Wikipedia

United Technologies

United Technologies Corporation(UTC) was an Americanmultinationalconglomerateheadquartered inFarmington, Connecticut.[1]It researched, developed, and manufactured products in numerous areas, includingaircraft engines,aerospace systems,HVAC,elevatorsandescalators,fire andsecurity,building automation, and industrial products, among others. UTC was also a large military contractor, getting about 10% of its revenue from the U.S. government.[4][5]In April 2020, UTC merged with theRaytheon Companyto form Raytheon Technologies, later renamedRTX Corporation.[6]

United Technologies Corporation
Company typePublic
NYSE:UTX
IndustryConglomerate
PredecessorUnited Aircraft
FoundedSeptember 26, 1934(1934-09-26)(as United Aircraft Corporation)
May 1, 1975(1975-05-01)(as United Technologies Corporation)
FounderFrederick Rentschler(for the United Aircraft line)
DefunctApril 3, 2020(2020-04-03)
FateMerged withRaytheonto formRTX;OtisandCarrierspun off.
Successors
Headquarters
Farmington, Connecticut
,
United States[1]
Area served
Worldwide
Key people
RevenueUS$71.31 Billion (2019)
This article is about the defunct company prior to its merger withRaytheon Company.For the post-merger company, seeRTX Corporation.

History

edit

Pre-1970s

edit
Main article:United Aircraft

1970s and 1980s

edit

In 1974,Harry Jack GrayleftLitton Industriesto 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 numeroushigh techfields 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 amergers and acquisitions(M&A)–focused organization, with various forced takeovers of unwilling smaller corporations.[7]The next year (1976), UTC forcibly acquiredOtis Elevator.[9]In 1979,Carrier RefrigerationandMostekwere acquired;[10]the Carrier deal was forcible, while the Mostek deal was awhite knightmove against hostile takeover designs byGould.

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 companyThomson.[citation needed]

In 2007, UTC opened the Hawk Works, a Rapid Prototyping and Military Derivatives Completion Center (RPMDCC) located west of theElmira-Corning Regional AirportinBig Flats, New York.[11]

In March 2008, UTC made a $2.63 billion bid to acquireDiebold,aCanton, Ohiobased manufacturer of banking and voting machines. Diebold rejected the buyout bid as inadequate.[12]

In April 2010, UTC announced that it was investing €15 million ($20 million) to set up the United Technologies Research Centre Ireland atUniversity College Cork’s Tyndall National Institute which will carry out research on energy and security systems.[13]

In June 2012, it was discovered that UTC sold military technology to the Chinese.[14]For pleading guilty to violating theArms Export Control Actand making false statements, United Technologies and its subsidiaries were fined $75 million.[15]

In February 2013,UTC Powerwas sold toClearEdge Power.[16]

In October 2014,Toshibaand United Technologies made a deal to expand their joint venture outsideJapan.[17]

In February 2016, UTC subsidiaryCarrier Air Conditionerannounced to employees at its Indianapolis and Huntington plants, 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."[18]In December, Carrier agreed to keep the Indianapolis plant open, keeping 700 jobs in Indianapolis.[19]The plant in Huntington, Indiana would still close their doors, leaving 700 employees jobless.[20]

In June 2019, United Technologies announced the intention to merge with defense contractorRaytheonto form Raytheon Technologies Corporation. The combined company, valued at more than $100 billion after planned spinoffs, would be the world's second-largest aerospace-and-defense company by sales behind Boeing.[21]Although UTC was the nominal survivor, the merged company was headquartered at legacy Raytheon's former base inWaltham, Massachusetts.[22]The merger was completed in April 2020.[6]

In March 2020, United Technologies Corporation announced the separations ofCarrier GlobalandOtis Worldwide.[23]

Executive history

edit

In April 2008,Louis ChênevertsucceededGeorge Davidas the company'schief executive officer(CEO).[24][2]Chênevert served until 2014, when he was succeeded byGregory Hayes.[2]

