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UTC First Quarter Earnings Per Share Increase 6 Percent To $1.39, Up 16 Percent Adjusted For Restructuring And One-Time Items;

   UTC First Quarter Earnings Per Share Increase 6 Percent To $1.39, Up 16
  Percent Adjusted For Restructuring And One-Time Items; Reaffirms 2013 EPS
                          Outlook Of $5.85 To $6.15

PR Newswire

HARTFORD, Conn., April 23, 2013

HARTFORD, Conn., April 23, 2013 /PRNewswire/ --United Technologies Corp.
(NYSE: UTX) reported first quarter earnings per share of $1.39 and net income
attributable to common shareowners of $1.3 billion, up 6 percent and 7
percent, respectively, over the year ago quarter. Results for the current
quarter include $0.11 per share of favorable one-time items net of
restructuring costs. Earnings per share in the year ago quarter included a
$0.21 benefit from one-time items net of restructuring costs. Before these
items, earnings per share increased 16 percent year over year. Net foreign
currency translation and hedges at Pratt & Whitney Canada had an adverse
impact of $0.01 in the quarter.

Sales for the quarter of $14.4 billion were 16 percent above prior year driven
by the benefit of net acquisitions. Organic sales decreased 2 percent from the
year ago quarter reflecting ongoing weakness in both Europe and the commercial
aerospace aftermarket, and the impact of defense cuts at Sikorsky. First
quarter segment operating profit increased 14 percent over the prior year
quarter. Adjusted for restructuring costs and net one-time items, segment
operating profit grew 15 percent.

"Our focus on integration and execution led to solid performance as we
continue to build momentum," said Louis Chenevert, UTC Chairman & Chief
Executive Officer. "The Goodrich and IAE acquisitions are exceeding our
expectations and creating new opportunities for long term organic growth."

New equipment orders at Otis increased 24 percent over the year ago first
quarter, led by 29 percent growth in China. Foreign currency had a 2 point
favorable impact in China. UTC Climate, Controls & Security equipment orders
increased 5 percent organically. Large commercial engine spares orders were
up 14 percent at Pratt & Whitney including the benefit from the incremental
International Aero Engines share. Organically, commercial spares orders were
down 28 percent at Pratt & Whitney. On a pro-forma basis, adjusted to include
Goodrich in both years, commercial spares orders increased 2 percent at UTC
Aerospace Systems.

"Macroeconomic indicators coupled with order improvement in our commercial
businesses point towards a gradual resumption of organic growth during the
course of the year," Chenevert added. "Our ongoing focus on cost reduction
provides strong operating leverage and we continue to expect 2013 earnings per
share of $5.85 to $6.15 on sales of $64 to $65 billion."

Cash flow from operations was $1.4 billion and capital expenditures were $295
million in the quarter. Share repurchase was $335 million and UTC continues to
anticipate share repurchase and acquisitions of $1 billion each in 2013. The
company continues to expect cash flow from operations less capital
expenditures to meet or exceed net income attributable to common shareowners
for the year.

"We started our share repurchase program and closed additional divestitures
this quarter in accordance with our plan," Chenevert said. "Our strong cash
position will allow us to pay down $2 billion of debt in 2013, up from our
prior estimate of $1 billion, as we execute our deleveraging strategy."

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. To learn more about UTC,
visit the website or follow the company on Twitter: @UTC

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, charges, expenditures, anticipated benefits of acquisitions and
divestitures, results of operations, share repurchases, 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 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; changes
in government procurement priorities and availability of funding; 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, 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 regulatory approvals on
acceptable terms, and satisfaction of other customary conditions. The timing
and amount of share repurchases depends upon UTC's evaluation of market
conditions and the level of other investing activities and uses of cash. The
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 the date of 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
(Millions, except per share amounts)  Quarter Ended March 31,
                                      (Unaudited)
Net sales                             2013                  2012
                                      $      14,399   $    12,416
Costs and Expenses:
Cost of products and services sold    10,465                8,930
Research and development              610                   544
Selling, general and administrative   1,627                 1,529
Total Costs and Expenses              12,702                11,003
Other income, net                     309                   300
Operating profit                      2,006                 1,713
Interest expense, net                 236                   129
Income from continuing operations     1,770                 1,584
before income taxes
Income tax expense                    418                   320
Income from continuing operations     1,352                 1,264
Less: Non-controlling interest in
subsidiaries' earnings from           82                    75
continuing operations
Income from continuing operations     1,270                 1,189
attributable to common shareowners
Discontinued operations:
Income from operations                20                    30
Loss on disposal                      (15)                  (961)
Income tax benefit (expense)          (9)                   74
Loss from discontinued operations     (4)                   (857)
Less: Non-controlling interest in
subsidiaries' earnings from           —                     2
discontinued operations
Loss from discontinued operations     (4)                   (859)
attributable to common shareowners
Net income attributable to common     $        1,266 $       330
shareowners
Comprehensive income                  $         908 $       904
Less: Comprehensive income
attributable to non-controlling       61                    85
interests
Comprehensive income attributable to  $         847 $       819
common shareowners
Earnings (Loss) Per Share of Common
Stock - Basic:
From continuing operations            $             $      1.33
attributable to common shareowners    1.41
From discontinued operations                                (0.96)
attributable to common shareowners
Earnings (Loss) Per Share of Common
Stock - Diluted:
From continuing operations            $             $      1.31
attributable to common shareowners    1.39
From discontinued operations                                (0.95)
attributable to common shareowners
Weighted average number of shares
outstanding:
Basic shares                          901                   891
Diluted shares                        914                   904
As described on the following pages, consolidated results for the quarters
ended March 31, 2013 and 2012 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


