United Technologies Corporation provides high-technology products and services for the aerospace and commercial building industries worldwide. In 2014, UTC net sales were $65.1 billion.
UTC's portfolio is balanced across customer segments, markets and geographies.
At UTC, sustainability means profitable, responsible operations that do not compromise the environmental or economic health of future generations. Twenty years ago, we were among the first companies to set sustainability targets, and we continue to improve our environmental performance — steadily reducing greenhouse gas and chemical emissions, energy and water consumption, and industrial waste in our operations and supply chain.
We apply the same disciplined approach to product development, designing energy-efficient products while minimizing the amount of material used to make them and their environmental impact.
A leading voice in promoting sustainable building design, we are the only company in the world to be a founding member of Green Building Councils on four continents. In 2014, our Carrier business convened its inaugural World Cold Chain Summit to Reduce Food Waste, bringing together experts to develop strategies for decreasing the estimated one-third of the world's food that goes to waste each year.
At UTC, responsible operations begin with protecting and promoting the health and well-being of our employees. We continue to invest in the tools, processes and training necessary to allow employees to do their jobs safely and to promote a healthy work environment.
Across the company, we continue to look for ways to improve our products, our environment and our world.
Key Performance Indicators measure UTC's sustainability performance for current operations.
The increases in our 2013 environmental performance results reflect the addition of 100 former Goodrich sites to our EH&S management system.
UTC reporting standards include the ongoing analysis and correction of data, as applicable, following the close of a reporting period. Consequently, previously reported annual metric results may change between annual reporting periods, and UTC may include any prior-year data revisions in current reporting.
Learn more about our progress in protecting the environment and the health and safety of our employees at www.utc.com/Corporate-Responsibility.
UTC BUILDING & INDUSTRIAL SYSTEMS, the world's largest provider of building technologies, makes modern life possible with products that promote intelligent, sustainable buildings: elevators and escalators; fire-safety and security systems; building automation technology; and heating, ventilating, air-conditioning and refrigeration systems and services.
The organization, which combines Otis and UTC Climate, Controls & Security, enables UTC to build on existing customer relationships and offer more integrated solutions to win a larger share of major projects. In Hong Kong, the iconic iSQUARE shopping complex, already equipped with Otis elevators, Carrier chillers and Chubb security solutions, chose UTC Building & Industrial Systems to provide intelligent systems, including video analytics, remote monitoring and energy management systems.
In the Middle East, the new Midfield Terminal Complex of Abu Dhabi International Airport, one of the world's largest airport construction projects, will be equipped with Carrier chillers and Otis elevators and escalators.
St. Patrick's Cathedral in New York City chose Marioff's HI-FOG system, which suppresses fire with significantly less water than traditional sprinkler systems, reducing water damage, cleanup time and operational downtime.
The business maintained the momentum of UTC Climate, Controls & Security, which has grown earnings over the last four years while increasing margins from 9.9 percent in 2010 to 16.5 percent in 2014.
It also continued progress on improving the growth trajectory of Otis, where equipment orders have risen 22 percent over the last two years, including 7 percent in 2014 on a constant currency basis.
Otis won the largest new equipment contract in its history in 2014, to supply and install 411 escalators and 167 Gen2 elevators for a mass transit project in Singapore. It will also supply 107 high-rise elevators and escalators for the Abu Dhabi Plaza in Kazakhstan, which at 1,050 feet will be the tallest building in central Asia when completed in 2017.
In early 2015, Otis won the contract to provide 73 elevators and escalators for 30 Hudson Yards, a 92-story office tower that will be among the first buildings constructed as part of Hudson Yards on Manhattan's West Side — the largest development in New York City since construction of Rockefeller Center in the 1930s.
Innovation remains core to our mission. As an example of our smart technologies, Lenel's OnGuard security platform can now be integrated with the Otis CompassPlus building destination management system, Edwards life safety systems and Interlogix TruVision video recorders. This offers customers enhanced elevator dispatching, added safety and security capabilities, and a centralized platform for building management.
Carrier Transicold's new line of Citifresh truck refrigeration units are designed to meet the challenges of transporting fresh food long distances in India, where an estimated $2 billion worth of fruits and vegetables go to waste each year because of a lack of an integrated cold chain. Carrier introduced the expanded-capacity AquaEdge water-cooled chiller, designed to meet the high-efficiency cooling needs of large-scale projects in today's fast-growing cities.
Otis and UTC Climate, Controls & Security (CCS) report their financial and operational results as separate segments:
|EMPLOYEES1||NET SALES2||OPERATING PROFIT3|
|Otis||64,741||$13.0 billion||$2.6 billion|
|CCS||53,628||$16.8 billion||$2.8 billion|
PRATT & WHITNEY celebrated numerous wins and milestones with customers around the world in 2014, validating our past investments and demonstrating our technology leadership.
In France, the Airbus A320neo made its maiden flight powered by Pratt & Whitney's PurePower PW1100G-JM engines, which also received Federal Aviation Administration type certification in 2014 — marking a key milestone in the development program and positioning the engine to enter service well ahead of the competition. Pratt & Whitney also delivered its first PurePower PW1200G engines to Mitsubishi Aircraft for the MRJ regional jet, Japan's first new commercial jet in 50 years.
