UTC 2Q Profit Surges 19 Percent
By STEPHEN SINGER, AP Business Writer
HARTFORD, Conn. (AP) – United Technologies Corp. posted a 19 percent jump in its second-quarter profit on Wednesday, citing strong orders for its heating and cooling building systems and exports that got a lift from a weaker dollar.
The results from the Hartford company that owns Carrier heating and cooling, Otis elevator, jet engine manufacturer Pratt & Whitney and other businesses beat Wall Street estimates.
The company also raised its outlook for the full year.
Its shares rose $1.28, or 1.4 percent to $90.10 in premarket trading.
Chief Executive Louis Chenevert said in a statement that he was particularly pleased that orders are strong at the commercial construction segments, which points to future strength because the work is planned years in advance.
“More encouragingly, order rates remain strong and in line with expectations across most of the segments including our longer cycle commercial construction-related businesses,” he said.
The company reported its net income rose to $1.32 billion, or $1.45 per share, for the April-June quarter, from $1.11 billion, or $1.20 a share, a year ago.
It was the sixth consecutive quarter of double-digit profit increases.
Revenue rose 9 percent to $15.08 billion from $13.8 billion a year ago. Orders increased at Otis, Pratt & Whitney and aerospace parts maker Hamilton Sundstrand.
Analysts expected earnings of $1.41 a share on revenue of $14.61 billion
United Technologies raised its 2011 outlook to between $5.35 per share and $5.45, up from $5.25 to $5.40. It also raised its revenue estimate for the year to $58 billion from $57 billion.
Analysts expected full-year earnings of $5.43 a share on revenue of $57.7 billion.
Each of United Technologies’ six businesses reported revenue gains in the latest quarter, with Otis at the head, posting a 12 percent rise to $3.19 billion.
Commercial spare part orders at Pratt & Whitney’s large engine business grew 23 percent and orders rose at Hamilton Sundstrand by 25 percent.
New equipment orders at Otis were up 23 percent, which included favorable foreign exchange of 8 percentage points. Commercial equipment orders at Carrier grew 13 percent, including favorable foreign exchange of 4 points.
When the U.S. currency is weaker, revenue that companies get in foreign currencies translates into more dollars. About 60 percent of United Technologies’ $54.3 billion in revenue last year was from sales outside the United States.
(Copyright 2011 by The Associated Press. All Rights Reserved.)