FARMINGTON, Conn., April 23, 2019 /PRNewswire/ -- United
Technologies Corp. (NYSE: UTX) reported first quarter 2019 results
and increased its full year adjusted EPS outlook for 2019.
"United Technologies is off to a strong start in 2019," said UTC
Chairman and Chief Executive Officer Gregory Hayes. "Sales were up 20 percent with
all four businesses contributing to the robust 8 percent organic
growth in the quarter. Earnings and cash flow exceeded our
expectations for the quarter reinforcing our confidence in the full
year financial outlook, including our improved adjusted EPS range
of $7.80 to $8.00."
Hayes continued, "We made significant progress this quarter on
the integration of Rockwell Collins and saw excellent performance
from the combined Collins Aerospace business. Preparations for our
portfolio separation are progressing well, and we remain on track
to establish Otis and Carrier as independent companies in the first
half of 2020."
First quarter sales of $18.4 billion were up 20 percent over the
prior year, including 8 points of organic sales growth and 15
points of acquisition benefit offset by 3 points of foreign
exchange headwind. GAAP EPS of $1.56 was down 4 percent versus the prior
year and included 25 cents of
nonrecurring charges and 10 cents of
restructuring. Nonrecurring charges included 16 cents of
Rockwell Collins inventory step-up amortization, 6 cents of costs related to the UTC portfolio
separation activities and 3 cents of
other net charges. Adjusted EPS of $1.91 was up 8 percent. First quarter
results exceeded expectations primarily due to better than expected
Collins Aerospace and Otis results as well as a slightly favorable
effective tax rate.
Net income in the quarter was $1.3
billion, up 4 percent versus the prior year. Cash flow from
operations was $1.5 billion and
capital expenditures were $363
million, resulting in free cash flow of $1.1 billion.
In the quarter, Collins Aerospace commercial aftermarket sales
were up 64 percent and up 9 percent organically. Collins Aerospace
commercial aftermarket sales were up 12 percent on a pro forma
basis including Rockwell Collins. Pratt & Whitney commercial
aftermarket sales were up 1 percent. Pratt & Whitney continues
to expect commercial aftermarket sales to be up mid-single digits
for the full year. Equipment orders at Carrier were down 2 percent
organically in the quarter after being up 10 percent in the first
quarter of 2018. Otis new equipment orders were down 1 percent at
constant currency in the quarter and up 3 percent on a rolling
twelve month basis.
UTC updates its 2019 outlook and now anticipates:
- Adjusted EPS of $7.80 to
$8.00, up from $7.70 to $8.00;*
- There is no change in the Company's previously provided 2019
expectations for sales of $75.5 to
$77.0 billion, including organic
sales growth of 3 to 5 percent and free cash flow of $4.5 to $5.0
billion, including $1.5
billion of one-time cash payments related to the portfolio
separation.*
*Note: When we provide
expectations for adjusted EPS, the adjusted effective tax rate,
organic sales and free cash flow on a forward-looking basis, a
reconciliation of the differences between the non-GAAP expectations
and the corresponding GAAP measures generally is not available
without unreasonable effort. See "Use and Definitions of
Non-GAAP Financial Measures" below for additional information.
United Technologies Corp., based in Farmington, Connecticut, provides high
technology products and services to the building and aerospace
industries. By combining a passion for science with precision
engineering, the company is creating smart, sustainable solutions
the world needs. Additional information, including a webcast, is
available at
www.utc.com or https://edge.media-server.com/m6/p/je6zhxxa,
or to listen to the earnings call by phone, dial (877)
280-7280 between 8:10 a.m. and 8:30 a.m.
ET. To learn more about UTC, visit the website or follow the
company on Twitter: @UTC
Use and Definitions of Non-GAAP Financial Measures
United Technologies Corporation reports its financial results in
accordance with accounting principles generally accepted in
the United States ("GAAP").
We supplement the reporting of our financial information
determined under GAAP with certain non-GAAP financial
information. The non-GAAP information presented provides
investors with additional useful information, but should not be
considered in isolation or as substitutes for the related GAAP
measures. Moreover, other companies may define non-GAAP
measures differently, which limits the usefulness of these measures
for comparisons with such other companies. We encourage
investors to review our financial statements and publicly-filed
reports in their entirety and not to rely on any single financial
measure.