Gulfstream Aerospace announced the selection of Pratt & Whitney Canada's PurePower PW800 engine to exclusively power its new G500 and G600 family of business jets. The PW800 engine is optimized for long-range business jets and shares the same proven core technology used in Pratt & Whitney's Geared Turbofan commercial engines. AVIC Xi'an Aircraft Industry Company, China, selected Pratt & Whitney Canada's PW150C turboprop engine to power its new MA700 regional turboprop aircraft.
In the Military Engines business, the F-35B Lightning II fighter, powered by the company's F135 engine, is on track to be declared combat ready in 2015. By the end of 2014, the F135 engine had completed more than 26,000 ground test hours and 21,500 flight hours, proving its durability and performing flawlessly in sea trials conducted by the U.S. Navy. In Brazil, Embraer rolled out its KC-390 military transport, powered by V2500-E5 engines. The V2500 is the most technologically advanced engine in its class, with 5,350 in service today.
As it prepares to double engine production over the next five years, Pratt & Whitney is investing in smart manufacturing technologies and expanding capacity at facilities around the world. In 2014, it celebrated the grand opening of its new 97,000-square-foot, state-of-the-art engine center in West Palm Beach, Florida.
In its aftermarket business, Pratt & Whitney continues its move to Fleet Management Programs, which benefit customers by improving reliability and keeping engines on wing longer.
UTC AEROSPACE SYSTEMS, celebrating its second anniversary, continued building momentum as the world's leading supplier of integrated aerospace solutions. Every second, a commercial flight takes off equipped with our systems, designed to make aircraft safer, lighter, more reliable and more efficient. UTC Aerospace Systems anticipates that current programs offer the potential for future sales of more than $200 billion over the life of those programs.
The company designed and built systems that supported numerous industry milestones, including the entry into service of the Boeing 787-9 Dreamliner; first flight of the Airbus A320neo; and rollout of the Mitsubishi MRJ regional jet, the Gulfstream G500 and G600 business jets, and the Embraer KC-390 military transport. Technology from UTC Aerospace Systems was integral to the fly-by-wire control systems used to enhance flight handling and reduce pilot workload on two high-performance military aircraft rolled out by Sikorsky: the S-97 RAIDER armed reconnaissance helicopter and the CH-53K King Stallion heavy-lift helicopter.
UTC Aerospace Systems also won significant content on new platforms, including the Boeing 777X, 787-10 and 737 MAX; the second generation of the Embraer E-Jet aircraft family; and the AVIC MA700 regional turboprop aircraft. In the aftermarket, the business signed long-term agreements with premier customers, including All Nippon Airways, China Airlines and JetBlue Airways.
UTC Aerospace Systems also expanded its global footprint to be closer to customers and increase operational efficiency. New locations included a Global Engineering Center in Wrocław, Poland, and a facility in Toulouse, France, to support thrust reverser production for the Airbus A350 XWB. In China, the UTC Aerospace Systems joint venture with AVIC EM began operations to develop and manufacture the electric power system for the new C919 jetliner, built by the Commercial Aircraft Corporation of China.
SIKORSKY, whose name has been synonymous with helicopters for nearly 80 years, today remains an industry leader through its commitment to innovation, excellence and safety, serving commercial and military markets worldwide.
In 2014, Sikorsky secured every strategic competition it entered — a string of wins that contributed to a record backlog and sets the stage for long-term organic growth.
The company won contracts to develop the next fleet of Marine One helicopters for the U.S. president and combat rescue helicopters for the U.S. Air Force. The U.S. Army also selected the Sikorsky-Boeing SB>1 Defiant demonstrator, a medium-lift helicopter configured to Sikorsky's X2 coaxial design, as one of two finalists in the Joint Multi-Role Technology Demonstrator program to compete for a future next-generation vertical-lift aircraft program.
Sikorsky continued its momentum in international markets. It signed agreements with the Turkish government and key aerospace companies there to license production of 109 helicopters — the Turkish variant of the S-70i BLACK HAWK helicopter. India's Navy selected the S-70B SEAHAWK for its multi-role helicopter needs, representing a major strategic win in an important growth market.
Sikorsky rolled out two new advanced military helicopters — the CH-53K heavy-lift helicopter for the U.S. Marine Corps and the X2-based S-97 RAIDER armed reconnaissance helicopter, both scheduled to begin flight tests in 2015. These two programs will set new standards for helicopter performance and represent the future of vertical flight.
On the commercial side, the company delivered a record number of its best-selling S-92 helicopters, with the global fleet growing to 220 aircraft and accruing nearly 769,000 flight hours since its introduction. The new S-76D helicopter has quickly spread to markets around the world, including the United States, China, Japan and South Africa. The Yunnan Jingcheng Group took delivery of China's first S-76D helicopter, configured for transportation of corporate and government VIPs. Sikorsky also delivered the first search-and-rescue variant of the S-76D to the Japanese Coast Guard. The worldwide legacy S-76 fleet has now flown more than 6.6 million hours.