UTC’s Building and Industrial Systems
UTC’s (UTX) Building and Industrial Systems segment was formed in 2013 as the world’s largest provider of building systems. The segment is a combination of Otis and UTC’s Climate segments, though each segment reports its financials separately. The Building and Industrial segment is United Technologies’ largest business segment, forming 46% of the company’s total revenues.
The Otis segment designs, manufactures, and installs a wide range of passenger and freight elevators for low-medium and high-speed applications, as well as a broad line of escalators and moving walkways. This segment also provides services and products to upgrade elevators and escalators as well as maintenance and repair services for both its products and those of other manufacturers.
The revenues and operating income from the Otis segment have remained almost constant for the last five years, with a compounded average growth of just 1%. Revenues grew from $11.78 billion in 2009 to $12.48 billion in 2013, while operating income increased from $2.45 billion in 2009 to $2.59 billion in 2013.
Climate, Controls & Security segment
UTC’s Climate, Controls & Security segment provides air conditioning (or HVAC) and refrigeration solutions, heating, ventilating, and controls for residential, commercial, industrial, and transportation applications. It also provides products and services for security and fire safety, monitoring, response and security personnel services, including cash-in-transit security, to complement its electronic security and fire safety businesses.
Revenues for this segment have decreased from $18.86 billion in 2011 to $16.81 billion in 2013, while operating income increased from $2.21 billion in 2011 to $2.59 billion in 2013.
In our next article we’ll find out more about UTC’s Propulsion and Aerospace segment.