United Technologies Corp. (NASDAQ: UTX) will now be under new management after long-time CEO Louis Chenevert suddenly announced his retirement. Chenevert was the CEO of United Technologies Corp. for the past six years and his sudden departure was unexpected.
Chenevert will be replaced by Chief Financial Officer Gregory Hayes. Edward Kangas on the other hand will take over the chairmanship on the board after Chenevert likewise stepped down.
With the sudden shakeup, United Technologies went down by 1 percent at $109.19. The company is responsible for the manufacturing of Black Hawk military helicopters and is the maker of Pratt & Whitney jet engines and Otis elevators.
The company did not issue an official statement on Chenevert’s decision to retire although the company had been struggling for the past three quarters. Regardless, a company spokesman believes that UTC’s performance did not have any bearing on the six-year CEO’s decision to retire.
This development leaves a lot of things hanging for UTC, including a scheduled briefing to investors and media at the annual investor conference this coming December.
“This has come out of the blue, and as far as we know was not planned,” RBC Capital Markets analyst Robert Stallard wrote in a note.
Incoming CEO Gregory Hayes has served as company CFO for the past six years. Hayes is known for his intense focus on operational execution and cash flow generation, highly regarded as a straight shooter by the company’s investors.
Despite the shakeup, UTC believes that the company can get over this hump as well as the past quarter setbacks in what investors believe is a common setback in the engine development business.