2009 was a challenging year for our market-leading franchises. However, UTC’s seasoned leadership team and world class workforce remained focused on what we could control. This allowed us to once again deliver unmatched value to our customers and shareowners.

Across our businesses in 2009, we saw solid execution coupled with strong margin expansion driven by our cost traction. We remained focused on structural cost reduction and process excellence: in our factories, in our supply chain and in our back-office functions. We redeployed capital with discipline, and strengthened our portfolio with key acquisitions and divestitures.

These actions contributed to strong segment operating margin expansion and exceptional cash flow performance as a result of our continued focus on working capital. Once again, free cash flow exceeded net income, and included $1.3 billion in total pension contributions.

Our ACE operating system drove our progress. And, I’m happy to report that, we reached our 2009 goal of having 70 percent of our sites obtain ACE gold or silver levels. This is a tremendous achievement resulting in increased efficiency, lower costs and higher customer satisfaction, across our entire portfolio. We expect to see additional benefits as we continue to expand ACE into our supply base and newly acquired companies.

Turning now to the performance of our business units in 2009.

Hamilton Sundstrand supported successful first flights, for the Airbus A400M transport aircraft, the Boeing P-8A Poseidon and, most notably, the Boeing 787 Dreamliner, with all systems performing as expected. Hamilton stands ready to support entry-into-service for the 787 later this year. In 2009, Hamilton Sundstrand also continued to expand its aftermarket business, securing a number of long-term agreements with key customers and partners.

In December 2009, Pratt & Whitney’s Geared Turbofan engine was selected by Russia’s Irkut to power the MC-21 – a new family of 150- to 210-seat passenger jets. This is the third firm application for the Geared Turbofan engine, along with the Mitsubishi regional jet and Bombardier C Series aircraft. Earlier this year, Republic Airways joined a number of international customers in selecting the Geared Turbofan when it ordered 40 firm and 40 options for additional C-Series aircraft.

Pratt & Whitney also continued to expand its global aftermarket service business in 2009, opening new joint venture engine centers in China and Turkey.

On the military side, the F135 engine, which powers the Joint Strike Fighter, continues to achieve significant performance milestones. Recent achievements include: the first in-flight engagement of the STOVL propulsion system; the first vertical landing; and the delivery of the first three production engines. Later this year, F135 deliveries will ramp-up to two engines a month. We are proud to be partners on the Joint Strike Fighter team - a truly global program - with eight international partner nations in addition to the US Air Force, Navy and Marine Corps.

We are also proud to report that earlier this year, Pratt & Whitney-powered C17’s played a crucial role in the Haitian relief effort – as did Sikorsky’s H-53 and HAWK-series helicopters – transporting rescue teams, equipment and vital relief supplies following the devastating earthquake.

2009 was a record year for Sikorsky. It delivered 244 large aircraft, and achieved record revenue and operating profit. Sikorsky also saw continued success with its U.S. Army BLACK HAWK helicopter fleet, which surpassed one million successful flight hours in Iraq and Afghanistan. Flight testing also continued on the X2 Technology demonstrator, which was recognized by Popular Mechanics, Popular Science and Time Magazine as one of the top technological achievements of 2009. We are very excited about our progress with X2, as it will open up new markets for high-speed helicopters, capable of traveling nearly twice as fast as they do today.

On the commercial side, Otis improved its industry-leading operating margins, with best-in-class products, services, and operating performance. In addition to the design and installation of the elevators and escalators in the world’s tallest skyscraper – the Burj Khalifa in Dubai – Otis also continued to expand its Elite service program to new markets worldwide. This comprehensive priority service is now available in 11 countries. Major new equipment contract wins for Otis in 2009 included the International Finance Centre in Seoul, and World Expo venues in Shanghai.

We accelerated the portfolio transformation at Carrier in 2009, with the acquisition of a number of high-technology solutions and service companies, and the divestiture of non-core businesses. Other 2009 achievements at Carrier reflect the growing demand for energy efficient solutions. They include Carrier’s NORESCO energy services business, which was awarded a $34 million dollar contract to upgrade HVAC and lighting systems at House Office Buildings in Washington, DC. These upgrades are expected to improve energy efficiency by 23 percent. In China, Carrier solutions were chosen for 27 venues at the 2010 World Expo in Shanghai, including three of the five permanent venues.

UTC Fire & Security continued its growth momentum through major project wins and strategic acquisitions, including a significant expansion of its footprint in China with the acquisition of GST – the country's leading fire alarm system provider. The acquisition of GE Security, which closed last month, complements our existing business, adds world-class product lines for our customers, strengthens our North American footprint, and further solidifies UTC Fire & Security’s status as a leader in the $100 billion global fire safety and electronic security industry.

In 2009, UTC Power continued to demonstrate its leadership in developing and producing fuel cells. Its PureMotion power plant – a fuel cell system for hybrid-electric transit buses – set a world record for durability, surpassing 6,500 operating hours this month without cell replacements. In addition, UTC Power’s new 400 kilowatt PureCell fuel cell system has been selected to provide ultra-clean on-site electricity and hot water for Coca-Cola Enterprises’ production facility in Elmsford, New York, as well as for several Whole Foods Markets across the United States.

Last year, United Technologies also entered the high-growth wind power segment, acquiring an interest in Clipper Windpower. This investment allows us to leverage our expertise in blade technology, turbines, and gearbox design. It also builds on our existing portfolio of energy efficient products and power generation systems, meeting the growing demand for cleaner, more efficient solutions.