Thechief financial officer's (CFO) position was held by Gregory Hayes until 2014, when he succeeded Louis Chênevert as CEO.[2] Thechairman of the board of directors(chairperson) position went to Louis Chênevert, then the company's CEO, in January 2010, succeeding George David.[24]

Finances

edit

For the fiscal year 2017, United Technologies reported earnings of US$4.552 billion, with an annual revenue of US$59.837 billion, an increase of 4.5% over the previous fiscal cycle. United Technologies shares traded at over $114 per share, and its market capitalization was valued at US$98.6 billion in October 2018.[25]UTC ranked No. 51 in the 2018Fortune 500list of the largest United States corporations by total revenue.[26]

Year Revenue
in mil. USD$ 		Net income
in mil. USD$ 		Total Assets
in mil. USD$ 		Price per Share
in USD$ 		Employees
2005 42,725 3,069 45,925 38.42
2006 47,829 3,732 47,141 46.56
2007 55,716 4,224 54,575 54.94
2008 59,119 4,689 56,837 49.91
2009 52,425 3,829 55,762 44.36
2010 52,275 4,373 58,493 58.86
2011 55,754 4,979 61,452 67.41
2012 57,708 5,130 89,409 67.87
2013 56,600 5,721 90,594 87.83 212,000
2014 57,900 6,220 91,206 101.42 211,000
2015 56,098 7,608 87,484 99.09 197,000
2016 57,244 5,055 89,706 96.15 205,000
2017 59,837 4,552 96,920 114.01 205,000

Business units

edit
Hartford's Gold Building served as UTC's headquarters from 1975 to 2015[27]
Otis Elevator's former headquarters served as UTC's headquarters from 2015 to 2020
  • Otis Elevator Company:Manufacturer, installer, and servicer of elevators, escalators, and moving walkways.
  • Pratt & Whitney:Designs and builds aircraft engines and gas turbines.[24]
  • Collins Aerospace: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. Collins Aerospace was formed following UTC's acquisition ofRockwell Collinsin 2018, by combining the newly acquired business with UTC Aerospace Systems, which itself was the result of a 2012 merger ofHamilton Sundstrandandthe Goodrich Corporation.
  • UTC Climate, Controls & Security:[28]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.[33]

Acquisitions

edit

Former businesses

edit
  • Kidde:[47]a leading manufacturer of residential smoke alarms, carbon monoxide (CO) alarms and fire extinguishers. Now a subsidiary of UTC spin-off,Carrier
  • Clipper Windpower:A maker ofwind turbines.In December 2010 Clipper Windpower was acquired by United Technologies Corporation. It was sold in 2012 to Platinum Equity LLC.
  • Hamilton Standard:which became part ofHamilton Sundstrand,now part ofUTC Aerospace Systems.
  • Hamilton Test Systems, anArizona-based developer of vehicle emission test equipment, which was sold to Georgetown Partners in December 1990, which renamed it Envirotest Systems Corp. It is now part of Environmental Systems Products Holdings (ESPH).
  • Inmont: paint and resins, which was later sold toBASF
  • Mosteksemiconductor: from 1979 to 1985
  • Norden Systems:a corporation that manufactures electronics systems for military use, now a part ofNorthrop Grumman.Acquired in 1958, sold in 1994.[48]
  • Pratt & Whitney Rocketdyne:sold in June 2013 and now part ofGenCorp
  • Sikorsky Aircraft:maker of helicopters for commercial, industrial, institutional, government, and military use;[24]now a part ofLockheed Martin[49]
  • Turbo Power and Marine Systems, Inc: a manufacturer of simple-cycle electrical power generation units of 25 MW and 50 MW. Renamed Pratt & Whitney Power Systems in 2000,[51]sold toMitsubishi Heavy Industryin May 2013[52]and is now a MHI group company named PW Power Systems, Inc.
  • UT Automotive: now a division ofLear Corporation
  • UT Communications: bought Lexar and Stromberg Carlson, makers of telephone equipment, which were later sold toMemorexin 1985.
  • UTC Power:a manufacturer of distributed power generation systems and fuel cells for commercial, transportation, and space and defense applications. It was sold toClearEdge Powerin February 2013.

