United Technologies 2Q17 Earnings Call Notes

Gregory Hayes

China is still a growing market

“So let me just add perhaps the more bullish view on China. It is still a growing market. The GDP there will grow more than 6.5%. Property prices remain strong. The long-term outlook is very good. Look, we’re suffering this year through really the remnants of what were a tough two years where pricing was very, very difficult. But I think to Akhil’s point, it’s encouraging what we’re seeing here in the quarter. And while we won’t see these in actual results play out until early next year, it’s still encouraging to see the Chinese market growing.”

Akhil Jori

Some talk of inflation in Europe

“The other aspect I would say is for Europe service, inflation is starting to at least be talked a little bit, even though at very small levels. But for many years, there was no discussion of inflation at all. And now at least there is some talk about potentially a little bit of inflation coming through, which will ultimately show up in our pricing and will relieve some of the price pressure we have seen in Europe, but still a long way to go, I would say.”

Government can move China much more than other markets

“of all the markets that we play in, China is probably the one where it’s most difficult to call in terms of exactly how it will play out. The government there has abilities to move the markets much more than other markets. And so my crystal ball is not that clear on Otis China.”