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With regard to $COL acquisition, $UTX still does expect to close the deal sometime in midyear. $UTX is working through the second request with the DOJ right now. $UTX had earlier expected to fund part of the cash aspect of the deal through foreign cash and now the company is going to bring back about $1Bil a year to pay down the debt.
$UTX feels good about EPS growth outlook of $6.85-7.10, with all four business units contributing. As in the prior years, $UTX's earnings growth will be weighted more towards the back half of the year as it gets the benefit of cost reduction efforts. $UTX sees 1Q18 EPS to be basically flat to 2017, on the profile of the commercial businesses.
Operationally, $UTX continued to execute against its growing aerospace backlog. At Pratt & Whitney, $UTX shipped 374 Geared Turbofan engines in 2017, which is in the range of its 350-400 target and nearly triple its 2016 shipments. The company successfully implemented the engine improvements that it promised to customers in 2017.
$UTX announced the transformative $COL acquisition which will create a premier aerospace supplier. As a result of this proposed transaction, together with the investments in the company's businesses and in its digital strategies, $UTX is positioned well for years to come. The company expects all of its businesses to grow sales and earnings in 2018.
$UTX expects FY18 adjusted EPS of $6.85-7.10 and total sales of $62.5-64Bil, which includes organic sales growth of 4-6%. The company predicts free cash flow in the range of $4.5-5.0Bil. In 2018, $UTX expects accelerating organic sales and adjusted EPS growth along with strong cash generation. The outlook excludes proposed $COL acquisition.
$UTX's commercial aftermarket sales for 4Q17 were up 25% at Pratt & Whitney, and up 10% at UTC Aerospace Systems. Otis new equipment orders rose 1% at constant currency, with solid growth in the U.S. and Europe and continued pricing pressure in China. Equipment orders at UTC Climate, Controls & Security increased 9% organically.
$UTX reported a drop in 4Q17 earnings due to charge related to tax law changes and restructuring items. Income from continuing operations fell to $486MM or $0.50 per share from $1.12Bil or $1.26 per share last year. Net sales was $15.7Bil, up 7% over a year ago including 5 points of organic sales growth. Adjusted EPS rose 3% to $1.60.
$PX signed a long-term contract with an electronics manufacturer in Shanghai, China. $PX will build, own and operate multiple air separation plants that will supply high-purity nitrogen & oxygen to EverDisplay Optronics (EDO), the first mass producer of 4.5-generation AMOLED displays in China. EDO will invest more than US$4.1Bil in its new project.
$PX expanded its long-term hydrogen supply agreement with Motiva Enterprises LLC. $PX will increase the amount of hydrogen it supplies to Motiva's about 600,000 barrel per day refinery in Port Arthur, Texas. This agreement secures the additional hydrogen required to support that expansion, as well as the ongoing needs of the refinery.
$LII is reiterating its guidance for 2017 revenue growth of 5-7%, with a 0.5% benefit from FX. GAAP EPS from continuing operations is expected to be $7.67-7.97 while adjusted EPS from continuing operations is expected to be $7.75-8.05. CapEx is expected to be approx. $100MM.