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Through $21.6 in deal making, United Technologies has moved from being diversified to ultra-diversified. In September, United Technologies did its biggest ever merger buying plane landing gear and aerospace equipment maker
Goodrich(GR) for $18.4 billion to bolster its Hamilton Sundstrand engines divisions.
Through deals in recent years, the company is trying to diversify its businesses that already contains Carrier air conditioners, Otis elevators and UTC Power, and a specialty in aerospace with Hamilton Sundstrand airplane systems, Pratt & Whitney aircraft engines and Sikorsky helicopters.
Overall, deal like the Goodrich purchase and a buyout of a joint venture with
Rolls Royce are bolstering United Technologies' commercial aircraft sales. With Goodrich and its Rolls Royce partnership added, United Technologies' Pratt & Whitney plane engines division may soon become its largest revenue source, while its Hamilton Sundstrand aerospace division may become company's fourth largest division, leapfrogging UTX Fire & Safety and Sikorsky.
After a steep fall in the crisis, United Technologies' stock reached all-time highs above $90 a share this July as profits accelerated. A recent surge in both
Boeing(BA - Get Report) and
Airbus plane orders prove that commercial airlines are looking to upgrade their fleets, signaling that United Technologies is positioning itself well.