UTC Reports Fourth Quarter And Full Year EPS Of $1.04 And $5.35; Reaffirms 2013 EPS Outlook Of $5.85 To $6.15

  UTC Reports Fourth Quarter And Full Year EPS Of $1.04 And $5.35; Reaffirms
                      2013 EPS Outlook Of $5.85 To $6.15

PR Newswire

HARTFORD, Conn., Jan. 23, 2013

HARTFORD, Conn., Jan. 23, 2013 /PRNewswire/ --United Technologies Corp.
(NYSE: UTX) today reported full year 2012 earnings per share of $5.35 and net
income attributable to common shareowners of $4.8 billion, both essentially
flat versus prior year. The acquisition of Goodrich Corporation was $0.06
dilutive to EPS. Sales of $57.7 billion were 4 percent above prior year
including net acquisitions (6 points) and adverse foreign currency translation
(2 points). For the year, organic sales were flat and segment operating margin
was 14.0 percent. Adjusted for restructuring and one-time items, segment
operating margin of 14.8 percent was 60 basis points lower than prior year,
including dilution from the acquisition of Goodrich Corporation. Cash flow
from operations of $6.6 billion, less capital expenditures of $1.4 billion,
exceeded net income attributable to common shareowners.

"2012 was a transformational year for United Technologies with the successful
completion of the Goodrich and IAE transactions, and the divestiture of
several non-core assets," said Louis Chenevert, UTC Chairman & Chief Executive
Officer. "We reshaped our portfolio to focus on our core markets. We also
invested $2.4 billion in developing game changing technologies and nearly $600
million on restructuring our operations to address a challenging economic
environment." 

Fourth quarter 2012 earnings per share of $1.04 were down 27 percent from the
year ago quarter. Results for the quarter included $0.25 per share of
restructuring and one-time charges. The prior year quarter included $0.01 of
net favorable one-time items in excess of restructuring charges. Before these
items, earnings per share decreased $0.12 or 9 percent year over year. In
addition, results included a $0.12 charge recorded at Sikorsky related to the
Canadian Maritime Helicopter program. Foreign currency translation and hedges
at Pratt & Whitney Canada had an adverse impact of $0.02 in the quarter.

Sales of $16.4 billion for the quarter were 14 percent above prior year. Net
acquisitions provided 15 points of growth. Organic sales were flat and foreign
currency translation had an adverse impact of 1 point. Fourth quarter segment
operating margin was 11.4 percent. Adjusted for restructuring costs and net
one-time items, segment operating margin of 13.3 percent was 200 basis points
lower than prior year, primarily due to the impact of the acquisition of
Goodrich Corporation and the Canadian Maritime Helicopter program charge at
Sikorsky. Cash flow from operations of $2.0 billion less capital expenditures
of $641 million exceeded net income attributable to common shareowners of $945
million.

"We closed the year better than we had anticipated," said Chenevert. "Cash
generation was strong both in the quarter and for the full year, and we
delivered on our commitment to pay down approximately one-third of the
Goodrich acquisition debt."

New equipment orders at Otis were up 12 percent over the year ago fourth
quarter including adverse foreign exchange of 1 point, driven by strong order
growth in China. North American Residential HVAC new equipment orders at UTC
Climate, Controls & Security grew 20 percent. Large commercial engine spares
orders were up 46 percent at Pratt & Whitney including the impact from the
incremental International Aero Engines share. Organically, commercial spares
orders were down 8 percent at Pratt & Whitney and down 4 percent at UTC
Aerospace Systems.

"With broad based improvement in our order trends, and a continued focus on
integration and execution, we remain confident in our ability to deliver 2013
earnings per share of $5.85 to $6.15," Chenevert added. "We continue to expect
sales between $64 and $65 billion and cash flow from operations less capital
expenditures to equal or exceed net income attributable to common shareowners
in 2013."

United Technologies Corp., based in Hartford, Connecticut, is a diversified
company providing high technology products and services to the building and
aerospace industries. Additional information, including a webcast, is
available on the Internet at http://www.utc.com.

