United Technologies Shuts One Unit, Will Sell Others

United Technologies Corp. said Thursday that it has closed its Mostek semiconductor subsidiary and plans to sell its telecommunications businesses, moves that it said will result in an after-tax loss of $423.7 million and eliminate 4,600 jobs.

Harry S. Gray, UTC’s chairman and chief executive, said the termination of Mostek and sale of the telecommunications businesses “are difficult and unpleasant but absolutely essential to end the drain on our earnings.”

Analysts who follow the conglomerate praised the move as a necessary step to stem persistent losses. The company said Mostek lost $116.5 million in the third quarter and $328.2 million in the first nine months of the year, while its telecommunications company lost $19.9 million in the quarter and $61.5 million for the nine months.

United Technologies also owns Pratt & Whitney, which makes aircraft engines; Carrier Corp., which makes air conditioners; Otis elevators; Sikorsky helicopters, and several other units.

Mostek’s electronics expertise was valuable to several of the United Technologies high-technology businesses, according to Value Line Investment Survey.

United Technologies, Connecticut’s largest employer, reported a third-quarter net loss of $45.6 million, including the charge for the elimination of the two businesses, compared to net income of $192.7 million in the same period a year ago.

The company said, however, that its continuing operations were profitable in the quarter with net income of $147.5 million.