February 21, 2018 / 11:42 PM / a month ago

United Tech to decide on breakup of businesses by end of 2018

(Reuters) - Aero parts maker United Technologies Corp (UTX.N) is exploring a breakup of its business portfolio, including jet engines, elevators and air conditioners, Chief Executive Greg Hayes said at the Barclays investor conference in Miami on Wednesday.

Hayes said a decision on whether UTC, which makes Otis Elevators, Pratt & Whitney aircraft engines and Carrier air conditioners, would be a more “valuable property together” or “better off in three separate businesses” by the end of 2018.

“The real question is do you get a significant multiple expansion by having separate companies versus the conglomerate or the four businesses of UTC? Tough, tough questions. I would tell you that we’re looking at all of those possibilities,” Hayes said.

The CEO’s comment comes nearly a month after he indicated that a review was possible only after the closure of its acquisition of avionics and interiors maker Rockwell Collins Inc (COL.N) by the third quarter of 2018.

Hayes said on Wednesday if the company were to split, its aerospace business would have about $45 billion to $50 billion in sales, Otis elevators unit about $12 billion to $13 billion, and the climate-control business about $17 billion to $18 billion.

    “That’s the question for the board. That’s the question we continue to study,” he said.

    Reporting by Ankit Ajmera in Bengaluru; Editing by Arun Koyyur

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