HARTFORD, Conn., July 22, 2014 /PRNewswire/ -- United Technologies
Corp. (NYSE: UTX) reported second quarter earnings per share of
$1.84 and net income attributable to
common shareowners of $1.7 billion,
both up 8 percent over the year ago quarter. Restructuring
costs were offset by other net favorable one-time items, which
include the Canadian Maritime Helicopter Program (CMHP) charge in
the current quarter. Earnings per share in the year ago
quarter included $0.05 of favorable
one-time items net of restructuring costs. Excluding these
items in both quarters, earnings per share increased 12 percent
year over year.
Sales of $17.2 billion increased 7
percent, reflecting the benefit of organic growth (3 points) and a
cumulative adjustment for the CMHP (5 points) partially offset by
net divestitures (1 point). Second quarter segment operating
profit decreased 15 percent over the prior year quarter, including
the CMHP adjustment. Excluding restructuring costs and net
one-time items, segment operating profit grew 8 percent with 90
basis points of operating margin expansion.
"Our focus on growth opportunities and execution in our core
markets resulted in another solid quarter," said Louis Chenevert, UTC Chairman & Chief
Executive Officer. "We saw a fourth consecutive quarter of
organic sales growth, along with strong margin expansion."
Otis new equipment orders increased 3 percent over the year ago
second quarter at constant currency, led by 44 percent growth in
North America. Equipment
orders at UTC Climate, Controls & Security increased 2 percent
organically. Large commercial engine spares orders were down
6 percent at Pratt & Whitney and commercial spares orders
increased 28 percent at UTC Aerospace Systems.
"With earnings up 11 percent, excluding the impact of
restructuring and one-time items, UTC delivered a strong first half
of the year," said Chenevert. "Our solid backlogs, organic growth
trends, and focus on execution give us confidence to increase the
lower end of our earnings per share range. We now expect
earnings per share of $6.75 to $6.85,
up from $6.65 to $6.85
previously."
Cash flow from operations was $1.7
billion and capital expenditures were $406 million in the quarter. Share
repurchase was $335 million. As
a result of increased working capital investment to support the
aerospace upcycle, the company now anticipates 2014 cash flow from
operations less capital expenditures to range from 90 to 100
percent of net income attributable to common shareowners. In
addition, UTC now expects share repurchase of $1.25 billion and acquisitions of less than
$1 billion for the year, from the
previous expectation of $1 billion
each.
United Technologies Corp., based in Hartford, Connecticut, provides high
technology products and services to the building and aerospace
industries. Additional information, including a webcast, is
available on the Internet at http://www.utc.com. To learn more
about UTC, visit the website or follow the company on Twitter:
@UTC
All financial results and projections reflect continuing
operations unless otherwise noted. The accompanying tables include
information integral to assessing the company's financial position,
operating performance, and cash flow, including a reconciliation of
differences between non-GAAP measures used in this release and the
comparable financial measures calculated in accordance with
generally accepted accounting principles in the United States.
This press release includes statements that constitute
"forward-looking statements" under the securities laws.
Forward-looking statements often contain words such as "believe,"
"expect," "plans," "project," "target," "anticipate," "will,"
"should," "see," "guidance," "confident" and similar terms.