Political contributions

edit

During the2004 election cycle,UTC was the sixth largest defense industry donor to political campaigns, contributing a total of $789,561; 64% went to Republicans. In the2006 election cycle,UTC was again the sixth largest donor to federal candidates and political parties; 53% of the funds were contributed to Republicans, 35% percent to Democrats;[53]

In 2005, the firm was among 53 entities that contributed the maximum of $250,000 to the second inauguration of PresidentGeorge W. Bush.[54][55]

Philanthropy

edit

In 1981, a contribution from UTC made possible the exhibition "Paris/Magnum: Photographs 1935–1981", featuring photographs ofParistaken by photographers ofMagnum Photos,the agency founded in 1947 byRobert Capa,George Rodger,Henri Cartier-Bresson,William Vandivert,andDavid Seymour.A volume of the same title, with text byIrwin Shawand an introduction byInge Morath,was also published in 1981.

UTC is the sponsor of the exhibition "Aphrodite and the Gods of Love" atBoston's Museum of Fine Artsthat opened in fall 2011.[56]

The firm and its subsidiaries are major contributors to museums such as theNew England Air Museum.[57][58]

In April 2015, UTC signed an education partnership agreement with theChina Friendship Foundation for Peace and Development,[59]aunited frontorganization under the control of theChinese People's Association for Friendship with Foreign Countries.[60][61]

Environmental record

edit

Researchers at theUniversity of Massachusetts Amhersthave identified UTC. as the 38th-largest corporate producer ofair pollution in the United Statesas of 2008. UTC released roughly 110,000 pounds (50,000 kg) of toxic chemicals annually into the atmosphere[62]includingmanganese,nickel,chromiumand related compounds.[63][64]

In the 2016University of Massachusetts AmherstToxic 100 Air Polluters Index, UTC was ranked 9th by a toxicity population exposure score. It was also reported they release 60,000 pounds (27,200 kg) of toxins into the air.[65]

