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Earnings Calls: 
United Technologies Second Quarter Earnings Call
Author: 123jump.com Staff
123jump.com
Last Update: 4:56 PM EDT July 30 2007


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The revenue of United Technologies rose 13.4% to $13.9 billion, driven by continued strength in aerospace and nonresidential construction. The weak spot on the balance sheet was North American residential heating, ventilating and air conditioning business, reflecting the continuing U.S. housing downtown. Pratt & Whitney Rocketdyne unit was awarded a $1.2 billion NASA contract to develop and test a J-2X rocket engine to power the Ares I and Ares V launch vehicles.


Investors Question and Answers

 
Chris Kotowicz (A.G. Edwards): Are you seeing any indication that nonresidential construction is going to slowdown in North America over the next 12 months?

Greg Hayes: The company has not seen such indications.

Chris Kotowicz (A.G. Edwards): Would you say it is accelerating outside of North America?

Greg Hayes: It is Steady but good. Asia, especially China is strong with 40% order growth rate.

Chris Kotowicz (A.G. Edwards): How many unit shipments you had in the quarter in terms of power?

Jim Geisler: The company shipped 10 units in the quarter combined of all the power units.

Chris Kotowicz (A.G. Edwards): How do you see the market evolving?

Greg Hayes: For the remainder of this year the company expects a strong market in power, slower next year. Pratt Power has benefit for the availability of the machines and they have been able to capitalize on what is a strong market out there, so the company does not want to comment too much on 2008.

Chris Kotowicz (A.G. Edwards): Does strong mean better than 10 a quarter?

Jim Geisler: Yes.

Chris Kotowicz (A.G. Edwards): What is your current foreign exchange assumption on dollar to Euro?

Greg Hayes: It is about $1.36.
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