(Corrects throughout to read United Technologies instead of United Technology)
By Lewis Krauskopf
Sept 16 (Reuters) - U.S. manufacturer United Technologies Corp is looking for large acquisitions, but does not see a wealth of opportunities with the soaring stock market driving up prices, the company’s chief financial officer said on Tuesday.
“We continue to look for opportunities to do large-scale M&A,” United Technologies Chief Financial Officer Greg Hayes told an investor conference. “At $65 billion (in annual revenue), you have got to do bigger deals to move the needle.”
But when asked how he viewed the deal pipeline, Hayes responded: “Not terribly robust.”
United Technologies’ products fall under two areas: aerospace, including Pratt & Whitney jet engines and Sikorsky helicopters; and commercial buildings, including Otis elevators and Carrier climate control systems.
Hayes’ comments echoed those he gave at United Technologies investor meeting in March, when he said the company was more focused on bigger deals, but did not expect to strike such a deal in the near-term.
Speaking at a Morgan Stanley conference on Tuesday, Hayes said more opportunities existed in the commercial building area than in aerospace, but noted that “equity prices continue to accelerate.”
Hayes said the company was focused on deals that could generate significant cost savings, as occurred with its $16 billion deal for aircraft components maker Goodrich Corp struck a few years ago.
“When you can create value through cost synergies, you can afford to pay some of these multiples that are out there,” Hayes told the conference, which was broadcast over the Internet.
United Technologies said in March it aimed to increase revenue by mid-single-digit percentages annually until 2020, excluding acquisitions. The company is not looking to do deals “just to do deals to grow,” Hayes said.
The CFO said the company also would seek smaller deals involving new technology or to augment Otis’ portfolio.
During his appearance at the conference, Hayes also said doubts emerged after United Technologies
es’ second-quarter report in July over whether the company could increase earnings in 2015.
“We’re certainly going to target earnings growth,” Hayes added. (Reporting by Lewis Krauskopf. Editing by Andre Grenon)