HARTFORD, Conn., Jan. 26, 2015 /PRNewswire/ -- United
Technologies Corp. (NYSE: UTX) reported full year 2014 earnings per
share of $6.82 and net income
attributable to common shareowners of $6.2
billion, up 10 percent and 9 percent, respectively
over the prior year. Sales of $65.1
billion were 4 percent above prior year including 4 points
of organic growth. Segment operating margin was 15.2 percent,
10 basis points lower than prior year. Adjusted for
restructuring and one-time items, segment operating margin was 16.6
percent. Cash flow from operations of $7.3 billion, less capital expenditures of
$1.7 billion, was 90 percent of net
income attributable to common shareowners.
"UTC delivered double digit earnings growth in 2014 despite a
slower than expected global economy," said Gregory Hayes, UTC President & Chief
Executive Officer. "Strong conversion on solid topline
growth, continued cost reductions and benefits from lower pension
expense drove the double digit earnings increase for the
year. We delivered 90 basis points of margin expansion even
as we continued to invest for the future."
Earnings per share for the fourth quarter of $1.62 included $0.09 of restructuring costs and $0.17 of net unfavorable one-time items.
The prior year quarter included $0.11 of restructuring costs and $0.02 of favorable one-time items. Adjusted
for restructuring and net one-time items in both years, earnings
per share grew 13 percent, with segment operating margins of 16.5
percent. Sales of $17.0 billion
increased 1 percent, reflecting the benefit of organic growth (4
points) partially offset by unfavorable foreign exchange (3
points).
Otis new equipment orders in the quarter increased 12 percent
over the prior year at constant currency. Equipment orders at
UTC Climate, Controls & Security increased 11 percent.
Commercial aftermarket sales were down 6 percent at Pratt &
Whitney on a tough compare, and up 5 percent at UTC Aerospace
Systems.
"We saw good organic growth throughout the year," added
Hayes. "Based on solid backlog and continued orders strength,
we see topline momentum as we enter 2015; our business fundamentals
and operational expectations have not changed. However, with
the continuing strengthening of the US dollar, as well as
additional pension discount rate headwind, we now expect 2015 EPS
of $6.85 to $7.05, on sales of
$65 to $66 billion."
UTC expects to invest $1.7 billion
in capital expenditures in 2015, and continues to estimate cash
flow from operations less capital expenditures in the range of 90
to 100 percent of net income attributable to common
shareowners. The company now expects share repurchase of
$3 billion and acquisitions of
approximately $1 billion in 2015,
following $1.5 billion and
$530 million, respectively, in
2014.
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 condition 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 impact 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
Contact:
|
Danielle Canzanella,
UTC
|
|
(860)
728-6238
|
|
|
|
Investor
Relations
|
|
(860) 728-7608
|
United
Technologies Corporation Condensed Consolidated Statement
of Operations
|
|
|
|
|
|
|
|
Quarter Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
(Unaudited)
|
|
(Unaudited)
|
(Millions, except per
share amounts)
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Net
Sales
|
$
|
16,996
|
|
|
$
|
16,759
|
|
|
$
|
65,100
|
|
|
$
|
62,626
|
|
Costs and