All financial results and projections reflect continuing operations unless
otherwise noted. The accompanying tables include information integral to
assessing the company's financial position, operating performance, and cash
flow, including a reconciliation of differences between non-GAAP measures used
in this release and the comparable financial measures calculated in accordance
with generally accepted accounting principles in the United States.

This release includes statements that constitute "forward-looking statements"
under the securities laws. Forward-looking statements often contain words such
as "believe," "expect," "plans," "strategy," "prospects," "estimate,"
"project," "target," "anticipate," "will," "should," "see," "guidance,"
"confident" and similar terms. Forward-looking statements may include, among
other things, statements relating to future and estimated sales, earnings,
cash flow, financing plans, charges, expenditures, anticipated benefits of
acquisitions and divestitures, results of operations, uses of cash and other
measures of financial performance. All forward-looking statements involve
risks, uncertainties and assumptions that may cause actual results to differ
materially from those expressed or implied in the forward-looking statements.
Risks and uncertainties include, without limitation, the effect of economic
conditions in the markets in which we operate, including financial market
conditions, fluctuation in commodity prices, interest rates and foreign
currency exchange rates; future levels of indebtedness and capital and
research and development spending; levels of end market demand in construction
and in the aerospace industry; levels of air travel; financial difficulties of
commercial airlines; the impact of weather conditions and natural disasters;
the financial condition of our customers and suppliers; delays and disruption
in delivery of materials and services from suppliers; cost reduction efforts
and restructuring costs and savings and other consequences thereof; the scope,
nature, timing or impact of acquisitions, dispositions, joint ventures and
other business arrangements, including integration of acquired businesses; the
timing and amount of gains, losses, impairments and charges related to
anticipated dispositions; the timing and impact of anticipated debt reduction
following the Goodrich acquisition; the development and production of new
products and services; the anticipated benefits of diversification and balance
of operations across product lines, regions and industries; the impact of the
negotiation of collective bargaining agreements and labor disputes; the
outcome of legal proceedings and other contingencies; future availability of
credit; pension plan assumptions and future contributions; and the effect of
changes in tax, environmental and other laws and regulations and political
conditions in countries in which we operate and other factors beyond our
control. The completion of the proposed divestitures of businesses is subject
to uncertainties, including the ability to secure disposition agreements and
regulatory approvals on acceptable terms; and satisfaction of other customary
conditions. These forward-looking statements speak only as of the date of this
release and we undertake no obligation to update or revise any forward-looking
statements after we distribute this release. For additional information
identifying factors that may cause actual results to vary materially from
those stated in the forward-looking statements, see our reports on Forms 10-K,
10-Q and 8-K filed with the SEC from time to time, including, but not limited
to, the information included in UTC's Forms 10-K and 10-Q under the headings
"Business," "Risk Factors," "Management's Discussion and Analysis of Financial
Condition and Results of Operations" and "Legal Proceedings" and in the notes
to the financial statements included in UTC's Forms 10-K and 10-Q.

UTC-IR





United Technologies Corporation

Condensed Consolidated Statement of Comprehensive Income


                                        Quarter Ended       Year Ended
                                         December 31,     December 31,
                                        (Unaudited)         (Unaudited)
(Millions, except per share amounts)    2012      2011      2012      2011
Net sales                               $ 16,443  $ 14,377  $ 57,708  $ 55,754
Costs and Expenses:
 Cost of products and services sold       12,286    10,411    42,153    40,369
 Research and development                 712       524       2,371     1,951
 Selling, general and administrative      1,795     1,623     6,452     6,161
  Total Costs and Expenses         14,793    12,558    50,976    48,481
Other income, net                         101       26        952       573
Operating profit                          1,751     1,845     7,684     7,846
 Interest expense, net                    260       67        773       496
Income from continuing operations         1,491     1,778     6,911     7,350
before income taxes
 Income tax expense                       454       403       1,711     2,134
Income from continuing operations         1,037     1,375     5,200     5,216
Discontinued operations:
 Income from operations                   53        54        171       255
 Gain on disposal                         2,058     -         861       -
 Income tax expense                       (998)     (7)       (742)     (97)
Net income from discontinued              1,113     47        290       158
operations
Net income                                2,150     1,422     5,490     5,374
 Less: Noncontrolling interest in         93        97        360       395
 subsidiaries' earnings
Net income attributable to common       $ 2,057   $ 1,325   $ 5,130   $ 4,979
shareowners
Comprehensive income (loss)             $ 1,369   $ (318)   $ 5,540   $ 3,650
 Less: Comprehensive income
 attributable to
  noncontrolling interests              97        81        368       392
Comprehensive income (loss)
attributable to
  common shareowners                  $ 1,272   $ (399)   $ 5,172   $ 3,258
Net income attributable to common
shareowners:
 From continuing operations             $ 945     $ 1,280   $ 4,847   $ 4,831
 From discontinued operations             1,112     45        283       148
Earnings Per Share of Common Stock -
Basic:
 From continuing operations             $ 1.05    $ 1.44    $ 5.41    $ 5.41
 From discontinued operations             1.24      0.05      0.32      0.17
Earnings Per Share of Common Stock -
Diluted:
 From continuing operations             $ 1.04    $ 1.42    $ 5.35    $ 5.33
 From discontinued operations             1.22      0.05      0.31      0.16