Adjusted net sales, organic sales, adjusted operating profit,
adjusted net income, adjusted earnings per share ("EPS"), and the
adjusted effective tax rate are non-GAAP financial measures.
Adjusted net sales represents consolidated net sales from
continuing operations (a GAAP measure), excluding significant items
of a non-recurring and/or nonoperational nature (hereinafter
referred to as "other significant items"). Organic sales
represents consolidated net sales (a GAAP measure), excluding the
impact of foreign currency translation, acquisitions and
divestitures completed in the preceding twelve months and other
significant items. Adjusted operating profit represents
income from continuing operations (a GAAP measure), excluding
restructuring costs and other significant items. Adjusted net
income represents net income from continuing operations (a GAAP
measure), excluding restructuring costs and other significant
items. Adjusted EPS represents diluted earnings per share from
continuing operations (a GAAP measure), excluding restructuring
costs and other significant items. The adjusted effective tax
rate represents the effective tax rate (a GAAP measure), excluding
restructuring costs and other significant items. For the
business segments, when applicable, adjustments of net sales,
operating profit and margins similarly reflect continuing
operations, excluding restructuring and other significant
items. Management believes that the non-GAAP measures just
mentioned are useful in providing period-to-period comparisons of
the results of the Company's ongoing operational
performance.
Free cash flow is a non-GAAP financial measure that represents
cash flow from operations (a GAAP measure) less capital
expenditures. Management believes free cash flow is a useful
measure of liquidity and an additional 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.
A reconciliation of the non-GAAP measures to the corresponding
amounts prepared in accordance with GAAP appears in the tables in
this Appendix. The tables provide additional information as
to the items and amounts that have been excluded from the adjusted
measures.
When we provide our expectation for adjusted EPS, adjusted
operating profit, adjusted effective tax rate, organic sales and
free cash flow on a forward-looking basis, a reconciliation of the
differences between the non-GAAP expectations and the corresponding
GAAP measures (expected diluted EPS from continuing operations,
operating profit, the effective tax rate, sales and expected cash
flow from operations) generally is not available without
unreasonable effort due to potentially high variability, complexity
and low visibility as to the items that would be excluded from the
GAAP measure in the relevant future period, such as unusual gains
and losses, the ultimate outcome of pending litigation,
fluctuations in foreign currency exchange rates, the impact and
timing of potential acquisitions and divestitures, and other
structural changes or their probable significance. The
variability of the excluded items may have a significant, and
potentially unpredictable, impact on our future GAAP results.
Cautionary Statement
This communication contains
statements which, to the extent they are not statements of
historical or present fact, constitute "forward-looking statements"
under the securities laws. From time to time, oral or written
forward-looking statements may also be included in other
information released to the public. These forward-looking
statements are intended to provide management's current
expectations or plans for our future operating and financial
performance, based on assumptions currently believed to be valid.
These forward-looking statements are intended to provide
management's current expectations or plans for our future operating
and financial performance, based on assumptions currently believed
to be valid. Forward-looking statements can be identified by the
use of words such as "believe," "expect," "expectations," "plans,"
"strategy," "prospects," "estimate," "project," "target,"
"anticipate," "will," "should," "see," "guidance," "outlook,"
"confident," "on track" and other words of similar meaning in
connection with a discussion of future operating or financial
performance or of the separation transactions. Forward-looking
statements may include, among other things, statements relating to
future sales, earnings, cash flow, results of operations, uses of
cash, share repurchases, tax rates and other measures of financial
performance or potential future plans, strategies or transactions
of United Technologies or the independent companies following
United Technologies' expected separation into three
independent companies, the anticipated benefits of the acquisition
of Rockwell Collins or the separation transactions, including
estimated synergies resulting from the Rockwell Collins
transaction, the expected timing of completion of the separation
transactions, estimated costs associated with such transactions and
other statements that are not historical facts. All forward-looking
statements involve risks, uncertainties and other factors that may
cause actual results to differ materially from those expressed or
implied in the forward-looking statements. For those statements, we
claim the protection of the safe harbor for forward-looking
statements contained in the U.S. Private Securities Litigation
Reform Act of 1995. Such risks, uncertainties and other factors
include, without limitation: (1) the effect of economic conditions
in the industries and markets in which we operate in the U.S. and