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of products and
services sold
|
12,360
|
|
|
12,284
|
|
|
47,447
|
|
|
45,321
|
|
|
Research and
development
|
668
|
|
|
658
|
|
|
2,635
|
|
|
2,529
|
|
|
Selling, general and
administrative
|
1,701
|
|
|
1,721
|
|
|
6,500
|
|
|
6,718
|
|
|
Total Costs and
Expenses
|
14,729
|
|
|
14,663
|
|
|
56,582
|
|
|
54,568
|
|
Other income,
net
|
303
|
|
|
234
|
|
|
1,251
|
|
|
1,151
|
|
Operating
profit
|
2,570
|
|
|
2,330
|
|
|
9,769
|
|
|
9,209
|
|
|
Interest expense,
net
|
265
|
|
|
218
|
|
|
882
|
|
|
897
|
|
Income from
continuing operations before income taxes
|
2,305
|
|
|
2,112
|
|
|
8,887
|
|
|
8,312
|
|
|
Income tax
expense
|
730
|
|
|
561
|
|
|
2,264
|
|
|
2,238
|
|
Income from
continuing operations
|
1,575
|
|
|
1,551
|
|
|
6,623
|
|
|
6,074
|
|
|
Less: Noncontrolling
interest in subsidiaries' earnings from
continuing operations
|
102
|
|
|
102
|
|
|
403
|
|
|
388
|
|
Income from
continuing operations attributable to common
shareowners
|
1,473
|
|
|
1,449
|
|
|
6,220
|
|
|
5,686
|
|
Discontinued
Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
—
|
|
|
—
|
|
|
—
|
|
|
63
|
|
|
Loss on
disposal
|
—
|
|
|
(3)
|
|
|
—
|
|
|
(33)
|
|
|
Income tax
benefit
|
—
|
|
|
17
|
|
|
—
|
|
|
5
|
|
Income from
discontinued operations attributable to common
shareowners
|
—
|
|
|
14
|
|
|
—
|
|
|
35
|
|
Net income
attributable to common shareowners
|
$
|
1,473
|
|
|
$
|
1,463
|
|
|
$
|
6,220
|
|
|
$
|
5,721
|
|
Earnings Per Share
of Common Stock - Basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
From continuing
operations attributable to common
shareowners
|
$
|
1.64
|
|
|
$
|
1.61
|
|
|
$
|
6.92
|
|
|
$
|
6.31
|
|
|
From discontinued
operations attributable to common
shareowners
|
—
|
|
|
0.02
|
|
|
—
|
|
|
0.04
|
|
Earnings Per Share
of Common Stock - Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
From continuing
operations attributable to common
shareowners
|
$
|
1.62
|
|
|
$
|
1.58
|
|
|
$
|
6.82
|
|
|
$
|
6.21
|
|
|
From discontinued
operations attributable to common
shareowners
|
—
|
|
|
0.02
|
|
|
—
|
|
|
0.04
|
|
Weighted Average
Number of Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
shares
|
895
|
|
|
901
|
|
|
898
|
|
|
901
|
|
|
Diluted
shares
|
907
|
|
|
917
|
|
|
912
|
|
|
915
|
|
As described on the following pages, consolidated results for
the quarters and years ended December 31,
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
December 31,
|
|
Year Ended
December 31,
|
|
(Unaudited)
|
|
(Unaudited)
|
(Millions)
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Net
Sales
|
|
|
|
|
|
|
|
|
|
|
|
Otis
|
$
|
3,336
|
|
|
$
|
3,344
|
|
|
$
|
12,982
|
|
|
$
|
12,484
|
|
UTC Climate, Controls
& Security
|
4,192
|
|
|
4,192
|
|
|
16,823
|
|
|
16,809
|
|
Pratt &
Whitney
|
4,023
|
|
|
4,089
|
|
|
14,508
|
|
|
14,501
|
|
UTC Aerospace
Systems
|
3,594
|
|
|
3,451
|
|
|
14,215
|
|
|
13,347
|
|
Sikorsky
|
2,086
|
|
|
1,897
|
|
|
7,451
|
|
|
6,253
|
|
Segment
Sales
|
17,231
|
|
|
16,973
|
|
|
65,979
|
|
|
63,394
|
|
Eliminations and
other
|
(235)
|
|
|
(214)
|
|
|
(879)
|
|
|
(768)
|
|
Consolidated Net
Sales
|
$
|
16,996
|
|
|
$
|
16,759
|
|
|
$
|
65,100
|
|
|
$
|
62,626
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Profit
|
|
|
|
|
|
|
|
|
|
|
|
Otis
|
$
|
674
|
|
|
$
|
684
|
|
|
$
|
2,640
|
|
|
$
|
2,590
|
|
UTC Climate, Controls
& Security
|
623
|
|
|
622
|
|
|
2,782
|
|
|
2,590
|
|
Pratt &
