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Brooke Sutherland

United Tech Needs a Breakup But Has Options

The industrial conglomerate's results underscore the case for a split, but it has room to be creative.

United, for now.

United, for now.

Photographer: Daniel Acker/Bloomberg

United Technologies Corp.’s latest earnings give breakup enthusiasts more ammunition, but there’s more than one way to split up this industrial conglomerate.  

The $107 billion company reported a mixed bag of second-quarter results on Tuesday. On the one hand, its adjusted earnings per share beat analysts’ estimates and United Technologies again raised its full-year guidance. On the other, a lot of that earnings beat came from below-the-line benefits on taxes and interest expense. And while profit at the company’s aerospace divisions was stronger than expected, the Otis elevator and climate-controls business turned in weak showings.