globally and any changes therein, including financial market
conditions, fluctuations in commodity prices, interest rates and
foreign currency exchange rates, levels of end market demand in
construction and in both the commercial and defense segments of the
aerospace industry, levels of air travel, financial condition of
commercial airlines, the impact of weather conditions and natural
disasters and the financial condition of our customers and
suppliers; (2) challenges in the development, production, delivery,
support, performance and realization of the anticipated benefits
(including our expected returns under customer contracts) of
advanced technologies and new products and services; (3) the scope,
nature, impact or timing of the expected separation transactions
and other acquisition and divestiture activity, including among
other things integration of acquired businesses into United
Technologies' existing businesses and realization of synergies and
opportunities for growth and innovation and incurrence of related
costs and expenses; (4) future levels of indebtedness, including
indebtedness that may be incurred in connection with the expected
separation transactions, and capital spending and research and
development spending; (5) future availability of credit and factors
that may affect such availability, including credit market
conditions and our capital structure; (6) the timing and scope of
future repurchases of our common stock, which may be suspended at
any time due to various factors, including market conditions and
the level of other investing activities and uses of cash; (7)
delays and disruption in delivery of materials and services from
suppliers; (8) company and customer-directed cost reduction efforts
and restructuring costs and savings and other consequences thereof;
(9) new business and investment opportunities; (10) our ability to
realize the intended benefits of organizational changes; (11) the
anticipated benefits of diversification and balance of operations
across product lines, regions and industries; (12) the outcome of
legal proceedings, investigations and other contingencies; (13)
pension plan assumptions and future contributions; (14) the impact
of the negotiation of collective bargaining agreements and labor
disputes; (15) the effect of changes in political conditions in the
U.S. and other countries in which United Technologies and its
businesses operate, including the effect of changes in U.S. trade
policies or the U.K.'s pending withdrawal from the European Union,
on general market conditions, global trade policies and currency
exchange rates in the near term and beyond; (16) the effect of
changes in tax (including U.S. tax reform enacted on December 22, 2017, which is commonly referred to
as the Tax Cuts and Jobs Act of 2017), environmental, regulatory
(including among other things import/export) and other laws and
regulations in the U.S. and other countries in which United
Technologies and its businesses operate; (17) negative effects of
the Rockwell Collins acquisition or of the announcement or pendency
of the separation transactions on the market price of United
Technologies' common stock and/or on its financial performance;
(18) risks relating to the integration of Rockwell Collins,
including the risk that the integration may be more difficult,
time-consuming or costly than expected or may not result in the
achievement of estimated synergies within the contemplated time
frame or at all; (20) the ability of United Technologies to retain
and hire key personnel; (21) the expected benefits and timing of
the separation transactions, and the risk that conditions to the
separation transactions will not be satisfied and/or that the
separation transactions will not be completed within the expected
time frame, on the expected terms or at all; (22) the expected
qualification of the separation transactions as tax-free
transactions for U.S. federal income tax purposes; (23) the
possibility that any consents or approvals required in connection
with the expected separation transactions will not be received or
obtained within the expected time frame, on the expected terms or
at all; (24) expected financing transactions undertaken in
connection with the separation transactions and risks associated
with additional indebtedness; (25) the risk that dissynergy costs,
costs of restructuring transactions and other costs incurred in
connection with the separation transactions will exceed our
estimates; and (26) the impact of the expected separation
transactions on our businesses and the risk that the separation
transactions may be more difficult, time-consuming or costly than
expected, including the impact on our resources, systems,
procedures and controls, diversion of management's attention and
the impact on relationships with customers, suppliers, employees
and other business counterparties. There can be no assurance that
the separation transactions or any other transaction described
above will in fact be consummated in the manner described or at
all. For additional information on identifying factors that may
cause actual results to vary materially from those stated in
forward-looking statements, see the reports of United Technologies
and Rockwell Collins on Forms S-4, 10-K, 10-Q and 8-K filed with or
furnished to the SEC from time to time. Any forward-looking
statement speaks only as of the date on which it is made, and
United Technologies assumes no obligation to update or revise such
statement, whether as a result of new information, future events or
otherwise, except as required by applicable law.