Whitney
|
547
|
|
|
464
|
|
|
2,000
|
|
|
1,876
|
|
UTC Aerospace
Systems
|
588
|
|
|
517
|
|
|
2,355
|
|
|
2,018
|
|
Sikorsky
|
298
|
|
|
189
|
|
|
219
|
|
|
594
|
|
Segment Operating
Profit
|
2,730
|
|
|
2,476
|
|
|
9,996
|
|
|
9,668
|
|
Eliminations and
other
|
(27)
|
|
|
(10)
|
|
|
261
|
|
|
22
|
|
General corporate
expenses
|
(133)
|
|
|
(136)
|
|
|
(488)
|
|
|
(481)
|
|
Consolidated
Operating Profit
|
$
|
2,570
|
|
|
$
|
2,330
|
|
|
$
|
9,769
|
|
|
$
|
9,209
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Operating
Profit Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Otis
|
|
20.2
|
%
|
|
|
20.5
|
%
|
|
|
20.3
|
%
|
|
|
20.7
|
%
|
UTC Climate, Controls
& Security
|
|
14.9
|
%
|
|
|
14.8
|
%
|
|
|
16.5
|
%
|
|
|
15.4
|
%
|
Pratt &
Whitney
|
|
13.6
|
%
|
|
|
11.3
|
%
|
|
|
13.8
|
%
|
|
|
12.9
|
%
|
UTC Aerospace
Systems
|
|
16.4
|
%
|
|
|
15.0
|
%
|
|
|
16.6
|
%
|
|
|
15.1
|
%
|
Sikorsky
|
|
14.3
|
%
|
|
|
10.0
|
%
|
|
|
2.9
|
%
|
|
|
9.5
|
%
|
Segment Operating Profit
Margin
|
|
15.8
|
%
|
|
|
14.6
|
%
|
|
|
15.2
|
%
|
|
|
15.3
|
%
|
As described on the following pages, consolidated results for
the quarters and years ended December 31,
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
December 31,
|
|
Year Ended
December 31,
|
|
(Unaudited)
|
|
(Unaudited)
|
In Millions - Income
(Expense)
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Non-Recurring
items included in Net Sales:
|
|
|
|
|
|
|
|
|
|
|
|
Sikorsky
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
830
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
Costs included in Operating Profit:
|
|
|
|
|
|
|
|
|
|
|
|
Otis
|
$
|
(34)
|
|
|
$
|
(20)
|
|
|
$
|
(87)
|
|
|
$
|
(88)
|
|
UTC Climate, Controls
& Security
|
(34)
|
|
|
(31)
|
|
|
(116)
|
|
|
(97)
|
|
Pratt &
Whitney
|
(9)
|
|
|
(32)
|
|
|
(64)
|
|
|
(154)
|
|
UTC Aerospace
Systems
|
(46)
|
|
|
(27)
|
|
|
(82)
|
|
|
(92)
|
|
Sikorsky
|
3
|
|
|
(25)
|
|
|
(14)
|
|
|
(50)
|
|
Eliminations and
other
|
(5)
|
|
|
(1)
|
|
|
(5)
|
|
|
—
|
|
|
(125)
|
|
|
(136)
|
|
|
(368)
|
|
|
(481)
|
|
Non-Recurring
items included in Operating Profit:
|
|
|
|
|
|
|
|
|
|
|
|
UTC Climate, Controls
& Security
|
—
|
|
|
17
|
|
|
30
|
|
|
55
|
|
Pratt &
Whitney
|
—
|
|
|
—
|
|
|
1
|
|
|
168
|
|
Sikorsky
|
—
|
|
|
—
|
|
|
(466)
|
|
|
—
|
|
Eliminations and
other
|
—
|
|
|
—
|
|
|
220
|
|
|
—
|
|
|
—
|
|
|
17
|
|
|
(215)
|
|
|
223
|
|
Total impact on
Consolidated Operating Profit
|
(125)
|
|
|
(119)
|
|
|
(583)
|
|
|
(258)
|
|
Non-Recurring
items included in Interest Expense, Net
|
(55)
|
|
|
12
|
|
|
(11)
|
|
|
48
|
|
Tax effect of
restructuring and non-recurring items above
|
30
|
|
|
15
|
|
|
185
|
|
|
54
|
|
Non-Recurring
items included in Income Tax Expense
|
(87)
|
|
|
13
|
|
|
284
|
|
|
154
|
|
Impact on Net Income
from Continuing Operations Attributable
to Common Shareowners
|
$
|
(237)
|
|
|
$
|
(79)
|
|
|
$
|
(125)
|
|
|
$
|
(2)
|
|
Impact on Diluted
Earnings Per Share from Continuing Operations
|
$
|
(0.26)
|
|
|
$
|
(0.09)
|
|
|
$
|
(0.14)
|
|
|
$
|
—
|
|
Details of the non-recurring items for the quarters and years
ended December 31, 2014 and 2013
above are as follows:
Quarter Ended December
31, 2014
Interest Expense, Net:
- Approximately $143 million of
unfavorable pre-tax interest accruals related to the ongoing
dispute with German tax authorities concerning a 1998
reorganization of the corporate structure of Otis operations in
Germany.
