This article
was first published by Seeking Alpha on March 18, 2015
By Sarfaraz
A. Khan
Generally
speaking, well established companies - such as Apple (NASDAQ:AAPL), Microsoft
(NASDAQ:MSFT) and Procter & Gamble (NYSE:PG) - make significant changes to
their businesses when they are forced to do so by ornery investors. However,
Greg Hayes, the new head of United Technologies (NYSE:UTX), has been shaking up
his Hartford, Connecticut based company, even though he is not facing any
serious pressure from shareholders.
Historically,
United Technologies has been one of the most profitable conglomerates in the
U.S., providing equipment to the commercial aerospace, defense and building
industries. The company suffered a major blow in November last year when its
former CEO Louis Chênevert - who was the brains behind the massive $16.3
billion acquisition of Goodrich around five years ago - abruptly retired after
remaining at the helm for six years. He was immediately replaced by his
long-time CFO Hayes, and this could turn out to be a blessing in disguise.
That's
because following Chênevert's departure, United Technologies started to review
its portfolio of businesses in December, including the former CEO's favorite
Sikorsky Aircraft unit. Last week, after years of speculation, the company
finally confirmed that it is exploring "strategic alternatives" for
Sikorsky - the business which makes Black Hawk helicopters for the U.S.
military as well as other helicopters.
I believe
this is a positive development and shows that Hayes is willing to make the big
changes before the company sees any shareholder activism. Although Sikorsky
dominates the global military helicopter market, it has been struggling .… read
full article at Seeking Alpha.
