United Technologies Corporation
|Traded as||NYSE: UTX
Dow Jones Industrial Average Component
S&P 500 Component
|Predecessor(s)||United Aircraft Corporation|
|Headquarters||Hartford, Connecticut, United States|
|Key people||Louis R. Chênevert (Chairman and CEO); Frederick Rentschler, founder|
|Revenue||US$ 58.190 billion (2011)|
|Operating income||US$ 8.099 billion (2011)|
|Net income||US$ 5.374 billion (2011)|
|Total assets||US$ 61.452 billion (2011)|
|Total equity||US$ 22.820 billion (2011)|
United Technologies Corporation (UTC) is an American multinational conglomerate headquartered in the United Technologies Building in Hartford, Connecticut. It researches, develops, and manufactures high-technology products in numerous areas, including aircraft engines, helicopters, 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 systems and military helicopters, most notably the UH-60 Black Hawk helicopter. Louis R. Chênevert is the current CEO. United Technologies' headquarters operations are located in the United Technologies Building in Hartford, Connecticut.
1970s and 1980s
In 1974, Harry Gray left Litton Industries to become the CEO of United Aircraft. 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. (The change became official on 1 May 1975.) The diversification was partially to balance civilian business against any overreliance on military business. UTC became a mergers and acquisitions (M&A)–focused organization, with various forced takeovers of unwilling smaller corporations. The next year (1976), UTC forcibly acquired Otis Elevator. In 1979, Carrier Refrigeration and Mostek were acquired; the Carrier deal was forcible, while the Mostek deal was a white knight move against hostile takeover designs by Gould.
Being a defense contractor always carries inherent difficulties for a for-profit organization. First, there is the concern that taxpayers' money must never be wasted by allowing the government's private sector contractors to have "excess profits"—a reasonable abstract principle, but one quite hard to define operationally from moment to moment and year to year. Second, there is the concern of warmongering—that any person or corporation with a financial interest in encouraging warfare presents a perpetual risk of inciting violence. Third, being in the military materiel business, warmongering or no, exposes a for-profit organization to a particularly punishing variant of the business cycle: not only the normal bull and bear markets, but also the boom/bust peaks and valleys of wartime and peacetime.
At one point the military portion of UTC's business, whose aforementioned 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. Although M&A activity was not new to United Aircraft (UATC was somewhat of an octopus in its own right circa 1930), 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.
Mostek was sold in 1985 to the French electronics company Thomson.
In 2003, UTC entered the fire and security business by purchasing Chubb Security.
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 March 2008, UTC announced it had made a $2.63 billion bid to acquire Diebold, a Canton, Ohio based manufacturer of banking and voting machines. In September 2008 UTC's chairman commented that the acquisition was less than likely to happen. Diebold has since rejected the $2.63 billion buyout bid. The ATM and voting machine maker has called the United Technologies bid inadequate.
On 9–10 December 2009, it was announced that UTC would acquire a 49.5% stake in Carpinteria, CA and London, UK based Clipper Windpower by purchasing 84.3 million new shares and 21.8 million shares from current shareholders for £126.5 million or $206 Million US. Clipper has stated that this equity purchase "will significantly strengthen its balance sheet and enable it to enhance its operations and pursue its strategic initiatives", “This is a transformational transaction for Clipper, bringing substantial capital from a strategic investor who is one of the world’s leading industrial technology companies” said Doug Pertz, President and CEO of Clipper. “We welcome the investment from UTC and their confidence in Clipper’s technology and business opportunities.”.
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.
On Monday, 18 October 2010, UTC agreed with Clipper to acquire the rest of the company.
In June 2012, it was discovered that UTC sold military technology to the Chinese. For pleading guilty to violating the Arms Export Control Act and making false statements, United Technologies and its subsidiaries were fined $75 million.
- Carrier: A global manufacturer of heating, ventilation, air conditioning, and refrigeration systems.
- Clipper Windpower: A maker of wind turbines. On March 15, 2012, United Technologies announced intent to sell Clipper.
- 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 two industry leaders, Hamilton Sundstrand and Goodrich in 2012.
- Otis: Manufacturer, installer, and servicer of elevators, escalators, and moving walkways.
- Pratt & Whitney: Designs and builds aircraft engines, gas turbines, and rocket engines.
- Sikorsky Aircraft: Maker of helicopters for commercial, industrial, institutional, government, and military uses.
- UTC Fire & Security: 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.
- 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.
- 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, sold to Mitsubishi Heavy Industry in May 2013 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
- 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.
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.
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, opening fall 2011.
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  including manganese, nickel, chromium and related compounds.
- "Annual Report 2011". UTC. Retrieved 16 March 2012.
- "UTC Facts". UTC. Retrieved 31 December 2012.
- "Contact." United Technologies Corporation. Retrieved on 7 January 2011. "Mailing address United Technologies Corporation United Technologies Building Hartford, CT 06101."
- CorpWatch : United Technologies
- "United Technologies elects Chenevert CEO". Reuters. 9 April 2008. Retrieved 2008-04-09.
- Fernandez 1983.
- Fernandez 1983, p. 246.
- Fernandez 1983, pp. 246–251.
- Fernandez 1983, pp. 260–264.
- Holland 1989.
- Schweizer acquisition press release
- Hawk Works opening article from Global Security web site
- UTC's bid for Diebold
- Diebold Falls on United Technologies Comment on Bid (Update2)
- "Diebold rejects $2.63 billion buyout bid - Business - US business - msnbc.com". MSNBC. 2008-03-03. Retrieved 2012-02-16.
- Clipper Windpower Gets GBP126.5 Million Investment From United Tech
- Clipper says UTC to buy 49.5 percent stake
- United Technology flies to the rescue of Clipper Windpower
- UTC aims to take 49.5% of Clipper Windpower
- "Clipper Windpower Press Release". Clipperwind.com. 2009-12-09. Retrieved 2012-02-16.
- [dead link]
- UTC to acquire remaining interest in Clipper Windpower North American Windpower, 18 October 2010. Retrieved: 23 October 2010.
- "United Technologies to acquire Goodrich in USD 18.4 bn deal". September 23, 2011.
- "United Technologies sent military copter tech to China". June 28, 2012.
- Winter, Michael (June 28, 2012). "United Technologies sold China software for attack copter". USA Today.
- Nirappil, Fenit (February 12, 2013). "ClearEdge Power finalizes acquisition of UTC Power". The Oregonian. Retrieved 24 February 2013.
- 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
- 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.
- Top Contributors to Federal Candidates and Parties: Defense
- Drinkard, Jim (2005-01-17). "Donors get good seats, great access this week". USA Today. Retrieved 2008-05-25.
- "Financing the inauguration". USA Today. 2005-01-16. Retrieved 2008-05-25.
- "Toxic 100 Index". Political Economic Research Institute. Retrieved 2008-11-26.
- "United Technologies". Political Economic Research Institute. Retrieved 2008-11-26.
- UTC - Community involvement, grants, financial support and support of the arts - hvac, fuel cells, helicopters, security systems, elevators
- 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.