2016
Annual Report
Scroll Down
Dear
Shareowner
Greg Hayes
Chairman & CEO
Otis
A city of skyscrapers, Chicago has long been defined by the Willis Tower. Otis, the company that invented the modern elevator and sets the industry standard, has been selected to modernize elevators in this landmark building.
Otis has been changing skylines for more than a century, allowing architects’ imaginations to soar and buildings to climb ever higher. The Made to Move You campaign shows the ways people interact with Otis elevators in their daily lives, and how Otis technology moves them — literally and figuratively. This short video features a poem written by James Massiah, a poet commissioned by Otis, and follows the stories of passengers in an elevator, showing how Otis elevators have become an integral part of modern lifestyles, moving passengers vertically to destinations, and acting as the vessel for the life experiences that happen along the way. We invite you to watch this video and share moments in motion with the more than 1.9 billion people who are moved each day by Otis elevators and escalators.
Otis, the company that invented the modern elevator, continues its spirit of innovation with the introduction of the New Gen2® elevator family of intelligent, connected elevators. The New Gen2 elevator family offers new connectivity components activated by Otis service offerings: the eCall™ mobile application that allows passengers to call and direct an elevator from their smartphone, and an eView™ screen that can be programmed to provide a variety of news and information for passengers.
The London skyline is set to change with the construction of the Twentytwo development on Bishopsgate. The 59-story building will be outfitted with 67 state-of-the-art Otis elevators and escalators, including the fastest SkyRise double-deck elevators in Europe. Scheduled for completion in 2019, Twentytwo will be located in London’s financial district and will provide office space for approximately 12,000 people.
67,396
Employees
$11.9B
Net Sales
$2.2B*
Adjusted Operating Profit
Otis PDF
*Adjusted operating profit is a non-GAAP financial measure. For additional information regarding the use of this measure, the corresponding amount prepared in accordance with generally accepted accounting principles (GAAP) and a reconciliation of the differences between the non-GAAP and GAAP measure, please refer to page 71 in the Annual Report PDF.
UTC Climate, Controls & Security
Backed by more than 80 of the world’s most respected brands, UTC Climate, Controls & Security is at the forefront of developing digital products that can be connected to provide safety, comfort, convenience and greater productivity for a building’s occupants. At the same time, it builds on a legacy of innovation, continuing to deliver products that are energy efficient, environmentally responsible and cost competitive.
Carrier’s latest innovation uses advanced technology to deliver a centrifugal chiller that meets customer demands for excellent performance, efficiency and environmental responsibility. The new AquaEdge 19DV centrifugal chiller with Greenspeed® intelligence and a low Global Warming Potential refrigerant illustrates Carrier’s ability to innovate and develop engineered solutions that save energy costs and reduce environmental impact.
U.K. retailer Sainsbury’s is the first customer to take delivery of Carrier Transicold’s prototype natural refrigerant trailer unit. It is the first of three units that will join the Sainsbury’s fleet as part of a three-year technology field trial. The unit operates exclusively with carbon dioxide refrigerant, a safe and non-ozone depleting gas with a Global Warming Potential of just one. CO2 is the baseline against which all other refrigerants are measured.
Onity’s DirectKey mobile access solution enables guests to use their smartphone as their room key. Designed for a superior guest experience, the DirectKey system combines the company’s years of expertise in hotel locking systems, along with a proven Bluetooth technology and key credentialing platform. DirectKey offers secure, easy access to a guest’s hotel room and other access-controlled areas. Onity is a leading provider of access control solutions to the hospitality industry.
56,475
Employees
$16.9B
Net Sales
$3.1B*
Adjusted Operating Profit
UTC Climate, Controls & Security PDF
*Adjusted operating profit is a non-GAAP financial measure. For additional information regarding the use of this measure, the corresponding amount prepared in accordance with generally accepted accounting principles (GAAP) and a reconciliation of the differences between the non-GAAP and GAAP measure, please refer to page 71 in the Annual Report PDF.
Pratt & Whitney
Pratt & Whitney’s game-changing Geared Turbofan engine continues to take flight, powering a new generation of commercial aircraft, including the Bombardier CS300 jetliner. Equipped with state-of-the art technologies, every GTF engine generates hundreds of data parameters, which are then analyzed and used to predict an aircraft’s performance and customized service needs. With the GTF engine, Pratt & Whitney is committed to creating a cleaner world for generations to come through green aviation technology.
As the revolutionary Geared Turbofan (GTF) engine enters service, Pratt & Whitney is taking steps to ensure that it has a strong maintenance, repair and overhaul network in place to support the GTF. As a major part of that effort, during the year, Pratt & Whitney announced a $65 million investment in its engine overhaul facility in Columbus, Ga. The facility draws on decades of high-volume engine maintenance experience and is the company’s engine overhaul center of excellence in North America.