As described on the following pages, consolidated results for the quarters and
years ended December 31, 2012 and 2011 include restructuring costs and
non-recurring items that management believes should be considered when
evaluating the underlying financial performance.

See accompanying Notes to Condensed Consolidated Financial Statements.



United Technologies Corporation

Segment Net Sales and Operating Profit


                                  Quarter Ended       Year Ended
                                  December 31,
                                                      December 31,
                                  (Unaudited)         (Unaudited)
(Millions)                        2012      2011      2012      2011
Net Sales
Otis                              $ 3,205   $ 3,211   $ 12,056  $ 12,437
UTC Climate, Controls & Security    4,147     4,410     17,090    18,864
Pratt & Whitney                     3,891     3,481     13,964    12,711
UTC Aerospace Systems               3,174     1,264     8,334     4,760
Sikorsky                            2,176     2,110     6,791     7,355
Segment Sales                       16,593    14,476    58,235    56,127
Eliminations and other              (150)     (99)      (527)     (373)
Consolidated Net Sales            $ 16,443  $ 14,377  $ 57,708  $ 55,754
Operating Profit
Otis                              $ 644     $ 711     $ 2,512   $ 2,815
UTC Climate, Controls & Security    460       461       2,425     2,212
Pratt & Whitney                     364       519       1,589     1,867
UTC Aerospace Systems               264       198       944       759
Sikorsky                            160       207       712       840
Segment Operating Profit            1,892     2,096     8,182     8,493
Eliminations and other              (18)      (127)     (72)      (228)
General corporate expenses          (123)     (124)     (426)     (419)
Consolidated Operating Profit     $ 1,751   $ 1,845   $ 7,684   $ 7,846
Segment Operating Profit Margin
Otis                                20.1%     22.1%     20.8%     22.6%
UTC Climate, Controls & Security    11.1%     10.5%     14.2%     11.7%
Pratt & Whitney                     9.4%      14.9%     11.4%     14.7%
UTC Aerospace Systems               8.3%      15.7%     11.3%     15.9%
Sikorsky                            7.4%      9.8%      10.5%     11.4%
Segment Operating Profit Margin     11.4%     14.5%     14.0%     15.1%

As described on the following pages, consolidated results for the quarters and
years ended December 31, 2012 and 2011 include restructuring costs and
non-recurring items that management believes should be considered when
evaluating the underlying financial performance.



United Technologies Corporation

Restructuring Costs and Non-Recurring Items Included in Results of Continuing
Operations


