A PYMNTS Company

US: United Technologies defends its deal with Raytheon

By  |  July 24, 2019

United Technologies executives defended their deal after making a slightly raised the company’s 2019 profit outlook reported the Wall Street Journal.

The industrial conglomerate is pursuing a restructuring that will split it into three companies by mid-2020. It also closed its acquisition of aircraft-parts maker Rockwell Collins late last year, and last month agreed to merge with defense contractor Raytheon. 

Activist investors have attacked the Raytheon deal, in particular, saying United Technologies risks losing its focus. But in an interview, finance chief Akhil Johri deflected the criticism.

“Things are starting to come together,” he said. “The investments are paying off.”

The Farmington, Connecticut-based company also is dealing with pressures from trade tensions, including higher US tariffs on inputs, and the grounding of Boeing’s MAX jets. In the recent quarter, the company announced increased volume and pricing for some of its products offset tariff costs.

Full Content: Wall Street Journal

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.