See also

edit

References

edit
  1. ^ab"Locations".utc.com.Archived fromthe originalon February 5, 2016.RetrievedFebruary 1,2016.
  2. ^abcdNordqvist, Joseph (November 24, 2014)."Louis Chenevert stepping down as CEO of United Technologies, being replaced by Gregory J. Hays".Market Business News.RetrievedJanuary 18,2020.
  3. ^"UTC Names Gregory J. Hayes As President And Chief Executive Officer".CNN.November 24, 2014. Archived fromthe originalon November 29, 2014.RetrievedNovember 24,2014.
  4. ^Ehrenfreund, Max (December 5, 2016)."CEO: United Tech. considered federal contracts in decision to keep Indiana jobs in deal with Trump".The Washington Post.RetrievedJanuary 2,2016.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 fromthe originalon July 4, 2015.RetrievedJuly 3,2015.
  6. ^ab"United Technologies and Raytheon Complete Merger of Equals Transaction".www.rtx.com(Press release). Raytheon Technologies. April 3, 2020.RetrievedApril 3,2020.
  7. ^abcdeFernandez 1983.
  8. ^Fernandez 1983,p. 246.
  9. ^Fernandez 1983,pp. 246–251.
  10. ^Fernandez 1983,pp. 260–264.
  11. ^John Pike."Sikorsky opens HAWK WORKS™ completion center for military helicopters".GlobalSecurity.org.RetrievedJuly 3,2015.
  12. ^"Diebold rejects $2.63 billion buyout bid".NBC News.March 3, 2008.RetrievedFebruary 16,2012.
  13. ^Fiachra O Cionnaith (April 27, 2010)."US firm to create almost 100 jobs with 'clean energy research' centre".Irish Examiner.RetrievedJuly 2,2019.
  14. ^"United Technologies sent military copter tech to China".Reuters.June 28, 2012.
  15. ^Winter, Michael (June 28, 2012)."United Technologies sold China software for attack copter".USA Today.
  16. ^Nirappil, Fenit (February 12, 2013)."ClearEdge Power finalizes acquisition of UTC Power".The Oregonian.RetrievedFebruary 24,2013.
  17. ^"Toshiba and United Technologies ink deal to expand outside Japan"(Press release).Reuters.October 16, 2014.
  18. ^Mann, Ted (February 13, 2016)."Viral Video Over Plant Closure Gets Attention in GOP Debate".The Wall Street Journal.RetrievedMarch 3,2016.
  19. ^"UTC CEO says no 'quid pro quo' on keeping Indiana plant open".CNBC.December 5, 2016.RetrievedDecember 15,2016.
  20. ^"UTEC Leaving Huntington for Mexico at Cost of 700 Jobs".
  21. ^Lombardo, Cara; Cameron, Doug (June 10, 2019)."United Technologies Strikes Deal to Merge With Raytheon".Wall Street Journal.ISSN0099-9660.RetrievedJune 10,2019.
  22. ^Singer, Stephen (June 9, 2019)."United Technologies says it's merging with defense contractor Raytheon and moving headquarters to Boston area from Connecticut".Hartford Courant.RetrievedJune 10,2019.
  23. ^"United Technologies Board Of Directors Approves Separation Of Carrier And Otis And Declares Spin Off Distribution Of Carrier And Otis Shares".StreetInsider.com.RetrievedMarch 12,2020.
  24. ^abcdeGershon, Eric (January 1, 2010)."UTC Boss Looks To Make His Mark".Hartford Courant.Vol. CLXXIV, no. 1. Hartford, Connecticut: The Hartford Courant Company. pp. A1, A8 – via Newspapers.com.The main citation is for Page A1; Page A8 appearsin this clipping.
  25. ^"United Technologies Financial Statements 2005-2018 | UTX".www.macrotrends.net.RetrievedOctober 30,2018.
  26. ^"Fortune 500 Companies 2018: Who Made the List".Fortune.Archived fromthe originalon January 15, 2019.RetrievedNovember 10,2018.
  27. ^"Without Fanfare, UTC Relocates World Headquarters to a Farmington Office Park".Hartford Courant.Hartford, Connecticut. September 4, 2015.RetrievedAugust 15,2017.
  28. ^"United Technologies Announces Organization and Leadership Changes To Commercial Businesses".www.utc.com.Archived fromthe originalon July 10, 2018.RetrievedMay 23,2016.
  29. ^"NORESCO".RetrievedJune 10,2019.
  30. ^Carrier Corporation (November 21, 2008)."Carrier Acquires Noresco to Expand Energy Solutions Capabilities".RetrievedJuly 3,2015.
  31. ^"GFI Energy Ventures LLC Completes Sale of NORESCO to Carrier".Bloomberg.
  32. ^"United Technologies decides to halt sale of Chubb fire unit".The Gazette.RetrievedOctober 7,2019.
  33. ^"Home - United Technologies Research Center".RetrievedJuly 3,2015.
  34. ^Schweizer acquisition press releaseArchivedApril 10, 2008, at theWayback Machine
