Edition:
United Kingdom

United Technologies says Intention To Separate Into Three Independent Companies


Monday, 26 Nov 2018 

Nov 26 (Reuters) - United Technologies Corp ::UNITED TECHNOLOGIES ANNOUNCES INTENTION TO SEPARATE INTO THREE INDEPENDENT COMPANIES; COMPLETES ACQUISITION OF ROCKWELL COLLINS.TAX-FREE SEPARATION TO UTC SHAREOWNERS FOR U.S. FEDERAL INCOME TAX PURPOSES EXPECTED TO BE COMPLETED IN 2020.OTIS AND CLIMATE, CONTROLS & SECURITY BUSINESSES TO BECOME INDEPENDENT COMPANIES.FOLLOWING SEPARATION, UTC TO OPERATE AS A AEROSPACE COMPANY COMPRISED OF COLLINS AEROSPACE SYSTEMS AND PRATT & WHITNEY BUSINESSES.CCS WILL BE RENAMED CARRIER.GREGORY HAYES WILL OVERSEE TRANSITION AND WILL CONTINUE IN HIS CURRENT ROLE AS UTC CHAIRMAN AND CEO FOLLOWING SEPARATION.UNTIL PLANNED TRANSACTIONS ARE COMPLETED, UTC EXPECTS TO CONTINUE TO PAY A QUARTERLY DIVIDEND OF NO LESS THAN 73.5 CENTS/SHARE..THREE COMPANIES TOGETHER ARE INITIALLY EXPECTED TO PAY A QUARTERLY DIVIDEND THAT IS IN SUM NO LESS THAN 73.5 CENTS PER SHARE.ONE-TIME TRANSACTION COSTS ARE EXPECTED TO INCLUDE NON-U.S. TAX EXPENSE, DEBT FINANCING, OPERATIONAL SEPARATION ACTIVITIES.SEES 2018 SALES OF $64.5 BILLION TO $65.0 BILLION, UP FROM $64.0 BILLION TO $64.5 BILLION.SEPARATIONS IS EXPECTED TO BE COMPLETED IN 2020, WITH SEPARATION ACTIVITIES OCCURRING WITHIN NEXT 18-24 MONTHS.UTC ALSO EXPECTS $500 TO $750 MILLION OF ACCRETION TO FREE CASH FLOW IN 2019 FROM ROCKWELL COLLINS.THERE IS NO CHANGE IN COMPANY'S PREVIOUSLY PROVIDED 2018 EXPECTATIONS FOR ORGANIC SALES GROWTH OF APPROXIMATELY 6 PERCENT.SEES 2018 ADJUSTED EPS OF $7.10 TO $7.20.