                                         Quarter Ended      Year Ended
                                         December 31,       December 31,
                                         (Unaudited)        (Unaudited)
In Millions - Income (Expense)           2012     2011     2012      2011
Restructuring Costs included in Operating Profit:
Otis                                     $ (59)    $ (26)   $ (164)   $ (73)
UTC Climate, Controls & Security           (45)     (61)     (143)     (126)
Pratt & Whitney                            (39)     (18)     (96)      (52)
UTC Aerospace Systems                      (75)     (6)      (115)     (11)
Sikorsky                                   (35)     (37)     (53)      (53)
Eliminations and other^                   (5)      -        (19)      -
                                           (258)    (148)    (590)     (315)
Non-Recurring Gains (Losses) included in Operating Profit:
UTC Climate, Controls & Security           (65)     35       157       43
Pratt & Whitney                            -       -        -         41
Sikorsky                                   -       -        -         73
Eliminations and other                     -       (45)     24        (45)
                                           (65)     (10)     181       112
 Total impact on Consolidated Operating    (323)    (158)    (409)     (203)
 Profit
Non-Recurring items included in Interest   -         89       40        89
 Expense, Net
 Tax effect of restructuring and
 non-recurring
  items above                         92      17       122       15
Non-Recurring items included in Income
 Tax Expense                               -       63       237       80
 Impact on Net Income from Continuing
 Operations Attributable to Common       $ (231)   $ 11     $ (10)    $ (19)
 Shareowners
 Impact on Diluted Earnings Per Share    $ (0.25)  $ 0.01   $ (0.01)  $ (0.02)
 from Continuing Operations

Details of the non-recurring items for the quarters and years ended December
31, 2012 and 2011 above are as follows:

Quarter Ended December 31, 2012

UTC Climate, Controls & Security: Approximately $65 million net charge from
UTC Climate, Controls & Security's ongoing portfolio transformation. This net
charge includes approximately $24 million of pension settlement charges
related to the sale of a controlling interest in its Canadian distribution
business and $39 million of impairment charges related to the planned
disposition of certain fire and security businesses.

Discontinued Operations: Approximately $2,103 million gain ($1,050 million
net of tax) on the sale of the legacy Hamilton Sundstrand's Industrial
businesses.

Quarter Ended September 30, 2012

Eliminations and other: Approximately $34 million non-cash gain recognized on
the remeasurement to fair value of our previously held shares of Goodrich
Corporation stock resulting from our acquisition of the company.

Interest Expense, Net: Approximately $25 million of favorable pre-tax
interest adjustments related to the resolution of disputes with the Appeals
Division of the IRS for the Company's 2004 - 2005 tax years.

Income Tax Expense: Approximately $34 million of favorable income tax
adjustments related to the resolution of disputes with the Appeals Division of
the IRS for the Company's 2004 - 2005 tax years.

Discontinued Operations: Approximately $127 million of favorable income tax
adjustments related to the reversal of a portion of the deferred tax liability
initially recorded during the quarter ended March 31, 2012 on the existing
difference between the expected accounting versus tax gain on the planned
disposition of legacy Hamilton Sundstrand's Industrial businesses. As a result
of the structure of the transaction that was finalized in July 2012, a portion
of the deferred tax liability cannot be recorded until the sale is finalized.

Quarter Ended June 30, 2012

UTC Climate, Controls & Security: Approximately $110 million net gain from
UTC Climate, Controls & Security's ongoing portfolio transformation. This net
gain includes approximately $142 million from the sale of a controlling
interest in its Canadian distribution business, partially offset by a $32
million loss on the disposition of its U.S. fire and security branch
operations.

Discontinued Operations:

  oApproximately $179 million pre-tax impairment charge related to inventory,
    fixed assets and goodwill, as a result of the decision to dispose of the
    UTC Power business.
  oApproximately $91 million reserve for potential remediation costs
    associated with certain components of wind turbines previously installed
    by our Clipper business.

Quarter Ended March 31, 2012

UTC Climate, Controls & Security: Approximately $112 million net gain from
UTC Climate, Controls & Security's ongoing portfolio transformation. This net
gain includes approximately $215 million from the sale of a controlling
interest in a manufacturing and distribution joint venture in Asia, partially
offset by $103 million of impairment charges related to planned business
dispositions.

Eliminations and other: An additional $10 million of reserves were
established for the export licensing compliance matters recorded in the fourth
quarter 2011.

Interest Expense, Net: Approximately $15 million of favorable pre-tax
interest adjustments related to the conclusion of the IRS's examination of the
Company's 2006 – 2008 tax years.

Income Tax Expense: Approximately $203 million of favorable income tax
adjustments related to the conclusion of the IRS's examination of the
Company's 2006 – 2008 tax years.