- Approximately $88 million of
favorable pre-tax interest adjustments, primarily related to
conclusion of litigation and the resolution of disputes with the
Appeals Division of the IRS regarding Goodrich Corporation's 2000
to 2010 tax years.
Income Tax Expense:
- Approximately $267 million of
unfavorable income tax accruals related to the ongoing dispute with
German tax authorities concerning a 1998 reorganization of the
corporate structure of Otis operations in Germany.
- Approximately $180 million
favorable tax adjustment primarily associated with management's
decision to repatriate additional high taxed dividends in
2014.
Quarter Ended September
30, 2014
UTC Climate, Controls & Security: Approximately
$30 million net gain from UTC
Climate, Controls & Security's ongoing portfolio
transformation, primarily due to a gain on the sale of an interest
in a joint venture in North
America.
Pratt & Whitney: Approximately $83 million net gain, primarily as a result of
fair value adjustments related to a business acquisition.
Interest Expense, Net: Approximately $23 million of favorable pre-tax interest
adjustments, primarily related to the resolution of disputes with
the Appeals Division of the IRS for the Company's 2006 - 2008 tax
years.
Income Tax Expense: Approximately $118 million of favorable income tax adjustments,
primarily related to the resolution of disputes with the Appeals
Division of the IRS for the Company's 2006 - 2008 tax years.
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 December
31, 2013
UTC Climate, Controls & Security: Approximately
$17 million net gain from UTC
Climate, Controls & Security's ongoing portfolio
transformation, primarily due to a gain on the sale of a business
in Australia.
Interest Expense, Net: Approximately $12 million of favorable pre-tax interest
adjustments related to the resolution of a dispute with the IRS for
the legacy Goodrich 2001 - 2006 tax years.
Income Tax Expense: Approximately $13 million of favorable income tax adjustments
related to the resolution of a dispute with the IRS for the legacy
Goodrich 2001 - 2006 tax years.
Quarter Ended September
30, 2013
Pratt & Whitney: Approximately $25 million charge to adjust the fair value of a
Pratt & Whitney joint venture investment.
Income Tax Expense: Favorable tax benefit of
approximately $24 million as a result
of a U.K. tax rate reduction enacted in July
2013.
