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United Technologies Corporation

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United Technologies reported a mixed bag of fourth-quarter 2015 results as adjusted earnings beat the Zacks Consensus Estimate by $0.02, although revenues and GAAP earnings declined year over year. Global macroeconomic challenges and geopolitical tensions remain headwinds. Fluctuations in foreign currency exchange rates continue to adversely affect the company’s net investment in foreign subsidiaries and cause instability in cash flows. These challenges look all the more potent with the strengthening of the US dollar with the hike of interest rates by the Fed. However the company is revamping its aerospace unit to overhaul the organizational structure and accelerate organic growth. Alongside it is also seeking potential acquisition targets to achieve revenue targets and regain its strong growth momentum. In addition, the company expects a successful entry and production ramp-up of its Geared Turbofan engines would thwart competition.

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