Discontinued Operations:

  oApproximately $360 million and $590 million of pre-tax goodwill impairment
    charges ($220 million and $410 million after tax) related to Rocketdyne
    and Clipper, respectively.
  oApproximately $235 million of unfavorable income tax adjustments related
    to the recognition of a deferred tax liability on the existing difference
    between the expected accounting versus tax gain on the planned disposition
    of legacy Hamilton Sundstrand's Industrial businesses.

Quarter Ended December 31, 2011

UTC Climate, Controls & Security:

  oApproximately $81 million net gain resulting from Carrier's ongoing
    portfolio transformation primarily as a result of the contribution of
    Carrier's heating, air-conditioning, and ventilation operations in Brazil,
    Argentina, and Chile into a new venture controlled by Midea Group of
    China.
  oApproximately $46 million other-than-temporary impairment charge on an
    equity investment.

Eliminations and other: Approximately $45 million of reserves were
established for legal matters.

Interest Expense, Net: Approximately $89 million of favorable pre-tax interest
adjustments related to the settlement of U.S. federal income tax refund claims
for years prior to 2004.

Income Tax Expense: Approximately $63 million of favorable income tax
adjustments related to the settlement of U.S. federal income tax refund claims
for years prior to 2004.

Quarter Ended September 30, 2011

UTC Climate, Controls & Security:

  oApproximately $28 million net gain resulting from dispositions associated
    with UTC Climate, Controls & Security's ongoing portfolio transformation.
  oApproximately $20 million other-than-temporary impairment charge on an
    equity investment.

Pratt & Whitney: Approximately $41 million gain recognized from the sale of
an equity investment.

Income Tax Expense: Favorable tax benefit of approximately $17 million as a
result of a U.K. tax rate reduction enacted in July 2011.

Quarter Ended June 30, 2011

Sikorsky: Approximately $73 million gain recognized from the contribution of
a business into a new venture in the United Arab Emirates.

The following page provides segment net sales, operating profits and operating
profit margins as adjusted for the aforementioned restructuring costs and
non-recurring items. Management believes these adjusted results more
accurately portray the ongoing operational performance and fundamentals of the
underlying businesses. The amount and timing of restructuring costs and
non-recurring activity can vary substantially from period to period with no
assurances of comparable activity or amounts being incurred in future
periods. These amounts have therefore been adjusted out in the following
schedule in order to provide a more representative comparison of current year
operating performance to prior year performance.



United Technologies Corporation

Segment Net Sales and Operating Profit Adjusted for Restructuring Costs and
Non-Recurring Items (as reflected on the previous pages)


                          Quarter Ended                Year Ended

                          December 31,                 December 31,
                          (Unaudited)                  (Unaudited)
(Millions)                2012            2011         2012         2011
Net Sales
Otis                      $   3,205       $  3,211     $  12,056    $  12,437
UTC Climate, Controls         4,147          4,410        17,090       18,864
& Security
Pratt & Whitney               3,891          3,481        13,964       12,711
UTC Aerospace Systems         3,174          1,264        8,334        4,760
Sikorsky                      2,176          2,110        6,791        7,355
Segment Sales                 16,593         14,476       58,235       56,127
Eliminations and other        (150)          (99)         (527)        (373)
Consolidated Net Sales    $   16,443      $  14,377    $  57,708    $  55,754
Adjusted Operating
Profit
Otis                      $   703         $  737       $  2,676     $  2,888
UTC Climate, Controls         570            487          2,411        2,295
& Security
Pratt & Whitney               403            537          1,685        1,878
UTC Aerospace Systems         339            204          1,059        770
Sikorsky                      195            244          765          820
Adjusted Segment              2,210          2,209        8,596        8,651
Operating Profit
Eliminations and other        (13)           (82)         (77)         (183)
General corporate             (123)          (124)        (426)        (419)
expenses
Adjusted Consolidated     $   2,074       $  2,003     $  8,093     $  8,049
Operating Profit
Adjusted Segment
Operating Profit
Margin
Otis                          21.9%          23.0%        22.2%        23.2%
UTC Climate, Controls         13.7%          11.0%        14.1%        12.2%
& Security
Pratt & Whitney               10.4%          15.4%        12.1%        14.8%
UTC Aerospace Systems         10.7%          16.1%        12.7%        16.2%
Sikorsky                      9.0%           11.6%        11.3%        11.1%
Adjusted Segment
Operating Profit              13.3%          15.3%        14.8%        15.4%
Margin





