"We're done getting smaller at UTC."
Greg Hayes
One day after announcing the sale of its Sikorsky Aircraft Unit, Hartford-based United Technologies Corporation is talking about what comes next.
On Tuesday, UTC CEO Greg Hayes told investors the company plans to use some of the cash from the $9 billion sale of the helicopter maker to buy back its own stock, to keep earnings per share fairly stable.
"We’ve got a good balance between commercial and aerospace, and I don’t see any more big divestitures," Hayes said. "I think, instead, we’re going to build the business, and we’re going to build it through M-and-A, and to the extent that we can’t find M-and A that creates value, we’re going to return the capital to you guys."
Hayes said the company will be looking at mergers and acquisitions more in keeping with its core areas of aerospace systems, and building climate controls and security systems.
"We’ve got some things in our sights that hopefully can come to fruition this year," Hayes said. "We’re going to be more aggressive. I think we have to continue to use the balance sheet to grow the portfolio."
The company saw second-quarter declines in both revenues and profits, and reduced its outlook for the rest of the year. "To say that I’m disappointed would be a significant understatement," Hayes said.
But Hayes is looking to grow: "We’re done getting smaller at UTC," he said.
Hayes said the forecast is disappointing, but the company remains confident.