Exhibit 99.1
Contact: Paul Jackson | FOR IMMEDIATE RELEASE | |
(860) 728-7912 | www.utc.com |
UTC REPORTS 3RD QUARTER EARNINGS PER SHARE 5% HIGHER AND $1 BILLION IN CASH FLOW FROM OPERATIONS; CONFIRMS CONSENSUS ESTIMATE OF $4.65 FOR FULL YEAR EARNINGS PER SHARE
HARTFORD, Conn., October 16, 2003 - United Technologies Corp. (NYSE: UTX) today reported third quarter 2003 earnings per share increased to $1.27, up 6 cents or 5% from the same quarter last year. Net income rose 4 percent to $639 million. Consolidated revenues rose 9 percent to $8.0 billion, primarily due to the acquisition of Chubb plc during the quarter.
Third quarter cash flow from operations was $1.0 billion including a voluntary pension contribution of $125 million. Capital expenditures for the quarter were $126 million. Acquisition related spending was $2.1 billion, principally for Chubb. The debt to total capital ratio was 35 percent, 2 points below December 31, 2002.
"UTC's global business balance and productivity led performance have again overcome unfavorable market conditions in some sectors, notably commercial aviation," said Chairman and Chief Executive Officer George David. "We're confirming the consensus full year earnings estimate of $4.65," he said.
"In the quarter, Otis and Carrier reported double digit operating profit growth. Pratt & Whitney and Hamilton Sundstrand military revenues also increased double digits. Of particular note, we completed assembly of the first production configuration F135 engine for the Joint Strike Fighter ahead of schedule during the quarter. Foreign currency translation also boosted results in the quarter," David continued. "Although commercial aviation remains at the low end of the cycle, we did see some improvement in aftermarket volumes from the prior and first quarters."
"Cash flow was again exceptionally strong, exceeding net income even net of the $125 million pension plan contribution and capital expenditures. On the same basis, we now expect cash flow in the range of net income for the year. Exceptionally strong cash flow in part supported UTC's 30% dividend increase in the quarter."
For the first nine months of 2003, UTC reported EPS of $3.53, 5 percent above last year's $3.36. Net income increased to $1.77 billion from $1.70 billion. Cash flow from operations was $2.08 billion and after capital expenditures of $322 million, equaled net income. Revenues for the first three quarters were $22.4 billion, up 7 percent from the same period in 2002.
The accompanying tables include information integral to assessing the company's financial position, operating performance, and cash flow.
United Technologies Corp., based in Hartford, Connecticut, is a diversified company that provides a broad range of high technology products and support services to the building systems and aerospace industries.
This release includes "forward looking statements" that are subject to risks and uncertainties. For information identifying economic, political, climatic, currency, regulatory, technological, competitive and some other important factors that could cause actual results to differ materially from those anticipated in the forward looking statements, see UTC's SEC filings as updated from time to time, including, but not limited to, the discussion included in the Business section of UTC's Annual Report on Form 10-K under the headings "General", "Description of Business by Segment" and "Other Matters Relating to the Corporation's Business as a Whole" and the information included in UTC's 10-K and 10-Q reports under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations."
# # #
UNITED TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Millions, except per share amounts) | Quarter Ended | Nine Months Ended September 30, (Unaudited) | ||||||
2003 | 2002 | 2003 | 2002 | |||||
$
$
$
$
20,997
$
$
$
$
See accompanying Note to Condensed Consolidated Financial Statements.
UNITED TECHNOLOGIES CORPORATION
SEGMENT REVENUES and OPERATING PROFIT
(Unaudited) (Millions) | Quarter Ended September 30, | Nine Months Ended September 30, | ||||||
2003 | 2002 | 2003 | 2002 | |||||
Revenues | ||||||||
Otis | $ | 1,941 | $ | 1,745 | $ | 5,717 | $ | 4,961 |
Carrier | 2,453 | 2,340 | 7,050 | 6,777 | ||||
Pratt & Whitney | 1,859 | 1,882 | 5,538 | 5,597 | ||||
Flight | 1,424 | 1,500 | 4,133 | 4,088 | ||||
Segment Revenue | 7,677 | 7,467 | 22,438 | 21,423 | ||||
Eliminations and other | 277 | (168) | 8 | (426) | ||||
Consolidated Revenues | $ | 7,954 | $ | 7,299 | $ | 22,446 | $ | 20,997 |
Operating Profit | ||||||||
Otis | $ | 350 | $ | 285 | $ | 1,000 | $ | 782 |
Carrier | 304 | 276 | 818 | 672 | ||||
Pratt & Whitney | 281 | 333 | 826 | 986 | ||||
Flight | 199 | 199 | 559 | 549 | ||||
Segment Operating Profit | 1,134 | 1,093 | 3,203 | 2,989 | ||||
Eliminations and other | (35) | (43) | (120) | - | ||||
General corporate expenses | (51) | (48) | (165) | (159) | ||||
Consolidated Operating Profit | $ | 1,048 | $ | 1,002 | $ | 2,918 | $ | 2,830 |
Quarter ended September 30:
During the third quarter of 2002, the Corporation recorded a curtailment gain in the segments associated with the modification of its post-retirement medical and life insurance benefits. The gain was more than offset by restructuring and related charges of $62 million recorded in the segments in the quarter. Restructuring and related charges for the third quarter ended 2003 were approximately $11 million.
Nine months ended September 30:
Segment operating profit for the nine months ended September 30, 2002 includes restructuring and related charges of approximately $195 million. The amounts recorded in the first quarter were as follows: Otis - $16 million, Carrier - $74 million, Pratt & Whitney - $9 million and Flight Systems - $5 million. Charges of $29 million and $62 million were recorded in both the commercial and aerospace businesses during the second and third quarters, respectively.
See accompanying Note to Condensed Consolidated Financial Statements.
UNITED TECHNOLOGIES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(Millions) | September 30, | December 31, | ||
Assets | ||||
Cash and cash equivalents | $ | 1,421 | $ | 2,080 |
Accounts receivable, net | 4,971 | 4,277 | ||
Inventories and contracts in progress, net | 3,963 | 3,803 | ||
Other current assets | 1,789 | 1,675 | ||
Total Current Assets | 12,144 | 11,835 | ||
Fixed assets, net | 4,899 | 4,587 | ||
Goodwill, net | 9,135 | 6,981 | ||
Other assets | 7,884 | 5,771 | ||
$
$
Liabilities and Shareowners' Equity
$
$
Common Stock
12,137
10,836
in equity
(2,533)
(2,977)
$
$
See accompanying Note to Condensed Consolidated Financial Statements.
UNITED TECHNOLOGIES CORPORATION
CONDENSED CASH FLOWS FROM OPERATIONS
(Unaudited) | |||||||||||
(Millions) | Quarter Ended September 30, | Nine Months Ended September 30, | |||||||||
2003 | 2002 | 2003 | 2002 | ||||||||
Net Income | $ | 639 | $ | 612 | $ | 1,773 | $ | 1,703 | |||
Adjustments to reconcile net income |
See accompanying Note to Condensed Consolidated Financial Statements.
UNITED TECHNOLOGIES CORPORATION
Note to Condensed Consolidated Financial Statements