Forward-looking statements may include, among other things,
statements relating to future and estimated sales, earnings, cash
flow, charges, expenditures, share repurchases and other measures
of financial performance. All forward-looking statements involve
risks, uncertainties and assumptions that may cause actual results
to differ materially from those expressed or implied in the
forward-looking statements. Risks and uncertainties include,
without limitation, the effect of economic conditions in the
markets in which we operate, including financial market conditions,
fluctuation in commodity prices, interest rates and foreign
currency exchange rates; future levels of research and development
spending; levels of end market demand in construction and in the
aerospace industry; levels of air travel; financial difficulties of
commercial airlines; the impact of government budget and funding
decisions on the economy; changes in government procurement
priorities and funding; weather conditions and natural disasters;
delays and disruption in delivery of materials and services from
suppliers; company and customer directed cost reduction efforts and
restructuring costs and consequences thereof; the impact of
acquisitions, dispositions, joint ventures and similar
transactions; the development and production of new products and
services; the impact of diversification across product lines,
regions and industries; the outcome of legal proceedings,
investigations and other contingencies; pension plan assumptions
and future contributions; the effect of changes in tax,
environmental and other laws and regulations and political
conditions; and other factors beyond our control. The level of
share repurchases depends upon market conditions and the level of
other investing activities and uses of cash. The forward-looking
statements speak only as of the date of this press release and we
undertake no obligation to update or revise any forward-looking
statements as of a later date. For additional information
identifying factors that may cause actual results to vary
materially from those stated in forward-looking statements, see our
reports on Forms 10-K, 10-Q and 8-K filed with the SEC from time to
time, including, but not limited to, the information included in
UTC's Forms 10-K and 10-Q under the headings "Business," "Risk
Factors," "Management's Discussion and Analysis of Financial
Condition and Results of Operations" and "Legal Proceedings" and in
the notes to the financial statements included in UTC's Forms 10-K
and 10-Q.
UTC-IR
United
Technologies Corporation
Condensed
Consolidated Statement of Operations
|
|
|
|
Quarter Ended June
30,
|
|
Six Months Ended
June 30,
|
|
|
(Unaudited)
|
|
(Unaudited)
|
(Millions, except per
share amounts)
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Net
Sales
|
$
|
17,191
|
|
|
$
|
16,006
|
|
|
$
|
31,936
|
|
|
$
|
30,405
|
|
Costs and
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of products and
services sold
|
12,931
|
|
|
11,552
|
|
|
23,621
|
|
|
22,017
|
|
|
Research and
development
|
666
|
|
|
631
|
|
|
1,290
|
|
|
1,241
|
|
|
Selling, general and
administrative
|
1,623
|
|
|
1,737
|
|
|
3,219
|
|
|
3,364
|
|
|
Total Costs and
Expenses
|
15,220
|
|
|
13,920
|
|
|
28,130
|
|
|
26,622
|
|
Other income,
net
|
384
|
|
|
421
|
|
|
647
|
|
|
730
|
|
Operating
profit
|
2,355
|
|
|
2,507
|
|
|
4,453
|
|
|
4,513
|
|
|
Interest expense,
net
|
206
|
|
|
217
|
|
|
431
|
|
|
453
|
|
Income from
continuing operations before income taxes
|
2,149
|
|
|
2,290
|
|
|
4,022
|
|
|
4,060
|
|
|
Income tax
expense
|
359
|
|
|
645
|
|
|
926
|
|
|
1,063
|
|
Income from
continuing operations
|
1,790
|
|
|
1,645
|
|
|
3,096
|
|
|
2,997
|
|
|
Less: Noncontrolling
interest in subsidiaries' earnings from continuing
operations
|
110
|
|
|
93
|
|
|
203
|
|
|
175
|
|
Income from
continuing operations attributable to common shareowners
|
1,680
|
|
|
1,552
|
|
|
2,893
|
|
|
2,822
|
|
Discontinued
Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
—
|
|
|
43
|
|
|
—
|
|
|
63
|
|
|
Loss on
disposal
|
—
|
|
|
(25)
|
|
|
—
|
|
|
(40)
|
|
|
Income tax
expense
|
—
|
|
|
(10)
|
|
|
—
|
|
|
(19)
|
|
Income from
discontinued operations attributable to common
shareowners
|
—
|
|
|
8
|
|
|
—
|
|
|
4
|
|
Net income
attributable to common shareowners
|
$
|
1,680
|
|
|
$
|
1,560
|
|
|
$
|
2,893
|
|
|
$
|
2,826
|
|
Earnings Per Share
of Common Stock - Basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
From continuing
operations attributable to common shareowners
|
$
|
1.87
|
|
|
$
|
1.72
|
|
|
$
|
3.21
|
|
|
$
|
3.13
|
|
|
From discontinued
operations attributable to common shareowners
|
—
|
|
|
0.01
|
|
|
—
|
|
|
0.01
|
|
Earnings Per Share
of Common Stock - Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
From continuing
operations attributable to common shareowners
|
$
|
1.84
|
|
|
$
|
1.70
|
|
|
$
|
3.16
|
|
|
$
|
3.09
|
|
|
From discontinued
operations attributable to common shareowners
|
—
|
|
|
0.01
|
|
|
—
|
|
|
0.01
|
|
Weighted Average
Number of Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
shares
|
900
|
|
|
901
|
|
|
900
|
|
|
901
|
|
|
Diluted
shares
|
915
|
|
|
914
|
|
|
915
|
|
|
914
|
|
|
As described on the
following pages, consolidated results for the quarters and six
months ended June 30, 2014 and 2013 include restructuring costs and
non-recurring items that management believes should be considered
when evaluating the underlying financial performance.