Contact:
|
Media Inquiries,
UTC
|
|
(860)
493-4149
|
|
|
|
Investor Relations,
UTC
|
|
(860)
728-7608
|
UTC-IR
United
Technologies Corporation
|
Condensed
Consolidated Statement of Operations
|
|
|
|
Quarter Ended
March 31,
|
|
|
(Unaudited)
|
(dollars in
millions, except per share amounts)
|
2019
|
|
2018
|
Net
Sales
|
$
|
18,365
|
|
|
$
|
15,242
|
|
Costs and
Expenses:
|
|
|
|
|
Cost of products and
services sold
|
13,707
|
|
|
11,280
|
|
|
Research and
development
|
728
|
|
|
554
|
|
|
Selling, general and
administrative
|
1,997
|
|
|
1,711
|
|
|
Total Costs and
Expenses
|
16,432
|
|
|
13,545
|
|
Other income,
net
|
112
|
|
|
231
|
|
Operating
profit
|
2,045
|
|
|
1,928
|
|
|
Non-service pension
(benefit)
|
(208)
|
|
|
(191)
|
|
|
Interest expense,
net
|
431
|
|
|
229
|
|
Income from
operations before income taxes
|
1,822
|
|
|
1,890
|
|
|
Income tax
expense
|
397
|
|
|
522
|
|
Net income from
operations
|
1,425
|
|
|
1,368
|
|
|
Less: Noncontrolling
interest in subsidiaries' earnings from operations
|
79
|
|
|
71
|
|
Net income
attributable to common shareowners
|
$
|
1,346
|
|
|
$
|
1,297
|
|
Earnings Per Share
of Common Stock:
|
|
|
|
|
Basic
|
$
|
1.58
|
|
|
$
|
1.64
|
|
|
Diluted
|
$
|
1.56
|
|
|
$
|
1.62
|
|
Weighted Average
Number of Shares Outstanding:
|
|
|
|
|
Basic
shares
|
853
|
|
|
790
|
|
|
Diluted
shares
|
861
|
|
|
800
|
|
|
See accompanying
Notes to Condensed Consolidated Financial Statements.
|
United
Technologies Corporation
|
Segment Net Sales
and Operating Profit
|
|
|
Quarter Ended
March 31,
|
|
(Unaudited)
|
(dollars in
millions)
|
2019
|
|
2018
|
Net
Sales
|
|
|
|
Otis
|
$
|
3,096
|
|
|
$
|
3,037
|
|
Carrier
|
4,323
|
|
|
4,376
|
|
Pratt &
Whitney
|
4,817
|
|
|
4,329
|
|
Collins Aerospace
Systems
|
6,513
|
|
|
3,817
|
|
Segment
Sales
|
18,749
|
|
|
15,559
|
|
Eliminations and
other
|
(384)
|
|
|
(317)
|
|
Consolidated Net
Sales
|
$
|
18,365
|
|
|
$
|
15,242
|
|
|
|
|
|
Operating
Profit
|
|
|
|
Otis
|
$
|
426
|
|
|
$
|
450
|
|
Carrier
|
529
|
|
|
592
|
|
Pratt &
Whitney
|
433
|
|
|
413
|
|
Collins Aerospace
Systems
|
856
|
|
|
588
|
|
Segment Operating
Profit
|
2,244
|
|
|
2,043
|
|
Eliminations and
other
|
(101)
|
|
|
(11)
|
|
General corporate
expenses
|
(98)
|
|
|
(104)
|
|
Consolidated
Operating Profit
|
$
|
2,045
|
|
|
$
|
1,928
|
|
|
|
|
|
|
|
Segment Operating
Profit Margin
|
|
|
|
|
|
Otis
|
|
13.8
|
%
|
|
|
14.8
|
%
|
Carrier
|
|
12.2
|
%
|
|
|
13.5
|
%
|
Pratt &
Whitney
|
|
9.0
|
%
|
|
|
9.5
|
%
|
Collins Aerospace
Systems
|
|
13.1
|
%
|
|
|
15.4
|
%
|
Segment Operating
Profit Margin
|
|
12.0
|
%
|
|
|
13.1
|
%
|
United
Technologies Corporation
|
Reconciliation of
Reported (GAAP) to Adjusted (Non-GAAP) Results
|
|
|
Quarter Ended
March 31,
|
|
(Unaudited)
|
(dollars in
millions - Income (Expense))
|
2019
|
|
2018
|
Income from
operations attributable to common shareowners
|
$
|
1,346
|
|
|
$
|
1,297
|
|
Restructuring
Costs included in Operating Profit:
|
|
|
|
Otis
|
(25)
|
|
|
(26)
|
|
Carrier
|
(33)
|
|
|
(14)
|
|
Pratt &
Whitney
|
(14)
|
|
|
—
|
|
Collins Aerospace
Systems
|
(39)
|
|
|
(27)
|
|
Eliminations and
other
|
(1)
|
|
|
(2)
|
|
Total
Restructuring Costs
|
(112)
|
|
|
(69)
|
|
|
|
|
|
Significant
non-recurring and non-operational items included in Operating
Profit:
|
|
|
|
Collins Aerospace
Systems
|
|
|
|
Loss on sale of
business
|
(25)
|
|
|
—
|
|
Amortization of
Rockwell Collins inventory fair value adjustment
|
(181)
|
|
|
—
|
|
Eliminations and
other
|
|
|
|
Transaction and
integration costs related to merger agreement with Rockwell
Collins,
Inc.
