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United Tech reorganizes elevator, building systems operations

The ticker symbol for United Technologies is displayed on a screen on the floor of the New York Stock Exchange July 20, 2015. REUTERS/Brendan McDermid

(Reuters) - United Technologies Corp (UTX.N) said on Thursday it would operate its Otis elevator and climate controls and security divisions as stand-alone units, the latest organizational shake-up by the U.S. conglomerate under Chief Executive Greg Hayes.

The changes come after United Technologies in July cut its 2015 profit outlook for the third time this year, in part due to weaker expected performance in its Otis business.


United Tech two years ago had combined Otis and the climate, controls and security system units into one business, Building & Industrial Systems (BIS). In July, UTC announced that the head of that business, Geraud Darnis, would retire from the company, effective in January.

Now the new heads of the businesses will report directly to Hayes. The company named Philippe Delpech, who had been chief operating officer of intercontinental operations for BIS, as president of the Otis business.

Robert McDonough was named president of the climate controls and security business, which includes brands such as Carrier air conditioners and Chubb security systems. McDonough had been serving as chief operating officer of the Americas for BIS.

Since taking over in November, Hayes, who previously was UTC's chief financial officer, has shuffled many of the top management ranks.

"No other company we cover has had close to this degree of leadership ‘transition’, and arguably this move may mark a drawing to a close of this period of turmoil," Credit Suisse analyst Julian Mitchell said in a research note.


(Reporting by Lewis Krauskopf in New York and Arunima Banerjee in Bengaluru; Editing by Saumyadeb Chakrabarty and Tom Brown)