|
|
See accompanying
Notes to Condensed Consolidated Financial Statements.
|
United
Technologies Corporation
Segment Net Sales
and Operating Profit
|
|
|
Quarter Ended June
30,
|
|
Six Months Ended
June 30,
|
|
(Unaudited)
|
|
(Unaudited)
|
(Millions)
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Net
Sales
|
|
|
|
|
|
|
|
|
|
|
|
Otis
|
$
|
3,365
|
|
|
$
|
3,138
|
|
|
$
|
6,320
|
|
|
$
|
5,952
|
|
UTC Climate, Controls
& Security
|
4,429
|
|
|
4,543
|
|
|
8,280
|
|
|
8,380
|
|
Pratt &
Whitney
|
3,592
|
|
|
3,624
|
|
|
6,921
|
|
|
7,026
|
|
UTC Aerospace
Systems
|
3,636
|
|
|
3,321
|
|
|
7,086
|
|
|
6,584
|
|
Sikorsky
|
2,384
|
|
|
1,566
|
|
|
3,745
|
|
|
2,815
|
|
Segment
Sales
|
17,406
|
|
|
16,192
|
|
|
32,352
|
|
|
30,757
|
|
Eliminations and
other
|
(215)
|
|
|
(186)
|
|
|
(416)
|
|
|
(352)
|
|
Consolidated Net
Sales
|
$
|
17,191
|
|
|
$
|
16,006
|
|
|
$
|
31,936
|
|
|
$
|
30,405
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Profit
|
|
|
|
|
|
|
|
|
|
|
|
Otis
|
$
|
693
|
|
|
$
|
650
|
|
|
$
|
1,263
|
|
|
$
|
1,225
|
|
UTC Climate, Controls
& Security
|
815
|
|
|
752
|
|
|
1,352
|
|
|
1,272
|
|
Pratt &
Whitney
|
432
|
|
|
567
|
|
|
820
|
|
|
973
|
|
UTC Aerospace
Systems
|
602
|
|
|
499
|
|
|
1,192
|
|
|
1,000
|
|
Sikorsky
|
(317)
|
|
|
156
|
|
|
(231)
|
|
|
246
|
|
Segment Operating
Profit
|
2,225
|
|
|
2,624
|
|
|
4,396
|
|
|
4,716
|
|
Eliminations and
other
|
249
|
|
|
4
|
|
|
288
|
|
|
25
|
|
General corporate
expenses
|
(119)
|
|
|
(121)
|
|
|
(231)
|
|
|
(228)
|
|
Consolidated
Operating Profit
|
$
|
2,355
|
|
|
$
|
2,507
|
|
|
$
|
4,453
|
|
|
$
|
4,513
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Operating
Profit Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Otis
|
|
20.6
|
%
|
|
|
20.7
|
%
|
|
|
20.0
|
%
|
|
|
20.6
|
%
|
UTC Climate, Controls
& Security
|
|
18.4
|
%
|
|
|
16.6
|
%
|
|
|
16.3
|
%
|
|
|
15.2
|
%
|
Pratt &
Whitney
|
|
12.0
|
%
|
|
|
15.6
|
%
|
|
|
11.8
|
%
|
|
|
13.8
|
%
|
UTC Aerospace
Systems
|
|
16.6
|
%
|
|
|
15.0
|
%
|
|
|
16.8
|
%
|
|
|
15.2
|
%
|
Sikorsky
|
|
(13.3)
|
%
|
|
|
10.0
|
%
|
|
|
(6.2)
|
%
|
|
|
8.7
|
%
|
Segment Operating
Profit Margin
|
|
12.8
|
%
|
|
|
16.2
|
%
|
|
|
13.6
|
%
|
|
|
15.3
|
%
|
|
As described on the
following pages, consolidated results for the quarters and six
months ended June 30, 2014 and 2013 include restructuring costs and
non-recurring items that management believes should be considered
when evaluating the underlying financial performance.
