United Technologies: plans to split into three companies

(CercleFinance.com) - US conglomerate United Technologies plans to split into three independent companies now that it has completed the acquisition of Rockwell Collins.


UTC said the separation will result in three industry-leading companies, with United Technologies - comprising Collins Aerospace Systems and Pratt & Whitney - set to become a "preeminent" systems supplier for the aerospace and defense industry.

The two other entities will be Otis, a manufacturer of elevators and escalators, and Carrier, a provider of refrigeration, fire safety and security products.

Due to the portfolio separation, United Technologies updated its 2018 outlook and now expects sales of between 64.5 billion dollars and 65 billion dollars, up from a range of 64-64.5 billion dollars previously.

However, due to the dilution from the Rockwell Collins acquisition, its full-year adjusted EPS estimate has been cut to 7.10-7.20 dollars, from 7.20-7.30 dollars previously.

Shares of United Technologies were up 1.7% in pre-market trading after this announcement.

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