My 401K is up 2.08% YTD, not blazing out the gate, but, anything positive is good. This rate is about 11.6% at an annual rate, I'll take it. Greed is good, but, you can't get too greedy....Kid
No interpretation needed if you take UTC at its word. However, it does not mean if UTC gets its price for Sikorsky, that they will not sell it. I spoke to someone at S today about the layoffs and they have let a bunch of the 600 go already and more are being walked out today. The cash situation there is really poor. Great leadership, right? It just keeps getting worse and the only place to make it up is by chopping people. These are people with 20-30 years there.
It's all good.....EAST HARTFORD — Connecticut and United Technologies Corp., the state's largest private employer, announced an agreement Wednesday that would anchor the manufacturing giant in the state with up to $400 million in tax breaks.
The deal, which needs legislative approval, opens up more research and development tax credits to the company in exchange for continued research and development spending and half a billion dollars in new facilities, including a new global headquarters for Pratt & Whitney in East Hartford.
Much of the deal is subject to the company's creating hundreds of jobs, paying certain wages, and investing in research ventures in Connecticut, where United Technologies employs 22,200 employees.
"What we are doing today is laying the foundation for the future, a long-term foundation with respect to the relationship between the state of Connecticut with its largest employer, a future where Pratt & Whitney, Sikorsky and other United Technologies companies continue to call Connecticut home," Gov. Dannel P. Malloy said to employees packed in a Pratt & Whitney hangar scattered with aircraft engines.
The agreement guarantees that Pratt & Whitney keep its headquarters in Connecticut for 15 years and build a new engineering center; that Sikorsky keep its headquarters in the state for five years; that the company's central labs, the United Technologies Research Center, expand its facilities; and that UTC Aerospace Systems in Windsor Locks builds a customer training center.
Construction on the new facilities is planned to begin this year and continue through 2018.
Malloy called the agreement a "once-in-a-generation opportunity" to keep and create good-paying jobs, at United Technologies and the hundreds of the aerospace companies in Connecticut that it relies on for parts. In December, Connecticut's aerospace sector counted 29,200 employees, according to the U.S. Bureau of Labor Statistics, down from its peak of 32,400 in 2008.
"No sooner had I been elected governor that I began fretting about the footprint of some of our largest employers, and United Technologies certainly being one of those," Malloy said. "We went to work to make sure that Connecticut would share for generations to come in the innovation that's already taking place on this campus."To get the most from the deal, Pratt, UTC Aerospace Systems and United Technologies Research Center will have to increase their in-state engineering head count to 5,000 from 4,900, increase total employees to 14,400 from 14,100, maintain a combined in-state payroll of $1.565 billion, and spend $810 million on research and development and capital projects. Separate investment levels at Sikorsky are required to guarantee additional funding.
Louis Chênevert, chief executive and chairman of United Technologies, said the "agreement supports Connecticut in ways that will be seen for many years, but people will look back a decade or two from now and say, 'This was the moment, this was the day when it all happened.' "
The mechanism for the funding, though it does not involve borrowing or payments from the state, relies on carving out new limits for how much United Technologies can gain from tax credits in a year.
In Connecticut, United Technologies' business units and central research lab spend more than $1 billion annually in research and development, a category that includes both basic research and engineering, such as Pratt's adapting its commercial engines for various aircraft models. Last year, the company spent more than $4.7 billion on global research and development.
The massive research bill qualifies the company for large amounts of research and development credits from the state to offset taxes. But the company is currently limited in the amount of credits it can use each year, resulting in hundreds of millions of dollars in stranded tax credits.
The pending legislation that would authorize the deal, called "The Connecticut Aerospace Reinvestment Act," will allow United Technologies to offset future sales and income taxes. Over the next 14 years, the company could qualify for up to $400 million in additional tax offsets that would otherwise be out of reach.
The approach, outlined by state officials Wednesday, mirrors one analyzed by the Connecticut Center for Economic Analysis at UConn in 2010 that would allow state companies to utilize the hundreds of millions of dollars in unused investment tax credits over a number of years.
"It looks like an extremely good idea, the kind of imaginative, creative economic development strategy that the state ought to be pursuing," Fred V. Carstensen, the center's director, said Wednesday. "Hopefully this will become a general policy."
Malloy acknowledged that there are other Connecticut companies with tax situations similar to United Technologies, though the act would not automatically enable comparable tax breaks for them.
Wednesday's announcement comes just days after Sikorsky announced it would lay off 600, mostly in Connecticut. But Pratt would benefit from increases by the Pentagon to develop efficient military jet engines.
Shares of United Technologies stock closed Wednesday up a slight 22 cents on the New York Stock Exchange, at 116.11 per share.
Courant staff writer Mara Lee contributed to this story.
Copyright © 2014, The Hartford Courant
Feb 26 (Reuters) - United Technologies Corp will build a new headquarters for its Pratt & Whitney jet engine division in Connecticut as part of a commitment to keep operations in the state, Governor Dannel Malloy's office said on Wednesday.
United Technologies has committed to keep its Pratt headquarters in Connecticut for at least 15 years and its headquarters for its Sikorsky helicopter unit in the state for at least five years, the governor's office said. The company will also build a new Pratt engineering "center of excellence" in the state.
United Technologies, which itself is based in Hartford, Connecticut, agreed to spend up to $500 million to upgrade and expand its aerospace research and development and manufacturing facilities over the next five years.
I don't yet hear the fat lady singing. QE-V is reputed to be in the offing, perhaps the fat lady has the flu?
Agree, though, that taking a fair profit is not a bad idea.
I did not say, or mean for you to think that I sold at 120. Poor wording on my part. I lightened up around 118 and bought around 110. I plan on lightening up again if it gets to 120. 120 is my 'new' goal.
Last time it hit 118 I lightened up a bit and then bought a bit at 110. I am guessing I may get another opportunity to sell at 120 in the not-too-distant future. Happy days are here again. No complaints with UTX performance over the last 15 months. Outstanding!
Finally, United Technologies (NYSE: UTX ) rose 1.3% this week as its Pratt & Whitney unit continues to gain share in commercial aircraft. A rush of orders for new jet turbines have come in during February, topped off by an order for PurePower Engines in an order from Air Costa for 50 Embraer jets this week. Pratt & Whitney is gaining momentum in its effort to gain share in commercial jets and the last few weeks are a big sign of that.
Like I said, the tax code needs to be changed to bring it in line with a fairer taxing strategy and make it easier for the average high school grad to do their own taxes. I do not think anyone would disagree. I would like to see the income tax to be completely done away with and have a national sales tax. That way, you end up taxing even the underground economy money that allot of small businesses and individuals are hiding. When they spend it on all their niceties, they pay their taxes.