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
December 31,
|
|
Year Ended
December 31,
|
|
(Unaudited)
|
|
(Unaudited)
|
(Millions)
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Net
Sales
|
|
|
|
|
|
|
|
|
|
|
|
Otis
|
$
|
3,336
|
|
|
$
|
3,344
|
|
|
$
|
12,982
|
|
|
$
|
12,484
|
|
UTC Climate, Controls
& Security
|
4,192
|
|
|
4,192
|
|
|
16,823
|
|
|
16,809
|
|
Pratt &
Whitney
|
4,023
|
|
|
4,089
|
|
|
14,508
|
|
|
14,501
|
|
UTC Aerospace
Systems
|
3,594
|
|
|
3,451
|
|
|
14,215
|
|
|
13,347
|
|
Sikorsky
|
2,086
|
|
|
1,897
|
|
|
6,621
|
|
|
6,253
|
|
Segment
Sales
|
17,231
|
|
|
16,973
|
|
|
65,149
|
|
|
63,394
|
|
Eliminations and
other
|
(235)
|
|
|
(214)
|
|
|
(879)
|
|
|
(768)
|
|
Consolidated Net
Sales
|
$
|
16,996
|
|
|
$
|
16,759
|
|
|
$
|
64,270
|
|
|
$
|
62,626
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Profit
|
|
|
|
|
|
|
|
|
|
|
|
Otis
|
$
|
708
|
|
|
$
|
704
|
|
|
$
|
2,727
|
|
|
$
|
2,678
|
|
UTC Climate, Controls
& Security
|
657
|
|
|
636
|
|
|
2,868
|
|
|
2,632
|
|
Pratt &
Whitney
|
556
|
|
|
496
|
|
|
2,063
|
|
|
1,862
|
|
UTC Aerospace
Systems
|
634
|
|
|
544
|
|
|
2,437
|
|
|
2,110
|
|
Sikorsky
|
295
|
|
|
214
|
|
|
699
|
|
|
644
|
|
Segment Operating
Profit
|
2,850
|
|
|
2,594
|
|
|
10,794
|
|
|
9,926
|
|
Eliminations and
other
|
(26)
|
|
|
(9)
|
|
|
42
|
|
|
22
|
|
General corporate
expenses
|
(129)
|
|
|
(136)
|
|
|
(484)
|
|
|
(481)
|
|
Adjusted
Consolidated Operating Profit
|
$
|
2,695
|
|
|
$
|
2,449
|
|
|
$
|
10,352
|
|
|
$
|
9,467
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Segment
Operating Profit Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Otis
|
21.2
|
%
|
|
21.1
|
%
|
|
21.0
|
%
|
|
21.5
|
%
|
UTC Climate, Controls
& Security
|
15.7
|
%
|
|
15.2
|
%
|
|
17.0
|
%
|
|
15.7
|
%
|
Pratt &
Whitney
|
13.8
|
%
|
|
12.1
|
%
|
|
14.2
|
%
|
|
12.8
|
%
|
UTC Aerospace
Systems
|
17.6
|
%
|
|
15.8
|
%
|
|
17.1
|
%
|
|
15.8
|
%
|
Sikorsky
|
14.1
|
%
|
|
11.3
|
%
|
|
10.6
|
%
|
|
10.3
|
%
|
Adjusted Segment
Operating Profit Margin
|
16.5
|
%
|
|
15.3
|
%
|
|
16.6
|
%
|
|
15.7
|
%
|
United
Technologies Corporation Condensed Consolidated Balance
Sheet
|
|
|
|
|
|
December
31,
|
|
December 31,
|
|
2014
|
|
|
2013
|
|
(Millions)
|
(Unaudited)
|
|
(Unaudited)
|
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
5,235
|
|
|
$
|
4,619
|
|
Accounts receivable,
net
|
11,317
|
|
|
11,458
|
|
Inventories and
contracts in progress, net
|
9,865
|
|
|
10,330
|
|
Other assets,
current
|
3,341
|
|
|
3,035
|
|
Total Current
Assets
|
29,758
|
|
|
29,442
|
|
Fixed assets,
net
|
9,276
|
|
|
8,866
|
|
Goodwill
|
27,796
|
|
|
28,168
|
|
Intangible assets,
net
|
15,560
|
|
|
15,521
|
|
Other
assets
|
8,899
|
|
|
8,597
|
|
Total
Assets
|
$
|
91,289
|
|
|
$
|
90,594
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
Short-term
debt
|
$
|
1,922
|
|
|
$
|
500
|
|
Accounts
payable
|
6,967
|
|
|
6,965
|
|
Accrued
liabilities
|
14,006
|
|
|
15,335
|
|
Total Current
Liabilities
|
22,895
|
|
|
22,800
|
|
Long-term
debt
|
17,872
|
|
|
19,741
|
|
Other long-term
liabilities
|
17,818
