United Technologies to sell more businesses
Friday, June 15, 2012
HARTFORD, Conn. (AP) — The chief financial officer of United Technologies Corp. said Thursday that the industrial conglomerate will sell more businesses.
The Hartford, Conn., parent company of jet engine maker Pratt & Whitney, Otis elevator, Sikorsky Aircraft and other companies, is selling several units to raise as much as $3 billion to help finance its $16.5 billion purchase of airplane parts manufacturer Goodrich Corp.
UTC announced in March that it will sell its rocket fuel and wind power companies and three industrial units of its aerospace parts maker Hamilton Sundstrand.
Chief Financial Officer Greg Hayes, speaking at an investor analysts conference in Chicago, said United Technologies is now looking at “strategic alternatives” for UTC Power, the company’s fuel cell business, and a “couple other” subsidiaries.
“We’re not done yet,” he said. “There are a few more to go.”
Hayes did not specify divisions other than UTC Power that it might sell. UTC Power, based in South Windsor, Conn., is among the smallest United Technologies units with 405 employees.
It’s the second time in as many months that a top executive of United Technologies signaled that UTC Power will likely be unloaded.
United Technologies will make decisions at the end of the second quarter on which companies to sell, Hayes said. He said the company borrowed about $15 billion and will pay back $5 billion before the end of year.
“A big piece of that comes from the divestiture of the Hamilton industrial businesses but there are some other small divestitures that will help,” he said.
Hayes criticized elected officials, particularly President Barack Obama, for failing to tackle long-term federal debt. He said recommendations by the Simpson-Bowles Commission, a bipartisan panel that outlined a broad deficit-cutting plan, offered a “reasonable solution” to deal with the federal budget deficit.
“It’s unfortunate that, although the president commissioned these people to come up with this, he has not endorsed Simpson-Bowles,” he said. “We have a path to a solution. We’re just lacking political leadership.”
Shares of United Technologies rose 60 cents Thursday and ended trading at $74.14.
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