United Technologies Corporation

Condensed Consolidated Balance Sheet


                                            December 31,  December 31,
                                            2012          2011
(Millions)                                  (Unaudited)   (Unaudited)
Assets
Cash and cash equivalents                   $  4,819      $  5,960
Accounts receivable, net                       11,099        9,546
Inventories and contracts in progress, net     9,537         7,797
Assets held for sale                           1,071         -
Other assets, current                          3,084         2,455
         Total Current Assets                  29,610        25,758
Fixed assets, net                              8,518         6,201
Goodwill                                       27,801        17,943
Intangible assets, net                         15,189        3,918
Other assets                                   8,291         7,632
Total Assets                                $  89,409     $  61,452
Liabilities and Equity
Short-term debt                             $  1,624      $  759
Accounts payable                               6,431         5,570
Accrued liabilities                            15,310        12,287
Liabilities held for sale                      421           -
         Total Current Liabilities             23,786        18,616
Long-term debt                                 21,597        9,501
Other long-term liabilities                    16,719        10,157
         Total Liabilities                     62,102        38,274
Redeemable noncontrolling interest             238           358
Shareowners' Equity:
Common Stock                                   13,837        13,293
Treasury Stock                                 (19,251)      (19,410)
Retained earnings                              36,776        33,487
Accumulated other comprehensive loss           (5,448)       (5,490)
         Total Shareowners' Equity             25,914        21,880
Noncontrolling interest                        1,155         940
         Total Equity                          27,069        22,820
Total Liabilities and Equity                $  89,409     $  61,452
Debt Ratios:
Debt to total capitalization                   46%           31%
Net debt to net capitalization                 40%           16%
See accompanying Notes to Condensed Consolidated Financial Statements.





United Technologies Corporation

Condensed Consolidated Statement of Cash Flows


                                   Quarter Ended         Year Ended

                                   December 31,          December 31,
                                   (Unaudited)           (Unaudited)
(Millions)                         2012       2011       2012        2011
Operating Activities of
Continuing Operations:
  Income from continuing           $ 1,037    $ 1,375    $ 5,200     $ 5,216
  operations
  Adjustments to reconcile net
  income from continuing

   operations to net cash flows
  provided by operating

   activities of continuing
  operations:
     Depreciation and                477        301        1,524       1,263
     amortization
     Deferred income tax             91         (3)        120         334
     provision (benefit)
     Stock compensation cost         60         42         210         221
     Change in working capital       252        261        103         (291)
  Global pension contributions *    (197)      (305)      (430)       (551)
  Other operating activities, net    234        239        (122)       268
     Net cash flows provided by
     operating activities            1,954      1,910      6,605       6,460
     of continuing operations
Investing Activities of
Continuing Operations:
  Capital expenditures               (641)      (359)      (1,389)     (929)
  Acquisitions and dispositions      45         (16)       (15,601)    137
  of businesses, net
  Increase in collaboration          (149)      -          (1,543)     -
  intangible assets
  Other investing activities, net    (55)       (9)        (262)       120
     Net cash flows used in
     investing activities of         (800)      (384)      (18,795)    (672)
     continuing
     operations
Financing Activities of
Continuing Operations:
  (Repayment) issuance of            (741)      (507)      10,057      (557)
  long-term debt, net
  (Decrease) increase in             (4,723)    (568)      (214)       562
  short-term borrowings, net
  Dividends paid on Common Stock     (464)      (410)      (1,752)     (1,602)
  Repurchase of Common Stock         -          -          -           (2,175)
  Other financing activities, net    (37)       (108)      (70)        (211)
     Net cash flows (used in)
     provided by financing           (5,965)    (1,593)    8,021       (3,983)
     activities
      of continuing operations
Discontinued Operations:
  Net cash provided by operating     19         102        41          130
  activities
  Net cash provided by (used in)     3,326      (25)       2,974       (35)
  investing activities
  Net cash used in financing         -          (2)        -           (22)
  activities
     Net cash flows provided by      3,345      75         3,015       73
     discontinued operations
Effect of foreign exchange rate
changes on cash and                  5          (14)       30          (1)

