United Technologies

United Technologies Corporation (UTC) was an American multinational conglomerate headquartered in Farmington, Connecticut.<ref name="Farmington" /> It researched, developed, and manufactured products in numerous areas, including aircraft engines, aerospace systems, HVAC, elevators and escalators, fire and security, 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.<ref>Template:Cite news</ref><ref>Template:Cite web</ref> In April 2020, UTC merged with the Raytheon Company to form Raytheon Technologies, later renamed RTX Corporation.<ref name="mergercomplete">Template:Cite press release</ref>

History

1970s and 1980s

In 1974, Harry Jack Gray left Litton Industries to become the CEO of United Aircraft.<ref name="Fernandez1983">Template:Harvnb.</ref> 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.<ref name="Fernandez1983p246">Template:Harvnb.</ref> (The change became official on May 1, 1975.) The diversification was partially to balance civilian business against any overreliance on military business.<ref name="Fernandez1983"/> UTC became a mergers and acquisitions (M&A)–focused organization, with various forced takeovers of unwilling smaller corporations.<ref name="Fernandez1983"/> The next year (1976), UTC forcibly acquired Otis Elevator.<ref name="Fernandez1983pp246-251">Template:Harvnb.</ref> In 1979, Carrier Refrigeration and Mostek were acquired;<ref name="Fernandez1983pp260-264">Template:Harvnb.</ref> 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.<ref name="Fernandez1983"/> 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.<ref name="Fernandez1983"/>

Mostek was sold in 1985 to the French electronics company Thomson.Template:Citation needed

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.<ref>Template:Cite web</ref>

In March 2008, UTC made a $2.63 billion bid to acquire Diebold, a Canton, Ohio based manufacturer of banking and voting machines. Diebold rejected the buyout bid as inadequate.<ref>Template:Cite web</ref>

In April 2010, UTC announced that it was investing €15 million ($20 million) to set up the United Technologies Research Centre Ireland at University College Cork’s Tyndall National Institute which would carry out research on energy and security systems.<ref>Template:Cite web</ref>

In June 2012, it was discovered that UTC sold military technology to the Chinese.<ref>Template:Cite news</ref> For pleading guilty to violating the Arms Export Control Act and making false statements, United Technologies and its subsidiaries were fined $75 million.<ref>Template:Cite news</ref>

In February 2013, UTC Power was sold to ClearEdge Power.<ref>Template:Cite news</ref>

In October 2014, Toshiba and United Technologies made a deal to expand their joint venture outside Japan.<ref>Template:Cite press release</ref>

In February 2016, UTC subsidiary Carrier Air Conditioner announced 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. "<ref name="Wall Street Journal: Viral Video Over Plant Closure Gets Attention in GOP Debate">Template:Cite news</ref> In December, Carrier agreed to keep the Indianapolis plant open, keeping 700 jobs in Indianapolis.<ref>Template:Cite web</ref> The plant in Huntington, Indiana would still close their doors, leaving 700 employees jobless.<ref>Template:Cite webTemplate:Dead link</ref>

In June 2019, United Technologies announced the intention to merge with defense contractor Raytheon to 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.<ref name="Raytheon merger">Template:Cite news</ref> Although UTC was the nominal survivor, the merged company was headquartered at legacy Raytheon's former base in Waltham, Massachusetts.<ref>Template:Cite web</ref> The merger was completed in April 2020.<ref name="mergercomplete"/>

In March 2020, United Technologies Corporation announced the separations of Carrier Global and Otis Worldwide.<ref>Template:Cite news</ref>

Executive history

In April 2008, Louis Chênevert succeeded George David as the company's chief executive officer (CEO).<ref name=":0" /><ref name="nordqvist 2014" /> Chênevert served until 2014, when he was succeeded by Gregory Hayes.<ref name="nordqvist 2014">Template:Cite web</ref>

The chief financial officer's (CFO) position was held by Gregory Hayes until 2014, when he succeeded Louis Chênevert as CEO.<ref name="nordqvist 2014" /> The chairman of the board of directors (chairperson) position went to Louis Chênevert, then the company's CEO, in January 2010, succeeding George David.<ref name=":0" />

Finances

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.<ref>Template:Cite web</ref> UTC ranked No. 51 in the 2018 Fortune 500 list of the largest United States corporations by total revenue.<ref>Template:Cite web</ref>

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

File:UTCHeadquartersViewFromTheAncientBuryingGround.JPG

Hartford's Gold Building served as UTC's headquarters from 1975 to 2015<ref>Template:Cite news</ref>

File:OtisElevatorCompanyHeadquarters.JPG

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.<ref name=":0" />
  • Pratt & Whitney Canada
• 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 of Rockwell Collins in 2018, by combining the newly acquired business with UTC Aerospace Systems, which itself was the result of a 2012 merger of Hamilton Sundstrand and the Goodrich Corporation.
• UTC Climate, Controls & Security:<ref>Template:Cite web</ref> Makes fire detection and suppression systems, access control systems, and security alarm systems; provides security system integration and monitoring services.
  • Carrier: A global manufacturer of heating, ventilation, air conditioning, and refrigeration systems.
    • NORESCO<ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite news</ref>
  • Chubb:<ref>Template:Cite web</ref> a fire and security systems manufacturer.
• United Technologies Research Center (UTRC): A centralized research facility that supports all UTC business units in developing new technologies and processes.<ref>Template:Cite web</ref>

