United Technologies (UTC) has the worldwide industrial expertise to lift you up and cool you down. Its Otis, UTC Climate Controls & Security, Pratt & Whitney, and Sikorsky segments develop technologies, systems, and services for the aerospace, construction, and security industries. Climate Controls & Security makes alarms, monitoring equipment, surveillance and access control systems, and fire and hazard detection products. Otis is the world's largest elevator and escalator manufacturing company. Pratt & Whitney makes commercial and military engines, while Sikorsky makes helicopters. UTC Aerospace Systems produces engine controls and flight systems for military and commercial clients.
UTC operates through 4,000 locations in more than 70 countries. The US generates around 60% of its total sales; Europe and the Asia/Pacific follow, contributing 20% and 15%, respectively.
After a wave of massive acquisitions and divestitures over the last few years, UTC has realigned under five well-diversified business segments. UTC's core Climate Controls & Security segment makes security products and firefighting equipment for commercial, governmental, and residential applications. This segment represented nearly 25% of UTC's total sales for 2014.
The other remaining segments include Pratt & Whitney (22% of sales), Otis (20%), UTC Aerospace Systems (22%), and Sikorsky (11%).
Sales and Marketing
The company serves customers residing in the commercial and industrial (contributing 45% revenue), commercial aerospace (35%), and military aerospace and space (20%) sectors. The US government contributed 15%.
UTC achieved historic growth in 2014, with revenues peaking at $65.1 billion, a company milestone. Profits also surged 9% from $5.7 billion in 2013 to a record-setting $6.2 billion in 2014 due to the higher revenue and lower selling, general, and administrative costs driven by lower pension expenses. Its cash flow from operations in 2014 decreased by 2% to $7.34 billion, due to reductions in accounts receivable in its aerospace businesses, fueled by accelerated customer collections.
The historic growth for 2014 was fueled by increases in UTC Aerospace Systems (7%) and Otis (4%), along with more significant growth from Sikorsky (19%). Sikorsky was helped by an uptick in international military and commercial craft sales. The growth for 2014 also reflected increased demand for residential heating, ventilation, and air conditioning (HVAC) equipment in the North American markets for UTC Climate Controls & Security, along with growth in commercial aftermarket volumes for Pratt & Whitney.
UTC strives to maintain a balance between its private and military sectors, its commercial and aerospace operations, and its original equipment (OE) and aftermarket products and services. It also juggles fluctuations in the market that may impact one or more of its businesses. These fluctuations include changing fuel costs and contracts from the US Department of Defense (DoD), which are subject to policies set by the White House and Congress.
This strategy of product balance is combined with geographic balance, which has the company investing in emerging markets that show great growth potential, such as Argentina, Brazil, China, Mexico, the Middle East, Russia, and South Africa. UTC is champing at the bit to acquire aerospace and commercial companies with operations in India, looking to achieve $2.5 billion in revenues from the country by 2015.
As it focuses on its core aerospace and building systems operations, UTC in early 2013 sold its UTC Power unit to Oregon-based ClearEdge Power. In late 2015, it also sold its former Sikorsky helicopter subsidiary to Lockheed Martin for $9 billion.