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HARTFORD, Conn., October 17, 2006 -– United Technologies Corp. (NYSE:UTX) today reported third quarter 2006 earnings per share of $0.99 and net income of $996 million, up 22 and 21 percent respectively from the year ago quarter. Revenues for the quarter increased 12 percent to $12.2 billion and included 8 percent organic growth. Cash flow from operations was $1.36 billion and, after capital expenditures of $184 million, exceeded net income.

“Third quarter results overall were exceptional and reflect the balance in UTC’s businesses. Commercial aerospace volumes and margins were up significantly at Pratt and Hamilton Sundstrand, along with solid profit growth at UTC Fire & Security and Otis. These gains more than offset weaker market conditions in two of Carrier’s businesses and production challenges at Sikorsky on materially higher volumes,” said UTC Chairman and Chief Executive Officer George David.

“Given results in the quarter and year-to-date, we are increasing UTC’s full year earnings per share guidance to $3.65-$3.69, up 17-18 percent from 2005 results excluding the impact of the FIN 47 accounting change. The prior 2006 guidance range was $3.55-$3.65, up comparably 14-17 percent. We’ll be reviewing our 2007 outlook at our usual December investor meeting and will be looking closely at market developments in Carrier’s North American Residential and container refrigeration businesses in the interim. Both are important contributors to Carrier’s results overall and both markets turned down in the third quarter. However, we still anticipate another solid growth year across UTC in 2007,” David continued.

“Cash flow from operations less capital expenditures in the quarter was 118 percent of net income, and we anticipate this cash flow performance for the year will be at UTC’s usual standard of exceeding net income,” David added.

Share repurchase in the quarter was $580 million and $1.33 billion for the first nine months, on track with guidance of $2.0 billion for the year.

As anticipated by investors, third quarter restructuring costs of $93 million exceeded a $60 million gain on divestiture of a manufacturing joint venture.

The accompanying tables include information integral to assessing the company’s financial position, operating performance, and cash flow.

United Technologies Corp., based in Hartford, Connecticut, is a diversified company that provides a broad range of high technology products and support services to the building systems and aerospace industries.

This release is supplemented by presentation materials that are available on UTC's Web site at www.utc.com, and includes "forward looking statements" concerning expected revenue, earnings, cash flow, share repurchases, restructuring and other matters that are subject to risks and uncertainties. Important factors that could cause actual results to differ materially from those anticipated or implied in forward looking statements include the health of the global economy; strength of end market demand in building construction and in both the commercial and defense segments of the aerospace industry; fluctuation in commodity prices, interest rates, foreign currency exchange rates, and the impact of weather conditions; and company specific items including the availability and impact of acquisitions; the rate and ability to integrate these acquired businesses effectively; the ability to achieve cost reductions at planned levels; challenges in the design, development, production and support of advanced technologies and new products and services; delays and disruption in delivery of materials and services from suppliers; labor disputes; and the outcome of legal proceedings. For information identifying other important economic, political, regulatory, legal, technological, competitive and other uncertainties, see UTC's SEC filings as submitted from time to time, including but not limited to, the information included in UTC's 10-K and 10-Q Reports under the headings "Business", "Risk Factors", "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Cautionary Note Concerning Factors that May Affect Future Results," as well as the information included in UTC's Current Reports on Form 8-K.

View the financial tables in PDF format.