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HARTFORD, Conn., October 17, 2007 –- United Technologies Corp. (NYSE:UTX) today reported third quarter 2007 earnings per share of $1.21 and net income of $1.20 billion, up 22 percent and 20 percent, respectively, over the year ago quarter. Revenues for the quarter increased 14 percent to $13.9 billion and included 9 percent organic growth. Foreign currency translation and acquisitions accounted for the remainder of the revenue growth. Cash flow from operations was $1.38 billion and capital expenditures were $238 million.

The quarter included a $0.04 per share benefit of net tax related items in excess of restructuring costs while the year ago period included net costs of $0.02 per share as a result of restructuring in excess of one time gains. Excluding restructuring/gains in both periods, earnings per share grew 16 percent year over year. UTC expects recently enacted international tax law changes to negatively impact the fourth quarter tax rate and offset the $0.04 per share third quarter benefit.

“This was another solid quarter for UTC. Notably, organic revenue growth came in at 9 percent, following 10 percent growth in each of the first two quarters of 2007. In addition, five of our six business segments grew profits at double digit rates as markets in general remain healthy and cost reductions continue. While market conditions in Carrier’s North American residential business are clearly challenging, its other three global businesses delivered double digit earnings growth,” said UTC Chairman and Chief Executive Officer George David. “As we close in on the year, we now see EPS in the range of $4.22 - $4.25, or 14 percent growth and at the top end of our prior range of $4.15 - $4.25. Given the organic revenue growth year to date and current backlogs, we now expect revenues for the year in the range of $54 billion, up from our previous outlook of $53 billion. Momentum in the businesses is good, with the most recent evidence being the selection of Pratt & Whitney’s Geared Turbofan engine for the Mitsubishi Regional Jet. As usual, we’ll be reviewing the 2008 outlook at our December investor meeting and anticipate delivering another solid outlook then,” David said.

“Cash flow from operations less capital expenditures in the quarter was solid, even with the inventory challenges we face as a result of another quarter of strong organic revenue growth. We continue to target cash flow performance for the year in the range of net income,” David added.

Share repurchase in the quarter was $500 million and $1.5 billion for the first nine months, on track with guidance of $2.0 billion for the year.

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 website 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. These statements often contain words such as “expect”, “anticipate”, “plan”, “estimate”, “believe”, “will”, “see”, “guidance” and similar terms. 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 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 effectively integrate these acquired businesses; 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. The level of share repurchases may vary depending on the level of other investing activities. 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.