United Technologies

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United Technologies Corporation
Public
Traded as NYSE: UTX
DJIA Component
S&P 100 Component
S&P 500 Component
Industry Conglomerate
Predecessor United Aircraft Corporation
Founded 1934; 84 years ago (1934)
Founders Frederick Rentschler
Headquarters Farmington, Connecticut, United States[1]
Area served
 Worldwide
Key people
 Gregory J. Hayes
(President, Chairman and CEO)[2]
Revenue Increase US$59.837 billion (2017)[3]
Increase US$8.672 billion (2017)[3]
Decrease US$4.552 billion (2017)[3]
Total assets Increase US$96.920 billion (2017)[3]
Total equity Increase US$29.610 billion (2017)[3]
Number of employees
 202,797 (2017)[3]
Website www.utc.com

United Technologies Corporation (UTC) is an American multinational conglomerate headquartered in Farmington, Connecticut.[1] It researches, develops, and manufactures products in numerous areas, including aircraft engines, aerospace systems, HVAC, elevators and escalators, fire and security, building systems, and industrial products, among others. UTC is also a large military contractor, getting about 10% of its revenue from the U.S. government.[4][5] Gregory J. Hayes is the CEO and chairman.[6]

History[edit]

Pre-1970s[edit]

Main article: United Aircraft

1970s and 1980s[edit]

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[edit]

UTC acquired Sundstrand Corporation in 1999, and merged it into UTC's Hamilton Standard unit to form Hamilton Sundstrand.

2000s[edit]

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.[11]

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, a Rapid Prototyping and Military Derivatives Completion Center (RPMDCC) located west of the Elmira-Corning Regional Airport in Big Flats, New York.[12]

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, an energy service company.[15][16]

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[edit]

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 made a deal to expand their joint venture outside Japan.[27]

In January 2015, UTC Building & Industrial Systems completed the acquisition of CIAT Group, a leading HVAC manufacturing company in France.[28] In November, Lockheed Martin completed its $9.0 billion acquisition of Sikorsky Aircraft.[29]

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.” [30] In December, Carrier agreed to keep the Indianapolis plant open, keeping 1,100 jobs in Indianapolis.[31]

On September 4, 2017, proposed to acquire Rockwell Collins in cash and stock for $23 billion, $30 billion including Rockwell Collins' net debt, for $500+ million of synergies expected by year four.[32]

Business units[edit]

Hartford's Gold Building served as UTC's headquarters from 1975 to 2015[33]
Otis Elevator's former headquarters serve as UTC's headquarters since 2015
  • Otis Elevator Company: Manufacturer, installer, and servicer of elevators, escalators, and moving walkways.
  • Pratt & Whitney: Designs and builds aircraft engines and gas turbines.
  • 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.
  • UTC Climate, Controls & Security:[34] 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.[39]

Former businesses[edit]

Political contributions[edit]

During the 2004 election cycle, UTC was the sixth largest defense industry donor to political campaigns, contributing a total of $789,561. Sixty-four percent 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. Thirty-five percent of those contributions went to Democrats; 53% of the funds were contributed to Republicans.[44]

In 2005, United Technologies was among 53 entities that contributed the maximum of $250,000 to the second inauguration of President George W. Bush.[45][46]

Philanthropy[edit]

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 the exhibition "Aphrodite and the Gods of Love" at Boston's Museum of Fine Arts that opened in fall 2011.[47]

UTC and its subsidiaries are major contributors to museums such as the New England Air Museum.[48]

Environmental record[edit]

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[49] including manganese, nickel, chromium and related compounds.[50][51]

In the 2016 University of Massachusetts Amherst Toxic 100 Air Polluters Index, UTC was ranked 9th by a toxicity population exposure score. It was also reported they release 60,000 pounds of toxins into the air, the second lowest amount by the top 10 listed companies.[52]

See also[edit]

References[edit]