|
(9)
|
|
|
(30)
|
|
Costs associated with
the Company's intention to separate its commercial
businesses
|
(55)
|
|
|
—
|
|
|
(270)
|
|
|
(30)
|
|
Total impact on
Consolidated Operating Profit
|
(382)
|
|
|
(99)
|
|
Tax effect of
restructuring and significant non-recurring and non-operational
items
above
|
81
|
|
|
19
|
|
Significant
non-recurring and non-operational items included in Income Tax
Expense
|
|
|
|
Unfavorable income
tax adjustments related to the estimated impact of the U.S. tax
reform legislation enacted on December 22, 2017
|
—
|
|
|
(44)
|
|
|
—
|
|
|
(44)
|
|
Less: Impact on Net
Income Attributable to Common Shareowners
|
(301)
|
|
|
(124)
|
|
Adjusted income
attributable to common shareowners
|
$
|
1,647
|
|
|
$
|
1,421
|
|
|
|
|
|
Diluted Earnings
Per Share
|
$
|
1.56
|
|
|
$
|
1.62
|
|
Impact on Diluted
Earnings Per Share
|
(0.35)
|
|
|
(0.15)
|
|
Adjusted Diluted
Earnings Per Share
|
$
|
1.91
|
|
|
$
|
1.77
|
|
|
|
|
|
Effective Tax
Rate
|
21.8
|
%
|
|
27.6
|
%
|
Impact on Effective
Tax Rate
|
(0.1)
|
%
|
|
(2.6)
|
%
|
Adjusted Effective
Tax Rate
|
21.7
|
%
|
|
25.0
|
%
|
United
Technologies Corporation
|
Segment Operating
Profit Adjusted for Restructuring Costs and
|
Significant
Non-recurring and Non-operational Items (as reflected on the
previous page)
|
|
|
Quarter Ended
March 31,
|
|
(Unaudited)
|
(dollars in
millions)
|
2019
|
|
2018
|
Adjusted Operating
Profit
|
|
|
|
Otis
|
$
|
451
|
|
|
$
|
476
|
|
Carrier
|
562
|
|
|
606
|
|
Pratt &
Whitney
|
447
|
|
|
413
|
|
Collins Aerospace
Systems
|
1,101
|
|
|
615
|
|
Segment Operating
Profit
|
2,561
|
|
|
2,110
|
|
Eliminations and
other
|
(37)
|
|
|
19
|
|
General corporate
expenses
|
(97)
|
|
|
(102)
|
|
Adjusted
Consolidated Operating Profit
|
$
|
2,427
|
|
|
$
|
2,027
|
|
|
|
|
|
|
|
Adjusted Segment
Operating Profit Margin
|
|
|
|
|
|
Otis
|
|
14.6
|
%
|
|
|
15.7
|
%
|
Carrier
|
|
13.0
|
%
|
|
|
13.8
|
%
|
Pratt &
Whitney
|
|
9.3
|
%
|
|
|
9.5
|
%
|
Collins Aerospace
Systems
|
|
16.9
|
%
|
|
|
16.1
|
%
|
Adjusted Segment
Operating Profit Margin
|
|
13.7
|
%
|
|
|
13.6
|
%
|
United
Technologies Corporation
|
Components of
Changes in Net Sales
|
|
Quarter Ended
March 31, 2019 Compared with Quarter Ended March 31,
2018
|
|
|
|
|
|
|
|
|
|
|
|
Factors
Contributing to Total % Change in Net Sales
|
|
|
Organic
|
|
FX
Translation
|
|
Acquisitions /
Divestitures, net
|
|
Other
|
|
Total
|
Otis
|
|
7%
|
|
(5)%
|
|
—%
|
|
—%
|
|
2%
|
Carrier
|
|
3%
|
|
(3)%
|
|
(1)%
|
|
—%
|
|
(1)%
|
Pratt &
Whitney
|
|
12%
|
|
(1)%
