in contract R&D for aerospace businesses.
- 5Pratt & Whitney is developing the PurePower® PW1000G Geared TurboFan engine, selected for several new aircraft models, signaling future growth potential in aerospace.
- 6Total backlog at year-end 2015 was substantial, with Pratt & Whitney holding $52.5 billion and UTC Aerospace Systems holding $11.5 billion, indicating strong future revenue visibility.
- 7The company is actively engaged in share repurchases, with a $12 billion authorization and $6 billion in accelerated share repurchases completed in Q4 2015.