|
|
|
14,723
|
|
Total
Liabilities
|
58,585
|
|
|
57,264
|
|
Redeemable
noncontrolling interest
|
140
|
|
|
111
|
|
Shareowners'
Equity:
|
|
|
|
|
|
Common
Stock
|
15,185
|
|
|
14,638
|
|
Treasury
Stock
|
(21,922)
|
|
|
(20,431)
|
|
Retained
earnings
|
44,611
|
|
|
40,539
|
|
Accumulated other
comprehensive loss
|
(6,661)
|
|
|
(2,880)
|
|
Total Shareowners'
Equity
|
31,213
|
|
|
31,866
|
|
Noncontrolling
interest
|
1,351
|
|
|
1,353
|
|
Total
Equity
|
32,564
|
|
|
33,219
|
|
Total Liabilities
and Equity
|
$
|
91,289
|
|
|
$
|
90,594
|
|
|
|
|
|
|
|
|
|
Debt
Ratios:
|
|
|
|
|
|
|
|
Debt to total
capitalization
|
38
|
%
|
|
38
|
%
|
Net debt to net
capitalization
|
31
|
%
|
|
32
|
%
|
See accompanying Notes to Condensed Consolidated Financial
Statements.
United
Technologies Corporation Condensed Consolidated Statement
of Cash Flows
|
|
|
Quarter Ended
December 31,
|
|
Year Ended
December 31,
|
|
(Unaudited)
|
|
(Unaudited)
|
(Millions)
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
Operating
Activities of Continuing Operations:
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
1,575
|
|
|
$
|
1,551
|
|
|
$
|
6,623
|
|
|
$
|
6,074
|
|
Adjustments to
reconcile net income from continuing
operations to net cash flows provided by operating activities
of
continuing operations:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
489
|
|
|
486
|
|
|
1,907
|
|
|
1,821
|
|
Deferred income tax
provision
|
258
|
|
|
228
|
|
|
376
|
|
|
242
|
|
Stock compensation
cost
|
37
|
|
|
59
|
|
|
240
|
|
|
275
|
|
Change in working
capital
|
149
|
|
|
264
|
|
|
(1,247)
|
|
|
(199)
|
|
Global pension
contributions
|
(314)
|
|
|
(37)
|
|
|
(517)
|
|
|
(108)
|
|
Other operating
activities, net
|
116
|
|
|
62
|
|
|
(46)
|
|
|
(600)
|
|
Net cash flows
provided by operating activities of continuing
operations
|
2,310
|
|
|
2,613
|
|
|
7,336
|
|
|
7,505
|
|
Investing
Activities of Continuing Operations:
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
(557)
|
|
|
(641)
|
|
|
(1,711)
|
|
|
(1,688)
|
|
Acquisitions and
dispositions of businesses, net
|
76
|
|
|
65
|
|
|
(58)
|
|
|
1,409
|
|
Increase in
collaboration intangible assets
|
(134)
|
|
|
(175)
|
|
|
(593)
|
|
|
(722)
|
|
Other investing
activities, net
|
(212)
|
|
|
(113)
|
|
|
57
|
|
|
(463)
|
|
Net cash flows used
in investing activities of continuing
operations
|
(827)
|
|
|
(864)
|
|
|
(2,305)
|
|
|
(1,464)
|
|
Financing
Activities of Continuing Operations:
|
|
|
|
|
|
|
|
|
|
|
|
Issuance (repayment)
of long-term debt, net
|
17
|
|
|
(976)
|
|
|
(206)
|
|
|
(2,770)
|
|
(Decrease) increase
in short-term borrowings, net
|
(218)
|
|
|
91
|
|
|
(346)
|
|
|
(113)
|
|
Dividends paid on
Common Stock
|
(510)
|
|
|
(512)
|
|
|
(2,048)
|
|
|
(1,908)
|
|
Repurchase of Common
Stock
|
(405)
|
|
|
(200)
|
|
|
(1,500)
|
|
|
(1,200)
|
|
Other financing
activities, net
|
(69)
|
|
|
(116)
|
|
|
(159)
|
|
|
51
|
|
Net cash flows used
in financing activities of continuing
operations
|
(1,185)
|
|
|
(1,713)
|
|
|
(4,259)
|
|
|
(5,940)
|
|
Discontinued
Operations:
