"In the quarter, Otis and Carrier reported double digit operating profit growth. Pratt & Whitney and Hamilton Sundstrand military revenues also increased double digits. Of particular note, we completed assembly of the first production configuration F135 engine for the Joint Strike Fighter ahead of schedule during the quarter. Foreign currency translation also boosted results in the quarter," David continued. "Although commercial aviation remains at the low end of the cycle, we did see some improvement in aftermarket volumes from the prior and first quarters."

"Cash flow was again exceptionally strong, exceeding net income even net of the $125 million pension plan contribution and capital expenditures. On the same basis, we now expect cash flow in the range of net income for the year. Exceptionally strong cash flow in part supported UTC's 30% dividend increase in the quarter."

For the first nine months of 2003, UTC reported EPS of $3.53, 5 percent above last year's $3.36. Net income increased to $1.77 billion from $1.70 billion. Cash flow from operations was $2.08 billion and after capital expenditures of $322 million, equaled net income. Revenues for the first three quarters were $22.4 billion, up 7 percent from the same period in 2002.

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 includes "forward looking statements" that are subject to risks and uncertainties. For information identifying economic, political, climatic, currency, regulatory, technological, competitive and some other important factors that could cause actual results to differ materially from those anticipated in the forward looking statements, see UTC's SEC filings as updated from time to time, including, but not limited to, the discussion included in the Business section of UTC's Annual Report on Form 10-K under the headings "General", "Description of Business by Segment" and "Other Matters Relating to the Corporation's Business as a Whole" and the information included in UTC's 10-K and 10-Q reports under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations."