United Technologies Corp. on Tuesday announced multiple key personnel changes, including the pending retirement of its Chief Financial Officer Akhil Johri.
UTC CEO and Chairman Greg Hayes said during an earnings call Tuesday that Johri, who is well-known in the Greater Hartford business community, will retire Nov. 1 after more than 30 years with the company. Carroll Lane, UTC’s vice president of investor relations, will also move over to jet-engine maker Pratt & Whitney as president of its commercial engine business.
“If there’s a better CFO in corporate America I haven’t met them,” Hayes said of Johri, adding that Neil Mitchell Jr. will step in as acting CFO until at least after UTC’s merger with defense contractor Raytheon is complete.
The personnel changes were announced the same day UTC said its third-quarter profits fell by 7 percent, driven by restructuring costs related to its ongoing efforts to establish its Otis and Carrier divisions as independent companies, which is expected to happen in the first half of 2020.
UTC reported third quarter net income of $1.15 billion, or $1.33 per diluted share, vs. $1.24 billion, or $1.54, in the year-ago period.
The company incurred $518 million in tax expenses related to the Otis and Carrier separation.
The corporation’s share price was $140.20 as of late Tuesday morning, down from an opening price of $140.82.
The company revised its full-year earnings guidance upward, to a range of $8.05 to $8.15 per share, up from a prior range of $7.90 to $8.05.
On a call with analysts Tuesday, Hayes said he is optimistic about the spin offs, as well as UTC’s pending merger with Raytheon.
“I remain very excited about the future of Otis and Carrier as standalone public companies, and for the future of [UTC] as we merge with Raytheon to become Raytheon Technologies,” Hayes said.
While most of UTC’s business units saw their sales increase during the recent quarter, Carrier, which makes heat and air conditioning systems, saw sales decline by 1 percent. Hayes acknowledged “some near-term pressure” on Carrier, but said he was confident Carrier is positioning itself to drive long-term shareholder returns.
