UTC will operate as a leading aerospace company comprised of Collins Aerospace Systems and the engine maker Pratt & Whitney, while Otis Elevator will be spun out and the Climate, Controls & Security business, including UTC Power, will be renamed Carrier. The split is expected to complete in 2020.
"Our decision to separate United Technologies is a pivotal moment in our history and will best position each independent company to drive sustained growth, lead its industry in innovation and customer focus, and maximize value creation," said Gregory Hayes, Chairman and Chief Executive Officer of UTC. "Our products make modern life possible for billions of people. I'm confident that each company will continue our proud history of performance, excellence and innovation while building an even brighter future. As standalone companies, United Technologies, Otis and Carrier will be ready to solve our customers' biggest challenges, provide rewarding career opportunities, and contribute positively to communities around the world.
Collins Aerospace was formed through the combination of UTC Aerospace Systems and Rockwell Collins this week and had sales of $39bn last year. "Collins Aerospace brings together two great companies with unmatched expertise in developing electrical, mechanical and software solutions," said Hayes. "We will have a laser focus on developing innovative solutions for customers and generating strong returns for shareowners."
The combination of all three former UTC companies will have a turnover of $65bn. Otis has sales of $12.3 bn with 2m elevators under maintenance, and is moving into digitally-enabled field service capabilities.
Carrier supplies HVAC, refrigeration, fire, security and building automation technologies with sales of $17.8 bn last year through brands such as Carrier, Kidde, Edwards, LenelS2 and Automated Logic. This has been UTC's entry into the Internet of Things (ioT) and will compete directly with the Honeywell spinout Resideo.