(Millions)                      Quarter Ended March 31,

Net Sales                       (Unaudited)
                                2013                           2012
Otis                            $                $    2,770
                                        2,814
UTC Climate, Controls &         3,837                          4,112
Security
Pratt & Whitney                 3,402                          3,052
UTC Aerospace Systems           3,263                          1,236
Sikorsky                        1,249                          1,346
Segment Sales                   14,565                         12,516
Eliminations and other          (166)                          (100)
Consolidated Net Sales          $                $   12,416
                                       14,399
Operating Profit
Otis                            $                $      566
                                          575
UTC Climate, Controls &         520                            544
Security
Pratt & Whitney                 406                            389
UTC Aerospace Systems           501                            198
Sikorsky                        90                             136
Segment Operating Profit        2,092                          1,833
Eliminations and other          21                             (24)
General corporate expenses      (107)                          (96)
Consolidated Operating Profit   $                $    1,713
                                        2,006
Segment Operating Profit Margin
Otis                            20.4%                          20.4%
UTC Climate, Controls &         13.6%                          13.2%
Security
Pratt & Whitney                 11.9%                          12.7%
UTC Aerospace Systems           15.4%                          16.0%
Sikorsky                        7.2%                           10.1%
Consolidated Segment Operating  14.4%                          14.6%
Profit Margin
As described on the following pages, consolidated results for the quarters
ended March 31, 2013 and 2012 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 Consolidated Results
In Millions - Income (Expense)             Quarter Ended March 31,
                                           (Unaudited)
Restructuring Costs included in Operating
Profit:                                    2013              2012
Otis                                       $         $      
                                           (10)              (28)
UTC Climate, Controls & Security           (22)              (35)
Pratt & Whitney                            (7)               (37)
UTC Aerospace Systems                      (8)               (2)
Sikorsky                                   (5)               (3)
Eliminations and other                                       (6)
                                           (52)              (111)
Non-Recurring items included in Operating
Profit:
UTC Climate, Controls & Security           38                112
Eliminations and other                                       (10)
                                           38                102
Total impact on Consolidated Operating     (14)              (9)
Profit
Non-Recurring items included in Interest   —                 15
Expense, Net
Tax effect of restructuring and            16                (23)
non-recurring items above
Non-Recurring items included in Income Tax 95                203
Expense
Impact on Net Income from Continuing       $        
Operations Attributable to Common          97               $       186
Shareowners
Impact on Diluted Earnings Per Share from  $          $      0.21
Continuing Operations                      0.11



Details of the non-recurring items for the quarters ended March 31, 2013 and
2012 above are as follows:

Quarter Ended March 31, 2013

UTC Climate, Controls & Security: Approximately $38 million net gain from UTC
Climate, Controls & Security's ongoing portfolio transformation, primarily due
to a gain on the sale of a business in Hong Kong.

Income Tax Expense: Approximately $95 million of favorable income tax
adjustments as a result of the enactment of the American Taxpayer Relief Act
of 2012 in January 2013. The $95M is primarily related to the retroactive
extension of the research and development credit to 2012.

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.

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)
(Millions)                         Quarter Ended March 31,

Net Sales                          (Unaudited)
                                   2013                      2012
Otis                               $             $     2,770
                                         2,814
UTC Climate, Controls & Security   3,837                     4,112
Pratt & Whitney                    3,402                     3,052
UTC Aerospace Systems              3,263                     1,236
Sikorsky                           1,249                     1,346
Segment Sales                      14,565                    12,516
Eliminations and other             (166)                     (100)
Consolidated Net Sales             $             $    12,416
                                        14,399
Adjusted Operating Profit
Otis                               $             $       594
                                           585
UTC Climate, Controls & Security   504                       467
Pratt & Whitney                    413                       426
UTC Aerospace Systems              509                       200
Sikorsky                           95                        139
Segment Operating Profit           2,106                     1,826
Eliminations and other             21                        (8)
General corporate expenses         (107)                     (96)
Adjusted Consolidated Operating    $             $     1,722
Profit                                   2,020
Adjusted Segment Operating Profit
Margin
Otis                               20.8%                     21.4%
UTC Climate, Controls & Security   13.1%                     11.4%
Pratt & Whitney                    12.1%                     14.0%
UTC Aerospace Systems              15.6%                     16.2%
Sikorsky                           7.6%                      10.3%
Adjusted Consolidated Segment      14.5%                     14.6%
Operating Profit Margin



