We like our business balance and diversity across the world and across products. Fifty-six percent of our revenues arise outside the United States. Fifty-seven percent are to commercial and industrial markets and only 22 percent to commercial aviation markets. Twenty-one percent are to the U.S. and other governments worldwide (mostly for military aerospace), and these revenues have grown more than 30 percent since 2000. Forty-two percent are to aftermarkets, unusually high among all industrial companies. The result is record performance even with the most challenging commercial aviation market ever. 

Performance and balance are why our results are consistently favorable to peers and to market averages. We anticipate continuing both and see lots of runway ahead. This company knows how to reduce costs and improve productivity. 

Pratt & Whitney was honored in 2002 with the Collier Trophy, aerospace’s most prestigious award worldwide, for leading the Joint Strike Fighter Vertical Lift-Fan Propulsion System team. This was the ninth such recognition for a UTC company over the Collier’s 90-year span. Hamilton Sundstrand and two of its European subsidiaries won added content for the Airbus A380 aircraft, including cabin pressure control, throttle control and the emergency electrical generating system. Engine wins for the same aircraft continue for Pratt & Whitney, with its joint venture with General Electric accounting for about half of all propulsion systems to date. In December, Sikorsky certified with the Federal Aviation Administration its new 19-passenger S-92™ helicopter, the first helicopter ever designed to the FAA’s new and exceptionally rigorous Part 29 safety standards. 

Carrier launched its new WeatherMaker® 8000 furnace, 17 percent smaller in cubic volume and more than half reduced in noise from the prior model. The furnace also can be configured for 60 percent more applications, enabling distributors to stock 40 percent fewer models. Carrier already leads this important North American market. In December, Nissan unveiled its X-TRAIL FCV, a sports utility vehicle powered by UTC Fuel Cells’ cell stack and associated equipment. UTC’s fuel cell design, alone among competitors, operates at ambient pressure. We believe this approach offers material performance advantages and may become the system of choice for fuel cell vehicle propulsion globally. 

George David Chairman and Chief Executive Officer 

Steve Page Vice Chairman and Chief Financial Officer 