|
United
Technologies Corporation
Restructuring
Costs and Non-Recurring Items Included in Consolidated
Results
|
|
|
Quarter Ended June
30,
|
|
Six Months Ended
June 30,
|
|
(Unaudited)
|
|
(Unaudited)
|
In Millions - Income
(Expense)
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Non-Recurring
items included in Net Sales:
|
|
|
|
|
|
|
|
|
|
|
|
Sikorsky
|
$
|
830
|
|
|
$
|
—
|
|
|
$
|
830
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
Costs included in Operating Profit:
|
|
|
|
|
|
|
|
|
|
|
|
Otis
|
$
|
(21)
|
|
|
$
|
(39)
|
|
|
$
|
(38)
|
|
|
$
|
(49)
|
|
UTC Climate, Controls
& Security
|
(25)
|
|
|
(16)
|
|
|
(68)
|
|
|
(38)
|
|
Pratt &
Whitney
|
(5)
|
|
|
(93)
|
|
|
(47)
|
|
|
(100)
|
|
UTC Aerospace
Systems
|
(4)
|
|
|
(33)
|
|
|
(10)
|
|
|
(41)
|
|
Sikorsky
|
—
|
|
|
(9)
|
|
|
(17)
|
|
|
(14)
|
|
Eliminations and
other
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(55)
|
|
|
(190)
|
|
|
(180)
|
|
|
(242)
|
|
Non-Recurring
items included in Operating Profit:
|
|
|
|
|
|
|
|
|
|
|
|
UTC Climate, Controls
& Security
|
—
|
|
|
—
|
|
|
—
|
|
|
38
|
|
Pratt &
Whitney
|
(82)
|
|
|
193
|
|
|
(82)
|
|
|
193
|
|
Sikorsky
|
(466)
|
|
|
—
|
|
|
(466)
|
|
|
—
|
|
Eliminations and
other
|
220
|
|
|
—
|
|
|
220
|
|
|
—
|
|
|
(328)
|
|
|
193
|
|
|
(328)
|
|
|
231
|
|
Total impact on
Consolidated Operating Profit
|
(383)
|
|
|
3
|
|
|
(508)
|
|
|
(11)
|
|
Non-Recurring
items included in Interest Expense, Net
|
21
|
|
|
36
|
|
|
21
|
|
|
36
|
|
Tax effect of
restructuring and non-recurring items above
|
108
|
|
|
(11)
|
|
|
150
|
|
|
5
|
|
Non-Recurring
items included in Income Tax Expense
|
253
|
|
|
22
|
|
|
253
|
|
|
117
|
|
Impact on Net Income
from Continuing Operations Attributable to Common
Shareowners
|
$
|
(1)
|
|
|
$
|
50
|
|
|
$
|
(84)
|
|
|
$
|
147
|
|
Impact on Diluted
Earnings Per Share from Continuing Operations
|
$
|
—
|
|
|
$
|
0.05
|
|
|
$
|
(0.09)
|
|
|
$
|
0.16
|
|
Details of the non-recurring items for the quarters and six
months ended June 30, 2014 and 2013
above are as follows:
Quarter Ended June 30,
2014
Pratt & Whitney:
- Approximately $60 million charge
to adjust the fair value of a Pratt & Whitney joint venture
investment.
