Perform. Be there first. Develop markets.

Innovate. Wow the customer. Be a good citizen. Acquire.

Partner. Learn. Take risks. This is how we grow.

Stakes in the Ground. Financial performance is a perennial for UTC. With seven consecutive years of 18 percent or better earnings growth, our cumulative return to shareholders in that time has reached 436 percent, compared with a 139 percent average for our peer industry group and 213 percent for the Dow Jones Industrials. Our earnings per share have risen an average 22 percent annually over the last seven years, from 83 cents in 1993 to $3.55 in 2000 and, during the same period, our business units have posted a 100 percent increase in their segment profit-to-revenue ratios. Last year we added another 18 percent in earnings, up from $3.01 in 1999. Our $1.8 billion in available cash flow also provides the engine of growth for acquisitions.

     We continue to reap the benefits of prior actions. When completed, the 1999 restructuring program will eliminate $750 million in annual costs. We have also reduced annual purchasing costs by $900 million in the last three years and are on track to eliminate almost eight million square feet of extra factory space.

     UTC’s product and global diversity are advantages that can differentiate us from others if the U.S. economy softens and the stock market retreats, or if foreign currencies falter. Last year, for example, despite a weak euro, we delivered our 30th straight quarter of double-digit earnings growth (excluding restructuring).