|
|
—%
|
|
—%
|
|
11%
|
Collins Aerospace
Systems
|
|
10%
|
|
—%
|
|
61%
|
|
—%
|
|
71%
|
Consolidated
|
|
8%
|
|
(3)%
|
|
15%
|
|
—%
|
|
20%
|
|
|
|
|
|
|
|
|
|
|
|
Collins Aerospace
Systems
|
|
|
|
|
|
|
|
|
|
|
Commercial aftermarket
sales*
|
|
9%
|
|
(1)%
|
|
56%
|
|
—%
|
|
64%
|
|
*On a pro
forma basis, Collins Aerospace Systems commercial aftermarket sales
increased 12% calculated by combining the results of UTC with the
stand-alone results of Rockwell Collins for the pre-acquisition
periods adjusted for conformity, as if the acquisition had been
completed on January 1, 2017.
|
United
Technologies Corporation
|
Condensed
Consolidated Balance Sheet
|
|
|
March
31,
|
|
December 31,
|
|
2019
|
|
2018
|
(dollars in
millions)
|
(Unaudited)
|
|
(Unaudited)
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$
|
6,240
|
|
|
$
|
6,152
|
|
Accounts receivable,
net
|
13,574
|
|
|
14,271
|
|
Contract assets,
current
|
3,795
|
|
|
3,486
|
|
Inventory,
net
|
10,474
|
|
|
10,083
|
|
Other assets,
current
|
1,319
|
|
|
1,511
|
|
Total Current
Assets
|
35,402
|
|
|
35,503
|
|
Fixed assets,
net
|
12,210
|
|
|
12,297
|
|
Operating lease
right-of-use asset
|
2,533
|
|
|
—
|
|
Goodwill
|
48,392
|
|
|
48,112
|
|
Intangible assets,
net
|
26,280
|
|
|
26,424
|
|
Other
assets
|
12,563
|
|
|
11,875
|
|
Total
Assets
|
$
|
137,380
|
|
|
$
|
134,211
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
Short-term
debt
|
$
|
4,182
|
|
|
$
|
4,345
|
|
Accounts
payable
|
10,364
|
|
|
11,080
|
|
Accrued
liabilities
|
10,750
|
|
|
10,223
|
|
Contract liabilities,
current
|
6,107
|
|
|
5,720
|
|
Total Current
Liabilities
|
31,403
|
|
|
31,368
|
|
Long-term
debt
|
41,004
|
|
|
41,192
|
|
Operating lease
liabilities
|
2,020
|
|
|
—
|
|
Other long-term
liabilities
|
20,898
|
|
|
20,932
|
|
Total
Liabilities
|
95,325
|
|
|
93,492
|
|
Redeemable
noncontrolling interest
|
109
|
|
|
109
|
|
Shareowners'
Equity:
|
|
|
|
Common
Stock
|
22,489
|
|
|
22,438
|
|
Treasury
Stock
|
(32,511)
|
|
|
(32,482)
|
|
Retained
earnings
|
59,279
|
|
|
57,823
|
|
Accumulated other
comprehensive loss
|
(9,519)
|
|
|
(9,333)
|
|
Total Shareowners'
Equity
|
39,738
|
|
|
38,446
|
|
Noncontrolling
interest
|
2,208
|
|
|
2,164
|
|
Total
Equity
|
41,946
|
|
|
40,610
|
|
Total Liabilities
and Equity
|
$
|
137,380
|
|
|
$
|
134,211
|
|
Debt
Ratios:
|
|
|
|
|
|
Debt to total
capitalization
|
|
52
|
%
|
|
|
53
|
%
|
Net debt to net
capitalization
|
|
48
|
%
|
|
|
49
|
%
|
|
See
accompanying Notes to Condensed Consolidated Financial
Statements.