 cash equivalents
     Net (decrease) increase in      (1,461)    (6)        (1,124)     1,877
     cash and cash equivalents
Cash and cash equivalents,           6,297      5,966      5,960       4,083
beginning of period
Cash and cash equivalents, end of    4,836      5,960      4,836       5,960
period
  Less: Cash and cash equivalents
                                     (17)       -          (17)        -
   of assets held for sale
Cash and cash equivalents of
continuing                         $ 4,819    $ 5,960    $ 4,819     $ 5,960

 operations, end of period
* Non-cash activities include contributions of UTC common stock to domestic
defined benefit pension plans of

 $450 million during the third quarter of 2011.
See accompanying Notes to Condensed Consolidated Financial Statements.





United Technologies Corporation

Free Cash Flow Reconciliation


                                              Quarter Ended December 31,
                                              (Unaudited)
(Millions)                                    2012              2011
Net income attributable to common
shareowners from                              $ 945             $ 1,280

 continuing operations
Net cash flows provided by operating
activities of                                 $ 1,954           $ 1,910

 continuing operations
 Net cash flows provided by operating
 activities of continuing

  operations as a percentage of net income            207  %          149  %
 attributable to

  common shareowners from continuing
 operations
Capital expenditures                            (641)             (359)
 Capital expenditures as a percentage of net
 income
                                                        (68) %          (28) %
  attributable to common shareowners
 from continuing operations
Free cash flow from continuing operations     $ 1,313           $ 1,551
 Free cash flow from continuing operations
 as a percentage of

  net income attributable to common                   139  %          121  %
 shareowners

  from continuing operations
                                              Year Ended December 31,
                                              (Unaudited)
(Millions)                                    2012              2011
Net income attributable to common
shareowners from                              $ 4,847           $ 4,831

 continuing operations
Net cash flows provided by operating
activities of                                 $ 6,605           $ 6,460

 continuing operations
 Net cash flows provided by operating
 activities of continuing

  operations as a percentage of net income            136  %          134  %
 attributable to

  common shareowners from continuing
 operations
Capital expenditures                            (1,389)           (929)
 Capital expenditures as a percentage of net
 income
                                                        (29) %          (19) %
  attributable to common shareowners
 from continuing operations
Free cash flow from continuing operations     $ 5,216           $ 5,531
 Free cash flow from continuing operations
 as a percentage of

  net income attributable to common                   108  %          114  %
 shareowners

  from continuing operations

United Technologies Corporation
Notes to Condensed Consolidated Financial Statements
(1)Debt to total capitalization equals total debt divided by total debt plus
equity. Net debt to net capitalization equals total debt less cash and cash
equivalents divided by total debt plus equity less cash and cash equivalents.
(2)Organic sales growth represents the total reported increase within the
Corporation's ongoing businesses less the impact of foreign currency
translation, acquisitions and divestitures completed in the preceding twelve
months and significant non-recurring items.
(3)Free cash flow, which represents cash flow from operations less capital
expenditures, is the principal cash performance measure used by UTC.
Management believes free cash flow provides a relevant measure of liquidity
and a useful basis for assessing UTC's ability to fund its activities,
including the financing of acquisitions, debt service, repurchases of UTC's
common stock and distribution of earnings to shareholders. Other companies
that use the term free cash flow may calculate it differently. The
reconciliation of net cash flow provided by operating activities, prepared in
accordance with generally accepted accounting principles, to free cash flow is
shown above.
(4)Prior period amounts reported within these Condensed Consolidated
Financial Statements have been revised for:
  oThe combination of the financial results of the former Carrier and UTC
    Fire & Security segments into a new segment called UTC Climate, Controls &
    Security; and
  oDiscontinued operations related to actual and planned divestiture of a
    number of non-core businesses.

Contact: John Moran, UTC
(860) 728-7062

SOURCE United Technologies Corp.

Website: http://www.utc.com
 
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