United Technologies (UTX) Doesn't See U.K. Impacting Business Near Term

United Technologies Corp. (NYSE: UTX) today reaffirmed its commitment to doing business in the U.K. and the European Union following this week's referendum vote.

"The process of the U.K.'s withdrawal from the EU will take time and we do not believe it will impact our businesses in the near term, said UTC President and Chief Executive Officer Gregory Hayes. "UTC remains committed to our businesses and their more than 8,000 employees in the U.K."

"We are hopeful that the separation process will be carried out in a manner that minimizes disruption and economic impact, Hayes said. "We believe that the current benefits of a free and open trading zone will largely remain at the conclusion of this process. As a globally diversified company, we are well equipped to manage these types of uncertainties."

The company, whose 2015 sales in the U.K. were approximately $2 billion and represented less than 4 percent of overall sales, also reaffirmed its 2016 outlook for adjusted EPS of $6.30 to $6.60 on sales of $56 billion to $58 billion and organic sales growth of 1 percent to 3 percent.

United Technologies Corp., based in Farmington, Connecticut, provides high-technology systems and services to the building and aerospace industries. For more information about the company, visit our website at www.utc.com or follow us on Twitter: @UTC.

Use of Non-GAAP Financial Measures

Expected adjusted EPS is a non-GAAP financial measure. Adjusted EPS reflects continuing operations, excluding restructuring costs and other significant items of a non-recurring and/or non-operational nature. Management believes adjusted EPS is useful in providing period to period comparisons of the results of the Company's operational performance.

Expected organic sales growth is also a non-GAAP financial measure. Organic sales represents the total reported increase within the Company's ongoing businesses less the impact of foreign currency translation, acquisitions and divestitures completed in the preceding twelve months and significant non-recurring and non-operational items.

When we provide our expectations for adjusted EPS and organic sales growth on a forward-looking basis, the closest corresponding GAAP measure (expected EPS from continuing operations and sales growth) and a reconciliation of the differences between the non-GAAP expectation and the corresponding GAAP measure generally is not available without unreasonable effort due to potentially high variability, complexity and low visibility as to items that would be excluded from the GAAP measure in the relevant future period. The variability of the excluded items may have a significant, and potentially unpredictable, impact on our future GAAP results.

Adjusted measures should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP. Other companies may calculate adjusted measures differently than the Company does, limiting the usefulness of these measures for comparisons with such other companies.

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