|
United
Technologies Corporation
|
Condensed
Consolidated Statement of Cash Flows
|
|
|
Quarter Ended
March 31,
|
|
(Unaudited)
|
(dollars in
millions)
|
2019
|
|
2018
|
Operating
Activities:
|
|
|
|
Net income from
operations
|
$
|
1,425
|
|
|
$
|
1,368
|
|
Adjustments to
reconcile net income from operations to net cash flows provided
by
operating activities:
|
|
|
|
Depreciation and
amortization
|
942
|
|
|
581
|
|
Deferred income tax
provision
|
21
|
|
|
42
|
|
Stock compensation
cost
|
64
|
|
|
55
|
|
Change in working
capital
|
(445)
|
|
|
(972)
|
|
Global pension
contributions
|
(32)
|
|
|
(37)
|
|
Canadian government
settlement
|
(38)
|
|
|
(221)
|
|
Other operating
activities, net
|
(437)
|
|
|
(363)
|
|
Net cash flows
provided by operating activities
|
1,500
|
|
|
453
|
|
Investing
Activities:
|
|
|
|
Capital
expenditures
|
(363)
|
|
|
(337)
|
|
Acquisitions and
dispositions of businesses, net
|
114
|
|
|
(90)
|
|
Increase in
collaboration intangible assets
|
(87)
|
|
|
(78)
|
|
Receipts (payments)
from settlements of derivative contracts
|
92
|
|
|
(221)
|
|
Other investing
activities, net
|
(150)
|
|
|
(250)
|
|
Net cash flows used
in investing activities
|
(394)
|
|
|
(976)
|
|
Financing
Activities:
|
|
|
|
Issuance (payment) of
long-term debt, net
|
6
|
|
|
(975)
|
|
(Decrease) increase
in short-term borrowings, net
|
(349)
|
|
|
666
|
|
Dividends paid on
Common Stock
|
(609)
|
|
|
(535)
|
|
Repurchase of Common
Stock
|
(29)
|
|
|
(25)
|
|
Other financing
activities, net
|
(96)
|
|
|
(41)
|
|
Net cash flows used
in financing activities
|
(1,077)
|
|
|
(910)
|
|
Effect of foreign
exchange rate changes on cash and cash equivalents
|
41
|
|
|
119
|
|
Net increase
(decrease) in cash, cash equivalents and restricted cash
|
70
|
|
|
(1,314)
|
|
Cash, cash
equivalents and restricted cash, beginning of period
|
6,212
|
|
|
9,018
|
|
Cash, cash
equivalents and restricted cash, end of period
|
6,282
|
|
|
7,704
|
|
Less: Restricted
cash
|
42
|
|
|
37
|
|
Cash and cash
equivalents, end of period
|
$
|
6,240
|
|
|
$
|
7,667
|
|
|
See accompanying
Notes to Condensed Consolidated Financial Statements.
|
United
Technologies Corporation
|
Free Cash Flow
Reconciliation
|
|
|
Quarter Ended
March 31,
|
|
(Unaudited)
|
(dollars in
millions)
|
2019
|
|
2018
|
|
|
|
|
|
|
Net income
attributable to common shareowners
|
$
|
1,346
|
|
|
|
$
|
1,297
|
|
|
Net cash flows
provided by operating activities
|
$
|
1,500
|
|
|
|
$
|
453
|
|
|
Net cash flows
provided by operating activities as a percentage of net
income attributable to common shareowners
|
|
111
|
%
|
|
|
35
|
%
|
Capital
expenditures
|
(363)
|
|
|
|
(337)
|
|
|
Capital expenditures
as a percentage of net income attributable to
common shareowners
|
|
(27)
|
%
|
|
|
(26)
|
%
|
Free cash
flow
|
$
|
1,137
|
|
|
|
$
|
116
|
|
|
Free cash flow as a
percentage of net income attributable to common
shareowners
|
|
84
|
%
|
|
|
9
|
%
|
Notes to Condensed
Consolidated Financial Statements
|
|
|
Certain
reclassifications have been made to the prior year amounts to
conform to the current year presentation.
|
|
|
|
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.
|
View original
content:http://www.prnewswire.com/news-releases/united-technologies-reports-first-quarter-2019-results-raises-2019-adjusted-eps-outlook-300836000.html
SOURCE United Technologies Corp.