UTX United Technologies Corporation

   (FROM THE WALL STREET JOURNAL 3/11/16) 
   By Ted Mann and Austen Hufford 

United Technologies Corp. reaffirmed its rationale for opposing a $90 billion merger bid from Honeywell International Inc., saying the deal would have been impossible to pull off due to concerns from regulators and customers.

"The regulatory and the customer obstacles were very real," Chief Executive Gregory Hayes said on Thursday at United Technologies' annual investor conference. "We felt it was irresponsible to move forward with a combination because of those risks."

Mr. Hayes' comments came as United Technologies restated its profit guidance, and with reassurance that the company sees strong growth ahead in several of its industrial businesses that have been coping with short-term headwinds, including its Pratt & Whitney jet engine and Otis elevator businesses.

"We don't need to do M&A for growth," Mr. Hayes said, adding that the company will continue to "aggressively" buy back its own shares.

United Technologies plans to return a total of $22 billion to shareholders from 2015 through 2017 through buybacks and dividends.

And the company forecasts that its research and development spending will fall as products like its newest Pratt jet engine start to come into service. But at the same time it will also boost investment in other areas, especially at Otis, where United Technologies is trying to stem the loss of market share for elevators in China and boost its service profits in key markets such as Europe.

Honeywell sought to merge with United Technologies to form a company that makes everything from elevators and thermostats to jet engines and landing gear. But United Technologies rebuffed the deal, citing the overlap between their business units -- especially in aerospace -- and saying such a transaction would face steep regulatory hurdles.

Farmington, Conn.-based United Technologies on Thursday backed its profit guidance for the year and its annual revenue forecast of between $56 billion to $58 billion. Last week, Honeywell similarly reaffirmed its guidance.

(END) Dow Jones Newswires

March 11, 2016 02:47 ET (07:47 GMT)

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