10-QPeriod: Q3 FY2010

RTX Corp Quarterly Report for Q3 Ended Sep 30, 2010

Filed October 25, 2010For Securities:RTX

Summary

United Technologies Corporation (UTC) reported solid financial results for the nine months ended September 30, 2010, with net income attributable to common shareowners increasing by 15% to $3.17 billion compared to the same period in 2009. Diluted earnings per share (EPS) also saw a significant rise to $3.43. The company demonstrated strong operating cash flow generation, improving by 9% year-over-year to $4.23 billion, which allowed for substantial investments in acquisitions, notably the GE Security business for approximately $1.8 billion, and continued share repurchases. While the global economic recovery remained mixed, UTC's diversified business segments, including aerospace and commercial businesses, showed resilience. Revenues experienced a modest increase of 1.8% year-over-year for the nine-month period, driven by organic growth in segments like Carrier and Sikorsky, and a 1% contribution from acquisitions. The company also actively managed its debt, issuing new long-term notes while repaying existing ones, resulting in a slightly increased but manageable debt-to-capitalization ratio of 36%. Overall, UTC's performance indicates a company effectively navigating the economic landscape through strategic acquisitions, operational efficiency, and robust cash generation.

Financial Highlights

47 data points
Beta

Revenue

$13.62B

29.0% Gross Margin

Net Income

$1.20B

8.8% Net Margin

EPS (Diluted)

$1.30

Total Assets

$60.65B

Free Cash Flow

$1.68B

Financial Statements
Beta
Revenue$13.62B
Cost of Revenue$7.12B
Gross Profit$3.95B
R&D Expenses$433.00M
SG&A Expenses$1.48B
Operating Expenses$11.58B
Operating Income$1.93B
Interest Expense$182.00M
Net Income$1.20B
EPS (Basic)$1.32
EPS (Diluted)$1.30
Shares Outstanding (Basic)905.60M
Shares Outstanding (Diluted)919.50M

Key Highlights

  • 1Net income attributable to common shareowners increased by 15% to $3.17 billion for the nine months ended September 30, 2010.
  • 2Diluted Earnings Per Share (EPS) rose to $3.43 for the nine months ended September 30, 2010.
  • 3Operating cash flow increased by 9% to $4.23 billion for the nine months ended September 30, 2010.
  • 4The company made significant investments in acquisitions, totaling approximately $2.6 billion in the first nine months of 2010, including the acquisition of GE Security business.
  • 5Total revenues for the nine months ended September 30, 2010, increased by 1.8% to $39.51 billion.
  • 6Debt-to-total capitalization stood at 36% as of September 30, 2010.
  • 7The company continued its share repurchase program, repurchasing $1.65 billion worth of common stock in the first nine months of 2010.

Frequently Asked Questions

Revenue growth for the first nine months of 2010 was driven by organic growth in segments like Carrier and Sikorsky, and a 1% contribution from acquisitions, notably the GE Security business. This growth was partially offset by organic revenue contraction in some segments like Otis.

UTC generated strong operating cash flow of $4.23 billion, which supported its investing activities. The company issued $2.25 billion in long-term debt while also repaying $1.8 billion in existing debt. The debt-to-total capitalization ratio was 36% as of September 30, 2010. They also maintained access to commercial paper markets and had $2.5 billion in available credit facilities.

The company invested approximately $2.6 billion in business acquisitions during the first nine months of 2010. The most significant were the acquisition of the GE Security business for approximately $1.8 billion and an equity stake in Clipper Windpower Plc for approximately $270 million.

Diluted EPS increased to $3.43 for the nine months ended September 30, 2010, up from $2.97 in the same period of 2009, reflecting strong profitability and effective cost management.