United technologies fills CFO post after management shakeup
By Bloomberg
United Technologies Corp., looking to complete its top management ranks after a departure at the helm last month, brought back longtime executive Akhil Johri to serve as chief financial officer.
Johri, 53, fills the post that was vacated after Gregory Hayes was promoted to chief executive officer following the abrupt resignation of Louis Chenevert. Johri will start in the new role on Jan. 1, the maker of jet engines and air conditioners said today in a statement.
The move adds stability to United Technologies’ management suite in advance of its annual investor meeting Dec. 11. Johri, who joined Pall Corp. last year, held a number of positions during a 26-year career at United Technologies, including in an investor relations capacity and as CFO of the UTC Propulsion & Aerospace Systems business.
“This tells me that Greg wanted a guy that everybody on the street knows, because Greg is going to be too busy doing everything else,” said Nicholas Heymann, an analyst at William Blair & Co., who rates the shares market perform. “Akhil is a good guy and will be very well respected.”
The new management team will be challenged to boost underperforming shares. United Technologies fell 0.7 percent this year through yesterday, trailing the 7.2 percent advance in the Standard & Poor’s 500 Industrials Index. The shares fell 1 percent to $111.90 at 8:37 a.m., before the market opened in New York.
Engine Costs
The Hartford, Connecticut-based company is encountering significant costs in its Pratt & Whitney unit as it boosts production on a major new jet-engine program. The company is also facing falling domestic defense spending in its military businesses and growth challenges in China for the Otis elevator unit.
Chenevert, who served as CEO since 2008, stepped down after the lead independent director raised questions about his focus at the company. United Technologies announced his resignation on Nov. 24.
Hayes may be more willing than his predecessor to consider a major move, including breaking up the company or divesting its Sikorsky helicopter unit, Douglas Harned, an analyst with Sanford C. Bernstein & Co., said yesterday in a report.
“The change in leadership should open up the options for creating shareholder value through shaping the business portfolio,” wrote Harned, who raised his rating of United Technologies to outperform from market perform.
Peter Longo, who was named acting CFO during the recent transition, will return to his prior role as CFO of UTC Propulsion & Aerospace Systems, the company said.