Acquisitions

• 1999: Sundstrand Corporation, merged into UTC's Hamilton Standard unit to form Hamilton Sundstrand.Template:Citation needed
• 2003, Chubb Security.
• 2004, Schweizer Aircraft Corporation planned to be operated as a wholly owned subsidiary under their Sikorsky Aircraft division.<ref>Schweizer acquisition press release Template:Webarchive</ref>
• 2005, Kidde.
• 2005, Boeing's Rocketdyne division, which was merged into the Pratt & Whitney business unit and renamed Pratt & Whitney Rocketdyne (later sold to Aerojet) and merged into Aerojet Rocketdyne.
• 2008, NORESCO, an energy service company, acquired by UTC's Carrier Corporation division.<ref>Template:Cite web</ref>
• 2009, a 49.5% stake in Clipper Windpower for $206 million.<ref>Clipper Windpower Gets GBP126.5 Million Investment From United TechTemplate:Dead link</ref><ref>Template:Cite news</ref><ref>Template:Cite web</ref><ref>UTC aims to take 49.5% of Clipper Windpower Template:Webarchive</ref> In 2010, UTC agreed with Clipper to acquire the rest of the company.<ref name="utclip">UTC to acquire remaining interest in Clipper Windpower North American Windpower, October 18, 2010. Retrieved: October 23, 2010.</ref>
• 2010 General Electric's security equipment business for US$1.8 billion, to support UTC's Fire & Security unit.<ref name=":0">Template:Cite news The main citation is for Page A1; Page A8 appears in this clipping.</ref>
• 2011, UTC acquired a $18.4 billion deal (including $1.9 billion in net debt assumed) for aircraft components maker Goodrich Corporation.<ref>Template:Cite web</ref>
• 2012, United Technologies acquired Goodrich and merged it with Hamilton Sundstrand; the resulting organization is UTC Aerospace Systems
• 2015, UTC Building & Industrial Systems completed the acquisition of CIAT Group, a leading HVAC manufacturing company in France.<ref>Template:Cite web</ref> In November, Lockheed Martin completed its $9.0 billion acquisition of Sikorsky Aircraft.<ref>Template:Cite web</ref>
• 2017, UTC 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.<ref>Template:Cite press release</ref> In 2018, the company announced the Rockwell Collins deal had closed, and that it will split into three independent companies.<ref>Template:Cite news</ref> Pratt and Whitney and the newly formed Collins Aerospace will remain under United Technologies, while Otis Elevator and UTC Climate, Controls & Security (doing business as Carrier) will be spun off as two independent companies.<ref>Template:Cite news</ref>

Former businesses

• Clipper Windpower: A maker of wind turbines, acquired in 2010, sold in 2012 to Platinum Equity LLC.
• Hamilton Standard: became part of Hamilton Sundstrand, then UTC Aerospace Systems, now Collins Aerospace
• Hamilton Test Systems: developer of vehicle emission test equipment, sold to Georgetown Partners in 1990
• Inmont: paint and resins, sold to BASF
• Kidde: manufacturer of smoke alarms, carbon monoxide alarms and fire extinguishers. Now a subsidiary of UTC spin-off, Carrier
• Mostek semiconductor: from 1979 to 1985
• Norden Systems: manufacturer of electronics systems for military use, acquired in 1958, sold to Westinghouse in 1994<ref>Template:Cite web</ref>
• Pratt & Whitney Rocketdyne: sold in June 2013 and now part of GenCorp
• Sikorsky Aircraft: helicopters manufacturer;<ref name=":0" /> sold to Lockheed Martin<ref>Template:Cite web</ref>
  • PZL Mielec<ref>Template:Cite web</ref>
• 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,<ref>Template:Cite web</ref> sold to Mitsubishi Heavy Industry in May 2013<ref>Dowling, Brian (2013-05-17) "Tokyo Manufacturer Closes On Purchase Of Pratt Land-Turbine Business". The Hartford Courant. Retrieved 2013-08-20.</ref> and is now a MHI group company named PW Power Systems, Inc.
• UT Automotive: now a division of Lear Corporation
• UT Communications: manufacturer of telephone equipment, sold to Memorex in 1985
• UTC Power: a manufacturer of distributed power generation systems and fuel cells for commercial, transportation, and space and defense applications. Sold to ClearEdge Power in February 2013.

Political contributions

During the 2004 election cycle, UTC was the sixth largest defense industry donor to political campaigns, contributing a total of $789,561; 64% went to Republicans. In the 2006 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;<ref>Template:Cite web</ref>

In 2005, the firm was among 53 entities that contributed the maximum of $250,000 to the second inauguration of President George W. Bush.<ref>Template:Cite news</ref><ref>Template:Cite news</ref>

Philanthropy

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.<ref name="MFA">Template:Cite web</ref>

The firm and its subsidiaries are major contributors to museums such as the New England Air Museum.<ref>Template:Cite web</ref><ref name="New England Air Museum">Template:Cite web</ref>

In April 2015, UTC signed an education partnership agreement with the China Friendship Foundation for Peace and Development,<ref>Template:Cite web</ref> a united front organization under the control of the Chinese People's Association for Friendship with Foreign Countries.<ref>Template:Cite book</ref><ref name=":4">Template:Cite web</ref>

Environmental record

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 Template:Convert of toxic chemicals annually into the atmosphere<ref>Template:Cite web</ref> including manganese, nickel, chromium and related compounds.<ref>Template:Cite web</ref><ref>Template:Cite news</ref>

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 Template:Convert of toxins into the air.<ref>Template:Cite news</ref>

See also

• Top 100 US Federal Contractors
• Honor Award from the National Building Museum
• Yuzuru Ito
• Eva Collins, academic and lobbyist

Bibliography

• Template:Fernandez1983
• Template:Holland1989

External links

• UTC website