- Approximately $22 million charge
for impairment of assets related to a joint venture.
Sikorsky:
- A cumulative adjustment to record $830
million in sales and $438
million in losses based upon the change in estimate required
for the contractual amendments signed with the Canadian Government
on the Maritime Helicopter program.
- Approximately $28 million charge
for the impairment of a Sikorsky joint venture investment.
Eliminations & Other: Approximately
$220 million gain on an agreement
with a state taxing authority for the monetization of tax
credits.
Interest Expense, Net: Approximately $21 million of favorable pre-tax interest
adjustments, primarily related to the conclusion of the IRS's
examination of the Company's 2009 and 2010 tax years.
Income Tax Expense: Approximately $253 million of favorable income tax adjustments
related to the conclusion of the IRS's examination of the Company's
2009 and 2010 tax years, as well as the settlement of state income
taxes related to the disposition of the Hamilton Sundstrand
Industrials businesses.
Quarter Ended June 30,
2013
Pratt & Whitney: Approximately $193 million gain from the sale of the Pratt
& Whitney Power Systems business. This gain was not
reclassified to "Discontinued Operations" due to our expected level
of continuing involvement in the business post disposition.
Interest Expense, Net: Approximately $36 million of favorable pre-tax interest
adjustments related to settlements for the Company's tax years
prior to 2006, as well as the conclusion of certain IRS
examinations of 2009 and 2010 tax years.
Income Tax Expense: Approximately $22 million of favorable income tax adjustments
related to the conclusion of certain IRS examinations of 2009 and
2010 tax years.
Quarter Ended March 31,
2013
UTC Climate, Controls & Security: Approximately
$38 million net gain from UTC
Climate, Controls & Security's ongoing portfolio
transformation, primarily due to a gain on the sale of a business
in Hong Kong.
Income Tax Expense: Approximately $95 million of favorable income tax adjustments
as a result of the enactment of the American Taxpayer Relief Act of
2012 in January 2013. The $95
million is primarily related to the retroactive extension of
the research and development credit to 2012.
United
Technologies Corporation
Segment Net Sales
and Operating Profit Adjusted for Restructuring Costs and
Non-Recurring Items (as reflected on the previous
pages)
|
|
|
Quarter Ended June
30,
|
|
Six Months Ended
June 30,
|
|
(Unaudited)
|
|
(Unaudited)
|
(Millions)
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Net
Sales
|
|
|
|
|
|
|
|
|
|
|
|
Otis
|
$
|
3,365
|
|
|
$
|
3,138
|
|
|
$
|
6,320
|
|
|
$
|
5,952
|
|
UTC Climate, Controls
& Security
|
4,429
|
|
|
4,543
|
|
|
8,280
|
|
|
8,380
|
|
Pratt &
Whitney
|
3,592
|
|
|
3,624
|
|
|
6,921
|
|
|
7,026
|
|
UTC Aerospace
Systems
|
3,636
|
|
|
3,321
|
|
|
7,086
|
|
|
6,584
|
|
Sikorsky
|
1,554
|
|
|
1,566
|
|
|
2,915
|
|
|
2,815
|
|
Segment
Sales
|
16,576
|
|
|
16,192
|
|
|
31,522
|
|
|
30,757
|
|
Eliminations and
other
|
(215)
|
|
|
(186)
|
|
|
(416)
|
|
|
(352)
|
|
Consolidated Net
Sales
