Summary
United Technologies Corporation (UTC) is undergoing significant transformation, highlighted by its impending merger with Raytheon Company and the planned separation of its Otis and Carrier businesses into independent entities. The merger with Raytheon, an all-stock transaction, is expected to close in early Q2 2020, creating Raytheon Technologies Corporation. Concurrently, Otis and Carrier are slated for spin-offs, also anticipated in early Q2 2020, positioning UTC to focus primarily on its aerospace businesses: Pratt & Whitney and Collins Aerospace Systems. Investors should note the strategic shift towards a more focused aerospace and defense company. While the separation and merger present opportunities for synergy and strategic alignment, they also introduce complexities and execution risks. The company's business segments—Otis (elevators/escalators), Carrier (HVAC/refrigeration), Pratt & Whitney (aircraft engines), and Collins Aerospace Systems (aerospace products/services)—collectively serve diverse global markets, with aerospace and commercial sales representing a substantial portion of revenue. International sales constitute a significant 60% of net sales, underscoring the global nature of its operations.
Financial Highlights
56 data points| Revenue | $45.35B |
| R&D Expenses | $2.45B |
| SG&A Expenses | $3.71B |
| Operating Expenses | $40.76B |
| Operating Income | $4.91B |
| Interest Expense | $1.59B |
| Net Income | $5.54B |
| EPS (Basic) | $6.48 |
| EPS (Diluted) | $6.41 |
| Shares Outstanding (Basic) | 854.80M |
| Shares Outstanding (Diluted) | 863.90M |
Key Highlights
- 1Impending merger with Raytheon Company, creating Raytheon Technologies Corporation, expected to close in early Q2 2020.
- 2Planned separation of Otis and Carrier businesses into independent companies, also expected in early Q2 2020.
- 3Strategic shift towards becoming a more focused aerospace and defense entity post-transactions.
- 4Four primary business segments: Otis, Carrier, Pratt & Whitney, and Collins Aerospace Systems.
- 5Significant international revenue, accounting for 60% of net sales in 2019.
- 6Pratt & Whitney is a key supplier of aircraft engines for commercial and military markets, including the F135 engine for the F-35 program.
- 7Collins Aerospace Systems provides a broad range of technologically advanced aerospace products and aftermarket services.