United Technologies Corporation

Condensed Consolidated Balance Sheet
                               March 31,                       December 31
(Millions)
                               2013                            2012
Assets
                               (Unaudited)                     (Unaudited)
                               $                $    4,819
Cash and cash equivalents                  4,767
Accounts receivable, net       10,791                          11,099
Inventories and contracts in   10,161                          9,537
progress, net
Assets held for sale           938                             1,071
Other assets, current          2,504                           3,084
Total Current Assets      29,161                          29,610
Fixed assets, net              8,428                           8,518
Goodwill                       27,516                          27,801
Intangible assets, net         15,125                          15,189
Other assets                   8,283                           8,291
Total Assets                   $                $   89,409
                                          88,513
Liabilities and Equity         $                $    1,624
Short-term debt                             1,252
Accounts payable               6,192                           6,431
Accrued liabilities            14,854                          15,310
Liabilities held for sale      261                             421
Total Current Liabilities      22,559                          23,786
Long-term debt                 21,572                          21,597
Other long-term liabilities    16,564                          16,719
Total Liabilities              60,695                          62,102
Redeemable non-controlling     255                             238
interest
Shareowners' Equity:
Common Stock                   14,085                          13,837
Treasury Stock                 (19,575)                        (19,251)
Retained earnings              37,551                          36,776
Accumulated other              (5,867)                         (5,448)
comprehensive loss
Total Shareowners' Equity      26,194                          25,914
Non-controlling interest       1,369                           1,155
Total Equity                   27,563                          27,069
Total Liabilities and Equity   $                $   89,409
                                          88,513
Debt Ratios:
Debt to total capitalization   45%                             46%
Net debt to net capitalization 40%                             40%
See accompanying Notes to Condensed Consolidated Financial Statements.



United Technologies Corporation

Condensed Consolidated Statement of Cash Flows
(Millions)                                      Quarter Ended March 31,
                                                (Unaudited)
Operating Activities of Continuing Operations:  2013            2012
Income from continuing operations               $         $    
                                                1,352          1,264
Adjustments to reconcile net income from
continuing operations to net cash flows
provided by operating activities of continuing
operations:
Depreciation and amortization                   444             318
Deferred income tax (benefit) provision         (40)            159
Stock compensation cost                         70              47
Change in working capital                       (198)           (189)
Global pension contributions                    (29)            (13)
Other operating activities, net                 (190)           (263)
Net cash flows provided by operating activities 1,409           1,323
of continuing operations
Investing Activities of Continuing Operations:
Capital expenditures                            (295)           (187)
Acquisitions and dispositions of businesses,    722             (20)
net
Increase in collaboration intangible assets     (157)           —
Other investing activities, net                 69              97
Net cash flows provided by (used in) investing  339             (110)
activities of continuing operations
Financing Activities of Continuing Operations:
Repayment of long-term debt, net                (46)            (63)
Decrease in short-term borrowings, net          (329)           (404)
Dividends paid on Common Stock                  (465)           (412)
Repurchase of Common Stock                      (335)           —
Other financing activities, net                 156             42
Net cash flows used in financing
activities of continuing           (1,019)                      (837)
operations
Discontinued Operations:
Net cash used in operating         (715)                        (21)
activities
Net cash used in investing         (51)                         (1)
activities
Net cash used in financing                                      (2)
activities
Net cash flows used in             (766)                        (24)
discontinued operations
Effect of foreign exchange rate
changes on cash and cash           (18)                         50
equivalents
Net (decrease) increase in cash    (55)                         402
and cash equivalents
Cash and cash equivalents,         4,836                        5,960
beginning of period
Cash and cash equivalents, end of  4,781                        6,362
period
Less: Cash and cash equivalents of 14                           77
assets held for sale
Cash and cash equivalents of       $               $    
continuing operations, end of         4,767                  6,285
period
See accompanying Notes to Condensed Consolidated Financial Statements.





United Technologies Corporation

Free Cash Flow Reconciliation
                                                   Quarter Ended March 31,
(Millions)
                                                   (Unaudited)
                                                   2013          2012
Net income attributable to common shareowners from $ 1,270       $ 1,189
continuing operations
Net cash flows provided by operating activities of $ 1,409       $ 1,323
continuing operations
Net cash flows provided by operating activities of
continuing operations as a percentage of net               111 %         111 %
income attributable to common shareowners from
continuing operations
Capital expenditures                               (295)         (187)
Capital expenditures as a percentage of net income
attributable to common shareowners from continuing         (23)%         (16)%
operations
Free cash flow from continuing operations          $ 1,114       $ 1,136
Free cash flow from continuing operations as a
percentage of net income attributable to common            88 %          95 %
shareowners from continuing operations



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 discontinued operations related
    to the actual and planned divestiture of the UTC Power business.



Contact: John Moran, UTC
         (860) 728-7062
         Investor Relations
         (860) 728-7608

SOURCE United Technologies Corp.

Website: http://www.utc.com
 
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