|
$
|
16,361
|
|
|
$
|
16,006
|
|
|
$
|
31,106
|
|
|
$
|
30,405
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Profit
|
|
|
|
|
|
|
|
|
|
|
|
Otis
|
$
|
714
|
|
|
$
|
689
|
|
|
$
|
1,301
|
|
|
$
|
1,274
|
|
UTC Climate, Controls
& Security
|
840
|
|
|
768
|
|
|
1,420
|
|
|
1,272
|
|
Pratt &
Whitney
|
519
|
|
|
467
|
|
|
949
|
|
|
880
|
|
UTC Aerospace
Systems
|
606
|
|
|
532
|
|
|
1,202
|
|
|
1,041
|
|
Sikorsky
|
149
|
|
|
165
|
|
|
252
|
|
|
260
|
|
Segment Operating
Profit
|
2,828
|
|
|
2,621
|
|
|
5,124
|
|
|
4,727
|
|
Eliminations and
other
|
29
|
|
|
4
|
|
|
68
|
|
|
25
|
|
General corporate
expenses
|
(119)
|
|
|
(121)
|
|
|
(231)
|
|
|
(228)
|
|
Adjusted
Consolidated Operating Profit
|
$
|
2,738
|
|
|
$
|
2,504
|
|
|
$
|
4,961
|
|
|
$
|
4,524
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Segment
Operating Profit Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Otis
|
|
21.2
|
%
|
|
|
22.0
|
%
|
|
|
20.6
|
%
|
|
|
21.4
|
%
|
UTC Climate, Controls
& Security
|
|
19.0
|
%
|
|
|
16.9
|
%
|
|
|
17.1
|
%
|
|
|
15.2
|
%
|
Pratt &
Whitney
|
|
14.4
|
%
|
|
|
12.9
|
%
|
|
|
13.7
|
%
|
|
|
12.5
|
%
|
UTC Aerospace
Systems
|
|
16.7
|
%
|
|
|
16.0
|
%
|
|
|
17.0
|
%
|
|
|
15.8
|
%
|
Sikorsky
|
|
9.6
|
%
|
|
|
10.5
|
%
|
|
|
8.6
|
%
|
|
|
9.2
|
%
|
Adjusted Segment
Operating Profit Margin
|
|
17.1
|
%
|
|
|
16.2
|
%
|
|
|
16.3
|
%
|
|
|
15.4
|
%
|
United
Technologies Corporation
Condensed
Consolidated Balance Sheet
|
|
|
June
30,
|
|
December 31,
|
|
2014
|
|
|
2013
|
|
(Millions)
|
(Unaudited)
|
|
(Unaudited)
|
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
4,962
|
|
|
$
|
4,619
|
|
Accounts receivable,
net
|
11,795
|
|
|
11,458
|
|
Inventories and
contracts in progress, net
|
9,896
|
|
|
10,330
|
|
Other assets,
current
|
2,988
|
|
|
3,035
|
|
Total Current
Assets
|
29,641
|
|
|
29,442
|
|
Fixed assets,
net
|
9,026
|
|
|
8,866
|
|
Goodwill
|
28,378
|
|
|
28,168
|
|
Intangible assets,
net
|
15,715
|
|
|
15,521
|
|
Other
assets
|
9,382
|
|
|
8,597
|
|
Total
Assets
|
$
|
92,142
|
|
|
$
|
90,594
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
Short-term
debt
|
$
|
2,235
|
|
|
$
|
500
|
|
Accounts
payable
|
7,297
|
|
|
6,965
|
|
Accrued
liabilities
|
14,798
|
|
|
15,335
|
|
Total Current
Liabilities
|
24,330
|
|
|
22,800
|
|
Long-term
debt
|
17,837
|
|
|
19,741
|
|
Other long-term
liabilities
|
14,636
|
|
|
14,723
|
|
Total
Liabilities
|
56,803
|
|
|
57,264
|
|
Redeemable
noncontrolling interest
|
146
|
|
|
111
|
|
Shareowners'
Equity:
|
|
|
|
|
|
Common
Stock
|
14,939
|
|
|
14,638
|
|
Treasury
Stock
|
(21,094)
|
|
|
(20,431)
|
|
Retained
earnings
|
42,343
|
|
|
40,539
|
|
Accumulated other
comprehensive loss
|
(2,403)
|
|
|
(2,880)
|
|
Total Shareowners'
Equity
|
33,785
|
|
|
31,866
|
|
Noncontrolling
interest
|
1,408
|
|
|
1,353
|
|
Total
Equity
|
35,193
|
|
|
33,219
|
|
Total Liabilities
and Equity
|
$
|
92,142
|
|
|
$
|
90,594
|
|
Debt
Ratios:
|
|
|
|
|
|
|
|
Debt to total
capitalization
|
|
36
|
%
|
|
|
38
|
%
|
Net debt to net
capitalization
|
|
30
|
%
|
|
|
32
|
%
|
|
See accompanying
Notes to Condensed Consolidated Financial Statements.
