United Technologies Corp. (UTX, Financial) filed Quarterly Report for the period ended 2010-03-31.
United Technologies Corp. has a market cap of $71.54 billion; its shares were traded at around $76.4 with a P/E ratio of 16.3 and P/S ratio of 1.3. The dividend yield of United Technologies Corp. stocks is 2.2%. United Technologies Corp. had an annual average earning growth of 10.7% over the past 10 years. GuruFocus rated United Technologies Corp. the business predictability rank of 3.5-star.UTX is in the portfolios of Diamond Hill Capital of Diamond Hill Capital Management Inc, Oak Value of Oak Value Capital Management, David Williams of Columbia Value and Restructuring Fund, Kenneth Fisher of Fisher Asset Management, LLC, Jeremy Grantham of GMO LLC, David Dreman of Dreman Value Management, John Buckingham of Al Frank Asset Management, Inc., Steven Cohen of SAC Capital Advisors, Bill Frels of MAIRS & POWER INC, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC, George Soros of Soros Fund Management LLC, John Keeley of Keeley Fund Management, Dodge & Cox.
On March 1, 2010, we completed the previously announced acquisition of the GE Security business for approximately $1.8 billion, including debt assumed of $32 million. The GE Security business supplies security and fire safety technologies for commercial and residential applications through a broad product portfolio that includes fire detection and life safety systems, intrusion alarms, and video surveillance and access control systems. This business will be integrated into our UTC Fire & Security segment during the course of 2010 and will enhance UTC Fire & Securitys geographic diversity with the strong North American presence and increased product and technology offerings of GE Security. We recorded approximately $1.0 billion of goodwill and approximately $600 million of identified intangible assets in connection with this acquisition.
The general weakness of the U.S. dollar against certain currencies, such as the Euro, throughout most of the first quarter of 2010 generated a positive foreign currency impact on our operational results in the quarter of $.06 per share. This year-over-year impact includes a net $.02 per share beneficial impact from both foreign currency translation and hedging at P&WC. In the first quarter of 2010, adverse foreign currency translation at P&WC was more than offset by the beneficial impact of hedging. At P&WC, the weakness of the U.S. dollar in the first quarter of 2010 generated an adverse foreign currency translation impact as the majority of P&WCs revenues are denominated in U.S. dollars, while a significant portion of its costs are incurred in local currencies. To help mitigate the volatility of foreign currency exchange rates on our operating results, we maintain foreign currency hedging programs, the majority of which are entered into by P&WC. As a result of hedging programs currently in place, P&WCs 2010 full year operating results will include a beneficial impact of foreign currency translation, net of hedging, of approximately $100 million. For additional discussion of hedging, refer to Note 8 to the Condensed Consolidated Financial Statements. Diluted earnings per share for the first quarter of 2010 were also favorably impacted by approximately $.02 per share as a result of the shares repurchased since April 1, 2009 under our share repurchase program.
2010 Actions. During the first three months of 2010, we initiated restructuring actions relating to ongoing cost reduction efforts, including workforce reductions and the consolidation of field operations. We recorded net pre-tax restructuring and related charges totaling $49 million as follows: Otis $11 million, Carrier $8 million, UTC Fire & Security $9 million, Pratt & Whitney $19 million and Hamilton Sundstrand $2 million. The charges included $27 million in cost of sales and $22 million in selling, general and administrative expenses. Those costs included $42 million for severance and related employee termination costs and $7 million for facility exit and lease termination costs.
2009 Actions. During the first three months of 2010, we recorded net pre-tax restructuring and other charges and reversals totaling $19 million for restructuring actions initiated in 2009. The 2009 actions relate to ongoing cost reduction efforts, including workforce reductions, the consolidation of field operations and the consolidation of repair and overhaul operations. We recorded the charges for the first three months of 2010 as follows: Carrier $10 million, UTC Fire & Security $1 million and Pratt & Whitney $8 million. The charges included $14 million in cost of sales, $4 million in selling, general and administrative expenses and $1 million in other income. Those costs included $9 million for severance and related employee termination costs, $3 million for asset write-downs and $7 million for facility exit and lease termination costs.
feet of facilities. We are targeting the majority of the remaining workforce and all facility related cost reduction actions for completion during 2010 and 2011. Approximately 60% of the total pre-tax charge will require cash payments, which we will fund with cash generated from operations. During the first three months of 2010, we had cash outflows of approximately $79 million related to the 2009 actions. We expect to incur additional restructuring and related charges of $78 million to complete these actions. We expect recurring pre-tax savings to increase over the two-year period subsequent to initiating the actions to approximately $700 million annually.