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in
operating activities
|
—
|
|
|
(25)
|
|
|
—
|
|
|
(628)
|
|
Net cash provided by
investing activities
|
—
|
|
|
—
|
|
|
—
|
|
|
351
|
|
Net cash flows used
in discontinued operations
|
—
|
|
|
(25)
|
|
|
—
|
|
|
(277)
|
|
Effect of foreign
exchange rate changes on cash and cash
equivalents
|
(98)
|
|
|
(13)
|
|
|
(156)
|
|
|
(41)
|
|
Net increase
(decrease) in cash and cash equivalents
|
200
|
|
|
(2)
|
|
|
616
|
|
|
(217)
|
|
Cash and cash
equivalents, beginning of period
|
5,035
|
|
|
4,621
|
|
|
4,619
|
|
|
4,836
|
|
Cash and cash
equivalents of continuing operations, end of
period
|
$
|
5,235
|
|
|
$
|
4,619
|
|
|
$
|
5,235
|
|
|
$
|
4,619
|
|
See accompanying Notes to Condensed Consolidated Financial
Statements.
United
Technologies Corporation Free Cash Flow
Reconciliation
|
|
|
Quarter Ended
December 31,
|
|
(Unaudited)
|
(Millions)
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
Net income from
continuing operations attributable to common shareowners
|
$
|
1,473
|
|
|
|
|
$
|
1,449
|
|
|
|
Net cash flows
provided by operating activities of continuing
operations
|
$
|
2,310
|
|
|
|
|
$
|
2,613
|
|
|
|
Net cash flows
provided by operating activities of continuing operations as a
percentage of net income from continuing operations attributable to
common
shareowners
|
|
|
157
|
%
|
|
|
|
180
|
%
|
Capital
expenditures
|
(557)
|
|
|
|
|
(641)
|
|
|
|
Capital expenditures
as a percentage of net income from continuing operations
attributable to common shareowners
|
|
|
(38)
|
%
|
|
|
|
(44)
|
%
|
Free cash flow from
continuing operations
|
$
|
1,753
|
|
|
|
|
$
|
1,972
|
|
|
|
Free cash flow from
continuing operations as a percentage of net income from
continuing operations attributable to common shareowners
|
|
|
119
|
%
|
|
|
|
136
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended
December 31,
|
|
(Unaudited)
|
(Millions)
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to common shareowners from continuing
operations
|
$
|
6,220
|
|
|
|
|
$
|
5,686
|
|
|
|
Net cash flows
provided by operating activities of continuing
operations
|
$
|
7,336
|
|
|
|
|
$
|
7,505
|
|
|
|
Net cash flows
provided by operating activities of continuing operations as a
percentage of net income attributable to common shareowners from
continuing
operations
|
|
|
118
|
%
|
|
|
|
132
|
%
|
Capital
expenditures
|
(1,711)
|
|
|
|
|
(1,688)
|
|
|
|
Capital expenditures
as a percentage of net income attributable to common
shareowners from continuing operations
|
|
|
(28)
|
%
|
|
|
|
(30)
|
%
|
Free cash flow from
continuing operations
|
$
|
5,625
|
|
|
|
|
$
|
5,817
|
|
|
|
Free cash flow from
continuing operations as a percentage of net income
attributable to common shareowners from continuing
operations
|
|
|
90
|
%
|
|
|
|
102
|
%
|
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.
Logo -
http://photos.prnewswire.com/prnh/20140122/NE50390LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/utc-reports-full-year-2014-results-updates-2015-outlook-300025767.html
SOURCE United Technologies Corp.