THE BUSINESSWEEK 50 RANKINGS + 25

43

United Technologies

The $48 billion manufacturer has delivered consistently strong returns with such brands as Sikorsky helicopters, Pratt & Whitney engines, Otis elevators, and Carrier air conditioners. CEO George David’s dual obsessions—with process improvements and employee development—certainly help. Even his succession has been methodically planned, with Louis Chenevert becoming president and heir apparent in 2006 after running the Pratt & Whitney unit. While challenges loom, including a recent $295 million fine levied by the European Commission against Otis for alleged price-fixing, investors continue to love the company. Its total return over the past three years is 49.6%.

Overall Grade

A-

Market Data

UTX

Market Value
(2/28/2007)

$65.4 Billion

Profitability*

24.2%

B

Sales Growth Rate**

15.4%

B

12-Month Sales

$47.7 Billion

12-Month Net Income

$3.7 Billion

Total Return Past 12 Months

14.1%

Past 36 Months

49.6%

Economic SectorIndustrials
IndustryAerospace & Defense
The overall sector letter grade reflects how the weighted average of the return on income, or return on equity, and sales growth grades compare with others in the same sector. For the overall grade as well as the ROE/ROI and sales growth grades, an "A" places a company in the top 7% of its sector and an "A-" in the top 14% of the sector. The actual ranking was done using the underlying numerical measures. Grades are for information only.
* For nonfinancial companies, three-year average pretax operating profit before interest and special items as a percentage of average invested capital. For financial companies, pretax profits as a percentage of average shareholder's equity.
*Three-year average annual sales growth based on the most recently reported 36 months, calculated using the least-squares method.
$FOOTNOTE

George David

George David, 64

CEO since 1994


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Data as of 2/28/07 provided by Standard & Poor's Compustat