|
United
Technologies Corporation
Condensed
Consolidated Statement of Cash Flows
|
|
|
Quarter Ended June
30,
|
|
Six Months Ended
June 30,
|
|
(Unaudited)
|
|
(Unaudited)
|
(Millions)
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Operating
Activities of Continuing Operations:
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
1,790
|
|
|
$
|
1,645
|
|
|
$
|
3,096
|
|
|
$
|
2,997
|
|
Adjustments to
reconcile net income from continuing operations to net cash flows
provided by operating activities of continuing
operations:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
468
|
|
|
439
|
|
|
935
|
|
|
883
|
|
Deferred income tax
(benefit) provision
|
(8)
|
|
|
50
|
|
|
36
|
|
|
10
|
|
Stock compensation
cost
|
58
|
|
|
63
|
|
|
118
|
|
|
133
|
|
Change in working
capital
|
(478)
|
|
|
(66)
|
|
|
(999)
|
|
|
(264)
|
|
Global pension
contributions
|
(60)
|
|
|
(22)
|
|
|
(144)
|
|
|
(51)
|
|
Other operating
activities, net
|
(28)
|
|
|
(170)
|
|
|
35
|
|
|
(360)
|
|
Net cash flows
provided by operating activities of continuing
operations
|
1,742
|
|
|
1,939
|
|
|
3,077
|
|
|
3,348
|
|
Investing
Activities of Continuing Operations:
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
(406)
|
|
|
(369)
|
|
|
(739)
|
|
|
(664)
|
|
Acquisitions and
dispositions of businesses, net
|
(34)
|
|
|
511
|
|
|
72
|
|
|
1,233
|
|
Increase in
collaboration intangible assets
|
(165)
|
|
|
(143)
|
|
|
(308)
|
|
|
(300)
|
|
Other investing
activities, net
|
176
|
|
|
(230)
|
|
|
102
|
|
|
(161)
|
|
Net cash flows (used
in) provided by investing activities of continuing
operations
|
(429)
|
|
|
(231)
|
|
|
(873)
|
|
|
108
|
|
Financing
Activities of Continuing Operations:
|
|
|
|
|
|
|
|
|
|
|
|
Repayment of
long-term debt, net
|
(179)
|
|
|
(1,178)
|
|
|
(173)
|
|
|
(1,224)
|
|
Increase (decrease)
in short-term borrowings, net
|
219
|
|
|
27
|
|
|
19
|
|
|
(302)
|
|
Dividends paid on
Common Stock
|
(513)
|
|
|
(465)
|
|
|
(1,026)
|
|
|
(930)
|
|
Repurchase of Common
Stock
|
(335)
|
|
|
(335)
|
|
|
(670)
|
|
|
(670)
|
|
Other financing
activities, net
|
(41)
|
|
|
(17)
|
|
|
7
|
|
|
139
|
|
Net cash flows used
in financing activities of continuing operations
|
(849)
|
|
|
(1,968)
|
|
|
(1,843)
|
|
|
(2,987)
|
|
Discontinued
Operations:
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities
|
—
|
|
|
21
|
|
|
—
|
|
|
(694)
|
|
Net cash provided by
investing activities
|
—
|
|
|
402
|
|
|
—
|
|
|
351
|
|
Net cash flows
provided by (used in) discontinued operations
|
—
|
|
|
423
|
|
|
—
|
|
|
(343)
|
|
Effect of foreign
exchange rate changes on cash and cash equivalents
|
21
|
|
|
(35)
|
|
|
(18)
|
|
|
(53)
|
|
Net increase in cash
and cash equivalents
|
485
|
|
|
128
|
|
|
343
|
|
|
73
|
|
Cash and cash
equivalents, beginning of period
|
4,477
|
|
|
4,781
|
|
|
4,619
|
|
|
4,836
|
|
Cash and cash
equivalents of continuing operations, end of period
|
$
|
4,962
|
|
|
$
|
4,909
|
|
|
$
|
4,962
|
|
|
$
|
4,909
|
|
|
See accompanying
Notes to Condensed Consolidated Financial Statements.
