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UTC's Fourth-Quarter Earnings Per Share Up 20 Percent;2000 Earnings Per Share Increased 18 Percent

HARTFORD, Conn.---United Technologies Corp. today reported a 20 percent increase in fourth-quarter earnings per share to $0.84 compared with $0.70 in 1999, excluding the restructuring charge and other actions in the prior year's quarter. Net income was $426 million, 18 percent above the $362 million reported in 1999 and also before prior year restructuring and other actions.

Full-year 2000 diluted earnings per share increased 18 percent to $3.55 on net income of $1.81 billion, from $3.01 and $1.53 billion, respectively, in 1999.

The impact of foreign currency translation reduced fourth-quarter and full-year diluted earnings per share by $0.04 and $0.11, respectively.

Revenues for the fourth quarter increased 4 percent to $6.8 billion, 7 percent before foreign currency translation. Full-year revenues increased 10 percent to $26.6 billion and increased 13 percent before foreign currency translation.

Available cash flow before spending associated with the 1999 restructuring and other actions was $435 million in the quarter and $1.83 billion for the year, exceeding net income in both periods.

George David, chairman and chief executive officer, said, "We turned in another solid quarter, with earnings per share up 20 percent even after a $0.04 adverse foreign exchange impact. Available cash flow again exceeded net income, for the quarter and the year. Our outlook remains more of the same in 2001, with earnings per share growth anticipated at 15 percent and available cash flow in the range of net income. While the U.S. economy is slowing, UTC's global and product diversity and our continuing and successful efforts to improve performance throughout our operations sustain these expectations.''

Acquisitions totaled $836 million in the fourth quarter, including Carrier's purchase of Specialty Equipment Companies. In 2000, UTC completed more than 30 acquisitions in its core commercial and aerospace businesses for $1.34 billion.

UTC repurchased 1.8 million shares of common stock for $127 million in the fourth quarter, bringing full-year share repurchases to 13.6 million shares for $800 million.

At year-end, debt to capital was 39 percent, 1 percentage point higher than a year ago. Net debt to capital ended the year at 35 percent.

In 1999, UTC reported full-year diluted earnings per share of $3.01 while recording more than $1.15 billion in restructuring and other charges, which were largely offset by the onetime gain associated with the sale of the corporation's automotive unit. To facilitate comparisons, the following comments regarding fourth-quarter segment results exclude the impact of these restructuring and other charges on the fourth-quarter 1999 results.

Operating profit at Otis grew 14 percent in the quarter on 4 percent revenue growth. Before the impact of foreign currency translation, operating profit increased 26 percent on 13 percent revenue growth. At constant currency rates, all regions contributed higher operating profit from previous cost reduction actions and increased revenues, in part from acquisitions.

Carrier's operating profit increased 10 percent on 4 percent higher revenues. Before currency translation, operating profit increased 16 percent on 8 percent higher revenues. Continued growth in the commercial heating, ventilation and air conditioning (HVAC) business and, to a lesser extent, margin improvement in the North American residential business, more than offset weakness in the commercial refrigeration business. Revenue growth benefited from acquisitions, and all regions experienced increases before foreign currency translation

Pratt & Whitney's operating profit increased 21 percent on 3 percent revenue growth. Lower costs in the commercial business and the strong performance in the military business more than offset higher engineering and development spending.

Flight segment operating profit increased 21 percent on revenue improvement of 5 percent reflecting Sundstrand integration synergies and higher helicopter shipments at Sikorsky.

United Technologies Corp., based in Hartford, Connecticut, provides a broad range of high-technology products and support services to the building systems and aerospace industries.

(Editor's Note: Click here for full statement on 2000 financial results)


UTC's Fourth-Quarter Earnings Per Share Up 20 Percent;2000 Earnings Per Share Increased 18 Percent