United Tech Wins $205 Million in New Defense Contracts

The Department of Defense on Wednesday announced 13 new contracts that are worth $1.14 billion in aggregate. Honeywell International claimed roughly 44% of the funds on offer, but United Technologies (NYSE: UTX ) came in a not-too-distant second.

Sikorsky Support Services received an indefinite-delivery requirements contract worth $110.8 million to provide organizational, intermediate, and depot-level maintenance to support U.S. Navy T-34, T-44, and T-6 training aircraft built by Beechcraft. Sikorsky will also provide labor, equipment, and tooling needed to support the nearly 370 training aircraft covered under the contract through October 2014. Read more UTX.

United Technologies Profit Beats Estimates on Plane Components

United Technologies Corp. (UTX) reported third-quarter profit that beat analysts’ estimates, driven by sales of air conditioners and aircraft components.

Net income rose 1.2 percent to $1.43 billion, or $1.55 a share, from $1.42 billion, or $1.37, a year earlier, the Hartford, Connecticut-based company said today in a statement. Analysts projected $1.54, the average of 20 estimates compiled by Bloomberg.

United Technologies also boosted the lower end of its full-year earnings per share forecast today to a range of $6.10 to $6.15, up from $6 to $6.15, previously. Full-year sales will be about $63 billion, down from a prior projection of $64 billion.

The “weakness in military aerospace markets and slow pace of recovery in Europe” will damp annual revenue, Chief Executive Officer Louis Chenevert said today. read more about UTX.

Foreign Cash May Mean Foreign Deals At United Tech

When United Technologies Corp.'s UTX -0.26% acquisition appetite returns, the company may favor foreign targets as it seeks a way to use the cash it has sitting overseas, Chief Financial Officer Greg Hayes said.

Of the $4.9 billion in cash the industrial conglomerate held at the end of June, “most of that is sitting overseas — if not all,” Mr. Hayes said. “One of the benefits of foreign cash is it does give you the opportunity to make investments overseas and to do acquisitions overseas. So as you think of the M&A agenda, that is probably where to look next.”

It may be awhile before more big M&A deals materialize. The conglomerate is still digesting its $16.4 billion acquisition of Goodrich and won’t be coming to the table any time soon. “I wouldn’t look for anything big coming out of UTX for the next few years,” Mr. Hayes said on a conference call. Read more: United Technologies Corp

UTC Stock Analysis: Sell at 52-week High

United Technologies Corporation (UTC) (NYSE: UTX) is an industrial conglomerate that provides a broad range of high-technology products and services. Founded in 1975 and headquartered in Hartford, Connecticut, it operates through its five subsidiaries, namely Otis Elevator Company (OTIS), UTC Climate, Controls & Security (CC&S), Pratt & Whitney (P&W), Sikorsky and UTC Aerospace Systems (UTCAS).

UTC has been restructuring its portfolio to achieve operational efficiencies. It has recently completed a number of acquisitions and divestitures to lower costs. Read More: United Technologies Corporation (UTC)

United Technologies: The Future Looks Divided

United Technologies Corporation (UTC) (Ticker: UTX) is an industrial conglomerate with operations spread across military technology, escalator and elevator manufacturing, climate control, in addition to security services.

UTC has been providing investors with steady returns for more than 75 years, and the company is considered a “Dividend Achiever” for consistently raising dividends for over a decade. UTC has in fact been raising its annual dividends over the last 17 years. We will look at the company’s ability to sustain its dividends as it faces uncertainties in the near future.

Even though the company is well diversified across multiple industries, UTC’s many segments are unsure about their future. Its trademark OTIS elevator brand and its Climate, Control and Fire segment currently have a large exposure to China as well as other emerging markets. A slowdown in those segments could considerably hurt its segment revenues. Read more: United Technologies Corporation (UTC) (Ticker: UTX)