|
United
Technologies Corporation
Free Cash Flow
Reconciliation
|
|
|
Quarter Ended June
30,
|
|
(Unaudited)
|
(Millions)
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
Net income from
continuing operations attributable to common shareowners
|
$
|
1,680
|
|
|
|
|
$
|
1,552
|
|
|
|
Net cash flows
provided by operating activities of continuing
operations
|
$
|
1,742
|
|
|
|
|
$
|
1,939
|
|
|
|
Net cash flows
provided by operating activities of continuing operations as a
percentage of net income from continuing operations attributable to
common shareowners
|
|
|
104
|
%
|
|
|
|
125
|
%
|
Capital
expenditures
|
(406)
|
|
|
|
|
(369)
|
|
|
|
Capital expenditures
as a percentage of net income from continuing operations
attributable to common shareowners
|
|
|
(24)%
|
|
|
|
|
(24)%
|
|
Free cash flow from
continuing operations
|
$
|
1,336
|
|
|
|
|
$
|
1,570
|
|
|
|
Free cash flow from
continuing operations as a percentage of net income from continuing
operations attributable to common shareowners
|
|
|
80
|
%
|
|
|
|
101
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
(Unaudited)
|
(Millions)
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to common shareowners from continuing
operations
|
$
|
2,893
|
|
|
|
|
$
|
2,822
|
|
|
|
Net cash flows
provided by operating activities of continuing
operations
|
$
|
3,077
|
|
|
|
|
$
|
3,348
|
|
|
|
Net cash flows
provided by operating activities of continuing operations as a
percentage of net income attributable to common shareowners from
continuing operations
|
|
|
106
|
%
|
|
|
|
119
|
%
|
Capital
expenditures
|
(739)
|
|
|
|
|
(664)
|
|
|
|
Capital expenditures
as a percentage of net income attributable to common shareowners
from continuing operations
|
|
|
(26)%
|
|
|
|
|
(24)%
|
|
Free cash flow from
continuing operations
|
$
|
2,338
|
|
|
|
|
$
|
2,684
|
|
|
|
Free cash flow from
continuing operations as a percentage of net income attributable to
common shareowners from continuing operations
|
|
|
81
|
%
|
|
|
|
95
|
%
|
Notes to Condensed
Consolidated Financial Statements
|
(1)
|
Debt to total
capitalization equals total debt divided by total debt plus
equity. Net debt to net capitalization equals total debt less
cash and cash equivalents divided by total debt plus equity less
cash and cash equivalents.
|
(2)
|
Organic sales growth
represents the total reported increase within the Corporation's
ongoing businesses less the impact of foreign currency translation,
acquisitions and divestitures completed in the preceding twelve
months and significant non-recurring items.
|
(3)
|
Free cash flow, which
represents cash flow from operations less capital expenditures, is
the principal cash performance measure used by UTC. Management
believes free cash flow provides a relevant measure of liquidity
and a useful basis for assessing UTC's ability to fund its
activities, including the financing of acquisitions, debt service,
repurchases of UTC's common stock and distribution of earnings to
shareholders. Other companies that use the term free cash
flow may calculate it differently. The reconciliation of net
cash flow provided by operating activities, prepared in accordance
with generally accepted accounting principles, to free cash flow is
shown above.
|
Contact:
John Moran, UTC
(860) 728-7062
Investor Relations
(860) 728-7608
Logo- http://photos.prnewswire.com/prnh/20140122/NE50390LOGO
SOURCE United Technologies Corp.