In addition to our investment in Clipper, we continued to invest in the future, spending $3.6 billion in 2009 on company and customer funded research and development. Our commitment to develop transformative new products and technologies continues to strengthen UTC’s reputation as a global technology leader.

This global technology leadership is seen across our entire portfolio, with the introduction of products that set new standards in energy efficiency – from aircraft engines to elevators to HVAC units to fire detection systems.

For example, Pratt & Whitney's Geared Turbofan engine delivers a 16 percent reduction in fuel burn, significant reduction in emissions, and a 50 percent reduction in engine noise over today’s best in class engines.

For the commercial building industry, United Technologies offers a full range of energy efficient products, including: Otis’ Gen2 elevator, which generates energy during descents; UTC Fire & Security’s HI-FOG fire suppression systems, which uses up to 90 percent less water than traditional fire protection systems; Carrier’s CO2OLtec refrigeration systems, which use natural refrigerants and increase energy efficiency by up to 10 percent; as well as Automated Logic’s integrated building controls, which provide the highest levels of energy efficiency, while ensuring occupant comfort.

Today, buildings account for 40% of energy use and greenhouse gas emissions, more than all the cars, trucks and buses currently on the road. This provides United Technologies, one of the largest suppliers to the global building industry, with tremendous opportunities being explored through integrated building solutions that incorporate leading energy efficient products being made across the company.

To better serve our largest global customers, and to capitalize on the growing demand for energy efficient solutions, United Technologies also established its Integrated Building Solutions team last year.

By 2013, the green building market is expected to double to $100 billion in the US, while more than 20 eco-cities are expected to be built throughout the world in the next 10 years, in places like: Songdo City, South Korea, Lavasa, India; and Tianjin, China. The Integrated Building Solutions team supports UTC’s commercial business units with integrated sales and product development activities in this area, meeting rising demand for green building initiatives.

In addition to focusing on the increasing demand for energy efficient solutions, we have invested talent and resources to capitalize on the growing demand for UTC products and services resulting from rapid urbanization in markets such as India and China.

As China’s urban population has grown in the past, so have UTC’s revenues in this region. In 2000, revenues in China were approximately $600 million, while the urban population was 450 million people. And by 2009, when the urban population in China reached 600 million, UTC’s revenues in China rose sharply to $2.6 billion. This growth trajectory in China’s urban population will continue to benefit United Technologies’ robust infrastructure building portfolio.

We expect to see similar growth in India. Thanks in part to economic reforms that began in the 1990’s, India’s middle class is anticipated to grow by as much as 30 million per year over the next 20 years. This growth will create a fundamental change in the country’s consumer population, as well as generate greater wealth and higher demand for more automated technology, travel, and infrastructure improvements. UTC is well positioned to take advantage of this growing demand.

In 2009, UTC’s revenues in India were $400 million. And given our experience with China – coupled with India’s growth potential – we are very confident that India will provide significant opportunities for years to come.

I’d like to close with a few comments on corporate responsibility at UTC.

At United Technologies, profitability and social responsibility work together, as we operate on the principle that successful businesses improve the human condition.

There is no higher priority at the company than employee safety, and we continuously strive to achieve hazard-free workplaces. Our employees are also expected to live up to the highest ethical standards and business practices – no matter where we do business. Ethics training and appraisals are part of our aggressive compliance program, and there is zero tolerance for anyone who violates the law or United Technologies’ Code of Ethics.

Our company also actively supports communities where our employees live and work. In 2009, UTC contributed $19 million to nonprofit organizations in 39 countries, focusing our efforts on math and science education, the environment, as well as, arts and culture.

UTC also remains a leader in supporting employee development through lifelong learning thanks to the vision of our retired Chairman George David.

The Employee Scholar Program was inaugurated in 1996 and since then has developed into a world-class education program and benchmark for continuous learning. Over the past 13 years, United Technologies has invested almost $900 million in the program, and employees around the world have earned more than 29,000 degrees. Today, more than 15,000 employees are currently enrolled.

On the sustainability front, UTC is a leader in eliminating waste and preserving resources in its own facilities. We have been setting aggressive goals for improved environmental performance for nearly two decades.

Our commitment to sustainability continues to be recognized by third parties. Newsweek ranked UTC one of the greenest companies in America. UTC has been named to the Dow Jones Sustainability Index, and to the Global 100 Most Sustainable Corporations list each year since inception. And Fortune magazine named UTC its "Most Admired" aerospace and defense company for the second consecutive year, and the ninth time in the past ten years.

2009 marked the end of what some have called “The Lost Decade” of investments in the US stock market. This was not the case for UTC. In fact, UTC was one of just two companies in the Dow 30 whose share price more than doubled over the last decade. During this same period, our dividend rate nearly tripled, our revenues went from $25 billion to $53 billion, and our market capitalization grew from $31 billion to $65 billion, an increase of 109 percent. Simply put, even with the challenges we faced in 2009, UTC’s performance over the past decade has been truly remarkable.

I look ahead to 2010 with complete confidence in UTC's ability to continue to outperform peers. United Technologies will continue to set aggressive targets for our performance, and rise to the challenges ahead.

As we begin this new decade, I’m convinced that our world-class workforce, experienced management team, strong balance sheet, unmatched product portfolio and focus on operational excellence will allow us to continue to outperform and deliver superior value to our shareowners.

Thank you very much.