Diversified business conglomerate
United Technologies Corp.
) recently announced its plans to redeem all of its outstanding
3.6% notes due 2021 related to the erstwhile Goodrich
Corporation. The principal amount of the notes aggregate $294.2
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On Jul 26, 2012, United Technologies acquired Goodrich for $16.5
billion and merged it with the legacy Hamilton Sundstrand
division to form a new operating segment named UTC Aerospace
Systems. Hamilton Sundstrand is among the world's leading
suppliers of technologically advanced aerospace and industrial
products and aftermarket services for diversified industries
worldwide. Its product portfolio includes power generation,
management and distribution systems, flight systems, engine
control systems, environmental control systems, fire protection
and detection systems, auxiliary power units and propeller
systems. Aftermarket services include spare parts, overhaul and
repair, engineering and technical support and fleet maintenance
The acquisition resulted in the merger of the two leading
aircraft manufacturers in the industry to create a behemoth that
produce aviation equipments for premier companies such as
The Boeing Company
Lockheed Martin Corporation
), and Airbus. The merger also led to economies of scale,
increased financial flexibility, and complementary products at an
opportune time when the commercial aerospace industry is poised
Based in Hartford, Conn., United Technologies provides high-end
technology products and services to the building systems and
aerospace industries worldwide. The company serves various end
markets such as aerospace, defense and commercial construction.
The business diversification allows the company to remain
profitable amid tough economic times.
United Technologies' operations are primarily classified into two
principal businesses: commercial and aerospace. Under its
commercial business, the company has Otis and the UTC Climate
Controls & Security division, which combined the former
Carrier and UTC Fire & Security divisions. The aerospace
business of the company consists of Sikorsky aircraft and the UTC
Propulsion & Aerospace Systems, which include UTC Aerospace
Systems and Pratt & Whitney divisions. Concurrently, United
Technologies presently has five principal business segments:
Otis; UTC Climate, Controls & Security; Pratt & Whitney;
UTC Aerospace Systems; and Sikorsky.
United Technologies currently has a Zacks Rank #3 (Hold), while
another company in the industry -
Federal Signal Corp.
) - carries a Zacks Rank #2 (Buy).