United Technologies tops 3Q net income expectations, misses revenue forecasts

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HARTFORD, Connecticut — United Technologies Corp. on Tuesday reported third-quarter profit of $1.85 billion as sales increased across all its businesses and the aerospace giant reported favorable tax settlements.

The Hartford, Connecticut-based company said it had profit of $2.04 per share and earnings, adjusted for non-recurring gains, came to $1.82 per share.

The results topped Wall Street expectations, with the average estimate of analysts surveyed by Zacks Investment Research for earnings at $1.81 per share.

Chief Financial Officer Greg Hayes said on a conference call with investor analysts that aerospace and building systems businesses, such as heating and cooling equipment and elevators, "have good, solid momentum."

And he said he expects the U.S. economy will continue to recover "even in the face of slightly rising interest rates."

Growth in China — where United Technologies' Otis elevator business has a broad presence — will moderate, Hayes said. But it's expected to continue to outpace global economic growth, he said.

Cost reduction also is expected to boost the bottom line, Hayes said.

Hayes said United Technologies is looking for possible acquisitions in commercial businesses such as its building systems divisions. In the aerospace industry, "the pipeline is not terribly full but we continue to spend a lot of time looking at various opportunities," he said.

Prices for prospective acquisitions are still high, despite the recent correction in stock prices, he said.

The company said it expects to increase share repurchases to about $1.5 billion for the year, from $1.35 billion it initially expected.

The maker of elevators, helicopters, jet engines and other products posted revenue of $16.17 billion in the period, which fell short of Street forecasts. Analysts expected $16.21 billion, according to Zacks.

United Technologies expects full-year earnings to be $6.75 to $6.85 per share.

United Technologies shares have declined 11 percent since the beginning of the year, while the Standard & Poor's 500 index has risen 3 percent. The stock has decreased nearly 6 percent in the last 12 months.

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