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UNITED STATES FORM 8-K Current Report Pursuant to Section
13 or 15(d) of Date of Report (Date of earliest
event reported): October 16, 2003 UNITED TECHNOLOGIES CORPORATION Delaware 1-812 06-0570975 One Financial Plaza Registrant's telephone number,
including area code N/A Item 12. Results of Operations and Financial
Condition On
October 16, 2003, United Technologies Corporation issued a press release
announcing its third quarter 2003 results. The press release is attached hereto as Exhibit 99.1. SIGNATURE Pursuant to the requirements of the
Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized. INDEX TO EXHIBITS Exhibit 99.1 FOR IMMEDIATE RELEASE 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.
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
The Securities Exchange Act of 1934
(exact name of registrant as specified in its charter)
(State or other jurisdiction of
incorporation or organization)
(Commission File Number)
(I.R.S. Employer Identification No.)
Hartford, Connecticut 06103
(Address of principal executive offices, including Zip Code)
(860) 728-7000
(Former name or former address, if changed since last report)
UNITED TECHNOLOGIES CORPORATION
(Registrant)
Date: October
16,
2003
By: /s/ Gregory
J. Hayes
Gregory J. Hayes
Vice President,
Controller
Exhibit
NumberExhibit
DescriptionPage
99.1
Press Release, dated
October 16, 2003, issued by United Technologies Corporation . . . . . . . . . .
. . . . 1
Contact: Paul
Jackson
(860) 728-7912
"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
(Millions, except per share amounts) |
Quarter Ended |
Nine Months Ended September 30, (Unaudited) |
||||||
2003 |
2002 |
2003 |
2002 | |||||
|
||||||||
Revenues |
$ |
7,954 |
$ |
7,299 |
$ |
22,446 |
$ |
20,997 |
|
||||||||
Cost and Expenses | ||||||||
Cost of goods and services sold | 5,713 | 5,238 | 16,198 | 14,913 | ||||
Research and development | 260 | 270 | 776 | 913 | ||||
Selling, general and administrative | 933 | 789 | 2,554 | 2,341 | ||||
Interest | 95 | 93 | 279 | 288 | ||||
7,001 | 6,390 | 19,807 | 18,455 | |||||
Income before income taxes and minority interests | 953 | 909 | 2,639 | 2,542 | ||||
Income taxes | (267) | (258) | (739) | (722) | ||||
Minority interests | (47) | (39) | (127) | (117) | ||||
Net Income |
$ |
639 |
$ |
612 |
$ |
1,773 |
$ |
1,703 |
Earnings Per Share of Common Stock | ||||||||
Basic | $ | 1.34 | $ | 1.28 | $ | 3.73 | $ | 3.55 |
Diluted | $ | 1.27 | $ | 1.21 | $ | 3.53 | $ | 3.36 |
Average Shares (in millions) | ||||||||
Basic | 470 | 473 | 469 | 473 | ||||
Diluted | 504 | 505 | 502 | 506 | ||||
See accompanying Note to Condensed Consolidated Financial Statements.
(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.
(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 | ||
|
||||
Total Assets | $ |
34,062 | $ |
29,174 |
Liabilities and Shareowners' Equity |
||||
Short-term debt | $ |
806 | $ |
241 |
Accounts payable | 2,695 | 2,095 | ||
Accrued liabilities | 6,458 | 5,651 | ||
Total Current Liabilities | 9,959 | 7,987 | ||
|
||||
Long-term debt | 4,650 | 4,632 | ||
Other liabilities | 8,908 | 7,772 | ||
ESOP Convertible Preferred Stock, net | 426 | 428 | ||
Shareowners' Equity: | ||||
Common Stock |
5,756 | 5,447 | ||
Treasury Stock | (5,241) | (4,951) | ||
Retained Earnings |
12,137 |
10,836 |
||
Accumulated other non-shareowners' changes in equity |
(2,533) |
(2,977) |
||
10,119 | 8,355 | |||
|
||||
Total Liabilities and Shareowners' Equity | $ |
34,062 | $ |
29,174 |
Debt Ratios (Net debt is total debt less cash): | ||||
Debt to total capitalization (debt plus equity) | 35% | 37% | ||
Net debt to total capitalization | 29% | 25% |
See accompanying Note to Condensed Consolidated Financial Statements.
(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 | |||||||||||
to net cash flows provided by operating activities | |||||||||||
Depreciation and amortization | 203 | 173 | 570 | 537 | |||||||
Deferred income taxes and minority interest | 152 | 113 | 404 | 315 | |||||||
Changes in working capital | 125 | 7 | (84) | (120) | |||||||
Contribution to domestic pension plans | (125) | - | (725) | - | |||||||
Other, net | 28 | (40) | 139 | (145) | |||||||
Net Cash Flows Provided by Operating Activities | $ | 1,022 | $ | 865 | $ | 2,077 | $ | 2,290 |
See accompanying Note to Condensed Consolidated Financial Statements.
UNITED TECHNOLOGIES CORPORATION
Note to Condensed Consolidated Financial
Statements