Pratt & Whitney and the U.S. Air Force shared a milestone in 2016 when the F-35A Lightning II fifth-generation fighter aircraft was declared combat ready. Pratt & Whitney developed the F135 engine that powers the aircraft, the most technologically advanced in history. The F-35A will be the most dominant aircraft in the Air Force’s inventory, able to go where legacy aircraft cannot and to provide the capabilities needed on the modern battlefield.
Pratt & Whitney Canada will power 55 new Leonardo Helicopters dedicated to emergency medical services in China. The PT6 helicopter engine (powering the AW119Kx and AW139) is one of the most durable and reliable engines on the market and is ideal for emergency medical response and life-saving missions. The PW210 engine (powering the AW169) incorporates the latest generation technologies enabling auxiliary power unit mode and safe, on-ground ambulance capabilities as well as best-in-class inflight performance.
35,104
Employees
$15.1B*
Adjusted Net Sales
$1.8B*
Adjusted Operating Profit
Pratt & Whitney PDF
*Adjusted net sales and adjusted operating profit are non-GAAP financial measures. For additional information regarding the use of these measures, the corresponding amount prepared in accordance with generally accepted accounting principles (GAAP) and a reconciliation of the differences between the non-GAAP and GAAP measure, please refer to page 71 in the Annual Report PDF.
UTC Aerospace Systems
UTC Aerospace Systems is advancing modern flight with sophisticated systems that make aircraft more electric, more intelligent and more integrated. The vast amount of data generated by these systems is gathered, analyzed and delivered in real time to enhance the safety, efficiency and overall performance of an aircraft.
UTC Aerospace Systems is developing digital technologies that can be integrated on aircraft to ensure safety and enhance performance. One example is OpsInsight™, a mobile app that sends preflight and inflight data to a pilot’s tablet. With immediate access to live data, the pilot can adjust aircraft operations to improve fuel consumption, on-time departures and arrivals, as well as eliminate paperwork.
UTC Aerospace Systems was well-represented on the maiden flight of the Embraer E2 next-generation jet, which took to the air in late May. The E2 is equipped with numerous systems and components developed by UTC Aerospace Systems, including wheels and carbon brakes, the electric system, as well as fire protection, evacuation systems and air data systems.
The safety of military pilots has been greatly enhanced by the next-generation ACES 5™ — an advanced concept ejection seat developed by UTC Aerospace Systems. The seat is embedded with unique safety features and intelligent technology that allow a pilot to eject from an aircraft safely and with reduced risk of ejection-related injuries. The ACES 5 can accommodate the entire population of pilots flying in today’s U.S. Air Force.
UTC Aerospace Systems continues to advance its revolutionary MS-177 long-range, multi-spectral imaging sensor. The MS-177 provides unmatched imaging and detailed surveillance, allowing the U.S. Air Force to find, track and assess targets with greater accuracy than ever before. It is being integrated and tested on the Global Hawk Unmanned Aircraft System.
40,959
Employees
$14.5B
Net Sales
$2.3B*
Adjusted Operating Profit
UTC Aerospace Systems PDF
*Adjusted operating profit is a non-GAAP financial measure. For additional information regarding the use of this measure, the corresponding amount prepared in accordance with generally accepted accounting principles (GAAP) and a reconciliation of the differences between the non-GAAP and GAAP measure, please refer to page 71 in the Annual Report PDF.
Employee Scholar Program
We take pride in being known as a company that sets big goals and delivers big results. We do this by having a highly educated, engaged and motivated workforce. The Employee Scholar Program helps make that possible.
38,500+
Degrees Earned
$1.2B+
Invested
6,000+
Employees Currently Enrolled
Employee Scholar Program PDF
Sustainability
United Technologies is proof that a company can grow profitability while pursuing ambitious sustainability goals. Over the past 20 years UTC has cut water use by more than half and lowered greenhouse gas emissions by a third — even as sales tripled. The company’s 2020 Sustainability Goals raise the bar even higher and keep UTC on track to lower greenhouse gas emissions by 80 percent by 2050. The company’s sustainability goals apply to all business operations, products and suppliers.
Each day 180,000 people move to urban areas. This historic migration is creating an urgent need for sustainable buildings, food and transportation networks. National Geographic and United Technologies have launched the Urban Expeditions initiative to raise awareness of the need for sustainable urbanization. Urban Expeditions looks at six global cities to identify the challenges and possible solutions to urban population growth.
The number of commercial aircraft is expected to double to approximately 44,000 in the next 20 years. This could mean a dramatic increase in carbon dioxide emissions — but it doesn’t have to. UTC has developed a white paper and blog that details trends in green aviation technology that can allow tremendous growth in air travel to occur in a sustainable manner.
Studying 109 workers at 10 buildings in five cities across the United States, researchers at Harvard T.H. Chan School of Public Health and SUNY Upstate Medical University discovered that working in green-certified buildings was associated with higher cognitive function scores, fewer sick building symptoms and higher sleep quality scores. Primary support for the study came from UTC and its UTC Climate, Controls & Security business.