United Technologies ended 3Q10 with cash and cash equivalents of $5.73 billion versus $4.44 billion at the end of FY09. Long-term debt was $10.0 billion versus $8.3 billion at the end of FY09. The debt to total capitalization increased to 36% at the end of 3Q10 from 32% at the end of FY09.

Free cash flow in 3Q10 was very strong at 125% of net income attributable to common shareowners.

Share repurchase was $494 million in the quarter and $1.6 billion year to date. Acquisition expenditure was $183 million in the quarter and $2.6 billion year to date.

Dividend

On October 13, 2010, UTX declared a dividend of 42.5 cents per common share paid on December 10 to shareowners of record at the close of business Nov. 19.

• Weakness in Commercial Aerospace:  Extended weakness in commercial aerospace is hurting related businesses.

• Federal Budget:  Federal budget deficits could put pressure on the defense budget in the near term, and limit demand for military shipments.

• Currency:  Currency translation gains remain uncertain.

• Interest Rates:  Rising interest rates could reduce residential construction in the U.S., and slow the overall global economic growth.

• Commodity Prices:  Rising commodity prices, particularly copper and steel, would adversely affect earnings of the Company.

• Market Condition:  Market conditions in Carrier’s North American residential business appear challenging.

• Strong competitors:  UTX competes in several industrial and commercial sectors, as well as some consumer/residential sectors, with well-capitalized global companies.