United Technologies 4th Quarter Meets Wall Street Expectations
By STEPHEN SINGER, AP Business Writer
HARTFORD, Conn. (AP) _ United Technologies Corp. posted a 26 percent drop in fourth-quarter net income from continuing operations on Wednesday due to costs for restructuring, completing its $18.4 billion Goodrich acquisition and other one-time items.
But the Hartford, Conn., conglomerate’s huge bet on the aerospace business is paying off, and it posted strong revenue gains for its jet engine maker Pratt & Whitney and UTC Aerospace Systems.
CEO Louis Chenevert called 2012 a “transformational year” for United Technologies with the purchase of Goodrich and a $1.5 billion deal by Pratt & Whitney to buy out Rolls-Royce from a joint venture that makes engines for the Airbus A320.
“We closed the year better than we had anticipated,” he said.
Net income from continuing operations was $945 million, or $1.04 per share, meeting Wall Street expectations for the October-December quarter. When including the impact from discontinued operations, profit came to $2.06 billion.
United Technologies has been selling energy and industrial products businesses that it doesn’t deem essential to future growth to help finance the Goodrich purchase.
Acquisitions helped lift revenue 14 percent to $16.44 billion, short of the $16.65 billion prediction of analysts polled by FactSet.
New equipment orders rose at the Otis elevator unit, driven by demand from China, but the segment’s revenue dropped slightly. United Technologies said sales were strong in the heating and cooling equipment division in an improving North American market, but overall, that division’s revenue also fell.
Sales more than doubled at UTC Aerospace Systems and also rose at Pratt & Whitney and Sikorsky Aircraft, which manufactures helicopters.
For the year, net income was $5.13 billion, including discontinued operations. Profit from continuing operations was $4.85 billion. Revenue came to $57.71 billion.
The company maintained its 2013 guidance of profit between $5.85 and $6.15 per share on revenue of $64 billion to $65 billion.
That’s still roughly in line with what analysts expect: Earnings of $6.05 per share on revenue of $65.02 billion.
Shares rose 43 cents to $87.90 in premarket trading. Over the past 12 months, the stock has gained 14 percent.
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