  1. ^ a b "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. ^ a b c d e f "United Technologies Annual Report 2017" (PDF). UTC. Retrieved 23 May 2018. 
  4. ^ Ehrenfreund, Max (5 December 2016). "CEO: United Tech. considered federal contracts in decision to keep Indiana jobs in deal with Trump". The Washington Post. Retrieved 2 January 2016. I also know that about 10 percent of our revenue comes from the U.S. government," [United Technologies chief executive Greg Hayes] said. 
  5. ^ "CorpWatch : United Technologies". Archived from the original on July 4, 2015. Retrieved July 3, 2015. 
  6. ^ "UTC Names Gregory J. Hayes As President And Chief Executive Officer". CNN. November 24, 2014. Archived from the original on November 29, 2014. Retrieved November 24, 2014. 
  7. ^ a b c d e Fernandez 1983.
  8. ^ Fernandez 1983, p. 246.
  9. ^ Fernandez 1983, pp. 246–251.
  10. ^ Fernandez 1983, pp. 260–264.
  11. ^ Schweizer acquisition press release Archived April 10, 2008, at the Wayback Machine.
  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. 
  15. ^ "Archived copy". Archived from the original on December 30, 2013. Retrieved April 25, 2013. 
  16. ^ [1]
  17. ^ Clipper Windpower Gets GBP126.5 Million Investment From United Tech[permanent dead link]
  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 Archived March 5, 2012, at the Wayback Machine.
  21. ^ [2][dead link]
  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. ^ UTC Building & Industrial Systems Completes CIAT Acquisition
  29. ^ "Lockheed Martin Completes Acquisition of Sikorsky Aircraft · Lockheed Martin". lockheedmartin.com. Retrieved 2016-02-18. 
  30. ^ Mann, Ted (13 February 2016). "Viral Video Over Plant Closure Gets Attention in GOP Debate". The Wall Street Journal. Retrieved 3 March 2016. 
  31. ^ "UTC CEO says no 'quid pro quo' on keeping Indiana plant open". CNBC. 2016-12-05. Retrieved 2016-12-15. 
  32. ^ "United Technologies To Acquire Rockwell Collins For $30 Billion" (Press release). United Technologies. September 4, 2017. 
  33. ^ "Without Fanfare, UTC Relocates World Headquarters to a Farmington Office Park". Hartford Courant. Hartford, Connecticut. 2015-09-04. Retrieved 2017-08-15. 
  34. ^ "United Technologies Announces Organization and Leadership Changes To Commercial Businesses". www.utc.com. Retrieved 2016-05-23. 
  35. ^ NORESCO
  36. ^ Carrier Corporation (November 21, 2008). "Carrier Acquires Noresco to Expand Energy Solutions Capabilities". Retrieved July 3, 2015. 
  37. ^ "GFI Energy Ventures LLC Completes Sale of NORESCO to Carrier". Bloomberg. 
  38. ^ Kidde (US)
  39. ^ "Home - United Technologies Research Center". Retrieved July 3, 2015. 
  40. ^ 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.
  41. ^ 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.
  42. ^ 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
  43. ^ 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.
  44. ^ "Agribusiness". Archived from the original on April 25, 2008. Retrieved July 3, 2015. 
  45. ^ Drinkard, Jim (2005-01-17). "Donors get good seats, great access this week". USA Today. Retrieved 2008-05-25. 
  46. ^ "Financing the inauguration". USA Today. 2005-01-16. Retrieved 2008-05-25. 
  47. ^ "Archived copy" (PDF). Archived from the original (PDF) on September 19, 2011. Retrieved August 27, 2011. 
  48. ^ Matt. "New England Air Museum". Retrieved July 3, 2015. 
  49. ^ "Toxic 100 Index". Political Economic Research Institute. Archived from the original on July 27, 2010. Retrieved November 26, 2008. 
  50. ^ "United Technologies". Political Economic Research Institute. Archived from the original on 2008-12-21. Retrieved 2008-11-26. 
  51. ^ "United Technologies and the Environment". MNN - Mother Nature Network. Retrieved 2017-04-17. 
  52. ^ Baylor, Matthew (2016-10-26). "Toxic 100 Air Polluters Index: 2016 Report, Based on 2014 Data)". PERI. Retrieved 2017-04-17. 

Bibliography[edit]

External links[edit]

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