the nature of united technologies /  pratt & whitney  The airline industry and other commercial markets entered 2002 in painfully slow lockstep with  sluggish world economies. UTC’s commercial companies – Otis, Carrier and UTC Fuel Cells – moved aggressively to overcome market weakness and by year-end sold nearly $11 billion combined in Carrier heating, air conditioning and refrigeration products; Otis elevators and escalators; and fuel cell systems. Aerospace divisions Pratt & Whitney, Hamilton Sundstrand and Sikorsky all found greener pastures in government sales. Pratt & Whitney won a $406 million U.S. Defense Department contract in January to continue building engines for Lockheed Martin’s F/A-22 Raptor, the world’s only stealth fighter jet designed to cruise at supersonic speed without use of an afterburner. The F/A-22 program could generate in excess of $10 billion over its lifetime for Pratt & Whitney and more than $620 million for Hamilton Sundstrand, which will supply electric power generation systems, engine controls and fuel pumps. The U.S. Air Force plans to activate the first operational F/A-22s in 2005, and last September certified Pratt’s F119-PW-100 engine for service. Sikorsky and its partner Boeing restructured the Comanche™ stealth helicopter program and won an additional $3.4 billion in Pentagon-approved funding for the next phase of the futuristic aircraft’s development. The U.S. Army currently expects to buy 650 Comanche helicopters worth $27 billion, with full production scheduled to begin in 2009. Last March, Sikorsky opened a facility in Bridgeport, Connecticut, for first-phase assembly. The Pentagon also earmarked $640 million for Sikorsky to build 34 of its mainstay Hawk family helicopters. The company last year delivered nine Black Hawk® helicopters to Austria’s Federal Ministry of Defense, the 25$^{th}$international customer for the rugged aircraft. Continued development of the Joint Strike Fighter (JSF) was assured in October when President George Bush signed the U.S. defense budget. Pratt & Whitney was awarded the prestigious Collier Trophy in May for its team leadership role in JSF engine development, which is continuing under a $4.8 billion contract extending to 2012. Hamilton Sundstrand will supply $700 million worth of electrical system, engine control, gearbox and nozzle actuation development work through 2007 and will provide hardware and services for all JSF aircraft built, which could number 6,000 over the program’s life. Both Pratt & Whitney and Hamilton Sundstrand have potentially large contracts in the offing as the result of the U.S. Air Force awarding Boeing a $9.7 billion, five-year deal to build 60 C-17 transport planes. Each is powered by four Pratt & Whitney F117-200 engines. The company antici- pates receiving a total of $2 billion in Boeing contracts. The F117 engine is a military version of the PW2000 engine, which has a 20-year track record as the most fuel-efficient in its thrust class. Pratt & Whitney delivered its 500 th F117 engine in December. 6 united technologies corporation It was a year when markets were soft and UTC was bedrock.