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United Technologies Management Discusses Q2 2012 Results - Earnings Call Transcript

Stocks in this article: UTX

[Operator Instructions] Please go ahead, Mr. Chenevert.

Louis R. Chenevert

Well, thank you very much, Stephanie, and good morning, everyone. I'm pleased to be part of the call on this historic moment for our company. We've had a full week with many exciting developments. Greg will take you through the quarter results in just a moment. But first, let me start with an update on our major acquisitions and on our business transformation strategy.

Late last month, we closed on the IAE transaction and this morning we received the final regulatory approvals for the Goodrich acquisition. We anticipate closing later today or early tomorrow morning. These are transformational deals for UTC, setting the stage for strong earnings momentum. IAE brings tremendous aftermarket runway with the V2500, which now represents Pratt & Whitney's largest install fleet. There are over 4,500 V2500 engines in service with an average age of only 7 years, and we expect to deliver another 3,000 engines in the future. The IAE transaction further validates our game-changing GTF technology and strengthens our relationship with nearly 200 airline customers around the world, ensuring a seamless transition from the V2500 to the GTF-powered A320neo.

Turning to Goodrich. I'm very pleased we will close such a large transaction in just 10 months with limited required divestitures. Goodrich adds a very strong portfolio of complementary products and is a great fit with Hamilton Sundstrand. Bringing these 2 companies together will significantly strengthen our position in the growing aerospace segment and will allow us to develop more integrated systems for our customers and win greater content our next-generation aircraft. Since announcing the agreement, we have done significant integration planning. So we are ready to begin integrating Goodrich into our Propulsion and Aerospace systems organization. A team of more than 50 employees has worked relatively on integration planning with hundreds of employees lending additional support. The leadership team is in place and our extensive planning activities will make for a smooth transition for our customers, suppliers and employees.

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