  35. ^"Carrier Acquires Noresco to Expand Energy Solutions Capabilities".Carrier Corporation. November 21, 2008. Archived fromthe originalon December 30, 2013.RetrievedApril 25,2013.
  36. ^Clipper Windpower Gets GBP126.5 Million Investment From United Tech[permanent dead link‍]
  37. ^"Clipper says UTC to buy 49.5 percent stake".Reuters.December 10, 2009.RetrievedJuly 3,2015.
  38. ^Terry Macalister (December 10, 2009)."United Technologies Corporation flies to the rescue of Clipper Windpower".The Guardian.RetrievedJuly 3,2015.
  39. ^UTC aims to take 49.5% of Clipper WindpowerArchivedMarch 5, 2012, at theWayback Machine
  40. ^UTC to acquire remaining interest in Clipper WindpowerNorth American Windpower,October 18, 2010. Retrieved: October 23, 2010.
  41. ^"United Technologies to acquire Goodrich in USD 18.4 bn deal".September 23, 2011. Archived fromthe originalon June 5, 2012.RetrievedSeptember 25,2011.
  42. ^"UTC Building & Industrial Systems Completes CIAT Acquisition".Archived fromthe originalon February 20, 2015.RetrievedJune 10,2019.
  43. ^"Lockheed Martin Completes Acquisition of Sikorsky Aircraft · Lockheed Martin".lockheedmartin.com.RetrievedFebruary 18,2016.
  44. ^"United Technologies To Acquire Rockwell Collins For $30 Billion"(Press release). United Technologies. September 4, 2017.
  45. ^Craver, Richard (November 27, 2018)."UTC completes $30B deal for Rockwell Collins, announces three-way split of company".Winston-Salem Journal.
  46. ^Mattioli, Dana; Gryta, Thomas (November 26, 2018)."United Tech to Break Itself Into Three Companies".Wall Street Journal.RetrievedJune 10,2019– via www.wsj.com.
  47. ^"Kidde Fire Safety Products: Shop Smoke Alarms, Carbon Monoxide Detectors, Fire Extinguishers".Kidde Home Safety.RetrievedJune 10,2019.
  48. ^"Company History".Norden Retirees Club.RetrievedJune 3,2021.
  49. ^"Media - Lockheed Martin - Releases".Media - Lockheed Martin.RetrievedOctober 7,2019.
  50. ^"PZL MIELEC".www.pzlmielec.pl.RetrievedOctober 7,2019.
  51. ^Kinsman, Susan E. (December 17, 2000)."A THIRST FOR JUICE".courant.com.RetrievedOctober 7,2019.
  52. ^Dowling, Brian (2013-05-17)"Tokyo Manufacturer Closes On Purchase Of Pratt Land-Turbine Business".The Hartford Courant.Retrieved 2013-08-20.
  53. ^"Agribusiness".OpenSecrets.Archived fromthe originalon April 25, 2008.
  54. ^Drinkard, Jim (January 17, 2005)."Donors get good seats, great access this week".USA Today.RetrievedMay 25,2008.
  55. ^"Financing the inauguration".USA Today.January 16, 2005.RetrievedMay 25,2008.
  56. ^"Press Release: Aphrodite and the Gods of Love at Museum of Fine Arts, Boston"(PDF).Museum of Fine Arts, Boston. August 9, 2011. Archived fromthe original(PDF)on September 19, 2011.RetrievedAugust 27,2011.
  57. ^Schmidt, Christine (September 14, 2017)."With $2 Million Renovation, the New England Air Museum Entices New Visitors".Hartford Courant.RetrievedJune 29,2019.
  58. ^"Corporate Partnership Program".New England Air Museum.RetrievedJune 29,2019.
  59. ^"United Technologies and China Friendship Foundation for Peace and Development Announce Education Partnership".www.3blmedia.com.April 2, 2015.RetrievedSeptember 19,2020.
  60. ^Cole, J. Michael; Hsu, Szu-Chien (July 30, 2020).Insidious Power: How China Undermines Global Democracy.Eastbridge Books. p. 54.ISBN978-1-78869-213-7.Archivedfrom the original on September 24, 2020.RetrievedSeptember 19,2020.
  61. ^"Partners".Asia Society.Archivedfrom the original on September 29, 2017.RetrievedSeptember 19,2020.
  62. ^"Toxic 100 Index".Political Economy Research Institute.Archived fromthe originalon July 27, 2010.RetrievedNovember 26,2008.
  63. ^"United Technologies".The Right-to-Know Network.OMB Watch/Political Economy Research Institute.Archived fromthe originalon December 21, 2008.RetrievedNovember 26,2008.
  64. ^"United Technologies and the Environment".MNN -Mother Nature Network.RetrievedApril 17,2017.
  65. ^Baylor, Matthew (October 26, 2016)."Toxic 100 Air Polluters Index: 2016 Report, Based on 2014 Data)".PERI.RetrievedApril 17,2017.

Bibliography

edit
edit
Wikimedia Commons has media related toUnited Technologies.
Retrieved from "https://en.wikipedia.org/w/index.php?title=United_Technologies&oldid=1256986589"