Stock Update (NYSE:UTX): United Technologies Corporation Announces Organization and Leadership Changes To Commercial Businesses

United Technologies Corporation (NYSE:UTX) announced a new organizational structure to better serve customers by operating Otis Elevator and UTC Climate, Controls & Security as stand-alone businesses. Philippe Delpech will become President of Otis, andRobert J. McDonough will become President of CCS, which includes such brands as Carrier, Transicold, Kidde, Chubb and Edwards.

These appointments are effective immediately and both executives report directly to UTC President and Chief Executive Officer Gregory Hayes.

“As the world’s largest supplier of commercial building systems, UTC has tremendous growth opportunities driven by global urbanization and an expanding middle class,” Hayes said. “By creating clear lines of authority and accountability, this new organizational structure better positions Otis and CCS to capitalize on these opportunities with our innovative, energy-efficient products.

“As we refocus on the growth platforms of our business, this further evolution of our commercial organization will sharpen our focus on the distinct needs of Otis, CCS and our iconic brands, while retaining the revenue and cost synergies achieved through UTC Building & Industrial Systems,” he added.

Delpech, who has been serving as Chief Operating Officer, Intercontinental Operations, for BIS, joined UTC inNovember 2000 as a vice president in Carrier’s European business and has worked in multiple positions of increasing responsibility. McDonough, who has been serving as Chief Operating Officer, Americas, for BIS, joined UTC in 2007 after 15 years with Lennox International, where he was President and Chief Operating Officer of Worldwide Heating & Cooling as well as Executive Vice President of Lennox International.

“Both Philippe and Bob have outstanding qualifications and experience as senior executives of building systems businesses,” Hayes said. “I have great confidence in their ability to serve customers and deliver shareholder value as they lead their respective companies into the future.”

UTC BIS President and CEO Geraud Darnis, who in July announced his intention to retire, will continue with UTC through January 2016 to ensure a smooth transition of responsibilities with a key focus on continuing the successful delivery of integrated building systems to customers globally and particularly in emerging markets.

The UTC Building & Industrial Systems organization will transition over the rest of the year as UTC institutes ways to preserve the cost and revenue synergies achieved by BIS. (Original Source)

Shares of United Technologies closed yesterday at $91.85. UTX has a 1-year high of $124.45 and a 1-year low of $87.17. The stock’s 50-day moving average is $96.07 and its 200-day moving average is $110.58.

On the ratings front, United Technologies has been the subject of a number of recent research reports. In a report issued on August 31, Jefferies Co. analyst Howard Rubel initiated coverage with a Buy rating on UTX. Separately, on the same day, Barclays’ Carter Copeland downgraded the stock to Hold and has a price target of $100.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Howard Rubel and Carter Copeland have a total average return of 19.7% and 13.7% respectively. Rubel has a success rate of 77.9% and is ranked #65 out of 3752 analysts, while Copeland has a success rate of 69.6% and is ranked #210.

Overall, 3 research analysts have assigned a Hold rating and 3 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $108.67 which is 18.3% above where the stock closed yesterday.

United Technologies Corporation provides high technology products and services to the building systems and aerospace industries. Its business segments are Otis, UTC Climate, Controls & Security, Pratt & Whitney, UTC Aerospace Systems and Sikorsky.

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