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United Technologies Corp. has a market cap of $71.54 billion; its shares were traded at around $76.4 with a P/E ratio of 16.3 and P/S ratio of 1.3. The dividend yield of United Technologies Corp. stocks is 2.2%. United Technologies Corp. had an annual average earning growth of 10.7% over the past 10 years. GuruFocus rated United Technologies Corp. the business predictability rank of 3.5-star.UTX is in the portfolios of Diamond Hill Capital of Diamond Hill Capital Management Inc, Oak Value of Oak Value Capital Management, David Williams of Columbia Value and Restructuring Fund, Kenneth Fisher of Fisher Asset Management, LLC, Jeremy Grantham of GMO LLC, David Dreman of Dreman Value Management, John Buckingham of Al Frank Asset Management, Inc., Steven Cohen of SAC Capital Advisors, Bill Frels of MAIRS & POWER INC, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC, George Soros of Soros Fund Management LLC, John Keeley of Keeley Fund Management, Dodge & Cox.
Highlight of Business Operations:
Our growth strategy contemplates acquisitions. Our operations and results can be affected by the rate and extent to which appropriate acquisition opportunities are available, acquired businesses are effectively integrated, and anticipated synergies or cost savings are achieved. During the first three months of 2010, our investment in business acquisitions was approximately $2.1 billion, including debt assumed of $32 million, and principally reflected the acquisition of the GE Security business, and the acquisition of an equity stake in Clipper Windpower Plc (Clipper). The remainder of our investment in businesses for the first three months of 2010 consisted of a number of small acquisitions in both our commercial and aerospace businesses. We recorded the excess of the purchase price over the estimated fair value of the assets acquired as an increase in goodwill. As a result of acquisition activity, goodwill increased approximately $1.1 billion in the first three months of 2010.On March 1, 2010, we completed the previously announced acquisition of the GE Security business for approximately $1.8 billion, including debt assumed of $32 million. The GE Security business supplies security and fire safety technologies for commercial and residential applications through a broad product portfolio that includes fire detection and life safety systems, intrusion alarms, and video surveillance and access control systems. This business will be integrated into our UTC Fire & Security segment during the course of 2010 and will enhance UTC Fire & Securitys geographic diversity with the strong North American presence and increased product and technology offerings of GE Security. We recorded approximately $1.0 billion of goodwill and approximately $600 million of identified intangible assets in connection with this acquisition.
The general weakness of the U.S. dollar against certain currencies, such as the Euro, throughout most of the first quarter of 2010 generated a positive foreign currency impact on our operational results in the quarter of $.06 per share. This year-over-year impact includes a net $.02 per share beneficial impact from both foreign currency translation and hedging at P&WC. In the first quarter of 2010, adverse foreign currency translation at P&WC was more than offset by the beneficial impact of hedging. At P&WC, the weakness of the U.S. dollar in the first quarter of 2010 generated an adverse foreign currency translation impact as the majority of P&WCs revenues are denominated in U.S. dollars, while a significant portion of its costs are incurred in local currencies. To help mitigate the volatility of foreign currency exchange rates on our operating results, we maintain foreign currency hedging programs, the majority of which are entered into by P&WC. As a result of hedging programs currently in place, P&WCs 2010 full year operating results will include a beneficial impact of foreign currency translation, net of hedging, of approximately $100 million. For additional discussion of hedging, refer to Note 8 to the Condensed Consolidated Financial Statements. Diluted earnings per share for the first quarter of 2010 were also favorably impacted by approximately $.02 per share as a result of the shares repurchased since April 1, 2009 under our share repurchase program.
2010 Actions. During the first three months of 2010, we initiated restructuring actions relating to ongoing cost reduction efforts, including workforce reductions and the consolidation of field operations. We recorded net pre-tax restructuring and related charges totaling $49 million as follows: Otis $11 million, Carrier $8 million, UTC Fire & Security $9 million, Pratt & Whitney $19 million and Hamilton Sundstrand $2 million. The charges included $27 million in cost of sales and $22 million in selling, general and administrative expenses. Those costs included $42 million for severance and related employee termination costs and $7 million for facility exit and lease termination costs.
2009 Actions. During the first three months of 2010, we recorded net pre-tax restructuring and other charges and reversals totaling $19 million for restructuring actions initiated in 2009. The 2009 actions relate to ongoing cost reduction efforts, including workforce reductions, the consolidation of field operations and the consolidation of repair and overhaul operations. We recorded the charges for the first three months of 2010 as follows: Carrier $10 million, UTC Fire & Security $1 million and Pratt & Whitney $8 million. The charges included $14 million in cost of sales, $4 million in selling, general and administrative expenses and $1 million in other income. Those costs included $9 million for severance and related employee termination costs, $3 million for asset write-downs and $7 million for facility exit and lease termination costs.
feet of facilities. We are targeting the majority of the remaining workforce and all facility related cost reduction actions for completion during 2010 and 2011. Approximately 60% of the total pre-tax charge will require cash payments, which we will fund with cash generated from operations. During the first three months of 2010, we had cash outflows of approximately $79 million related to the 2009 actions. We expect to incur additional restructuring and related charges of $78 million to complete these actions. We expect recurring pre-tax savings to increase over the two-year period subsequent to initiating the actions to approximately $700 million annually.
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