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Elevator Business, Spare Parts Sales Boost UTC Second Quarter Profit

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(Courtesy United Technologies website)

(Courtesy United Technologies website)

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HARTFORD, Conn. (AP) _ United Technologies, citing strong orders at its elevator business in China and for commercial airline parts, posted double-digit percentage increases in profit and revenue for the second quarter Tuesday.

The aerospace and building systems conglomerate is benefiting from its $18.4 billion purchase of Goodrich, and subsidiary Pratt & Whitney’s $1.5 billion deal to buy Rolls-Royce out from a joint venture that makes engines for the Airbus A320. Without the acquisitions, revenue for the quarter would have been flat.

The parent company of helicopter maker Sikorsky Aircraft, Otis elevator and other businesses beat Wall Street estimates, posting net income of $1.56 billion, or $1.70 per share, or $1.69 per share to account for discontinued businesses.

United Technologies fell shy of analyst expectations for revenue, posting sales of $16 billion, up 16 percent from 2012.

Analysts polled by FactSet, on average, expected earnings of $1.58 per share on revenue of $16.37 billion.

CEO Louis Chenevert said strong orders put the company in a good postion for a return to growth, excluding its acquisitions in the second half of 2013.

United Technologies Corp., based in Hartford, Conn., increased its 2013 profit guidance to between $6 and $6.15 per share, from $5.85 to $6.15 previously. It said 2013 sales are expected at $64 billion, which is the lower end of previous guidance of $64 billion to $65 billion.

The company said restructuring costs for 2013 are anticipated to be $450 million, up $100 million from previous projections, but those costs should be offset by one-time items.

New equipment orders at Otis increased 23 percent over the year-ago quarter, led by 39 percent growth in China. Orders for large commercial engine spare parts were up 65 percent at Pratt & Whitney, including the benefit from its Rolls-Royce deal.

Excluding benefits from the Rolls-Royce buyout, commercial spare parts orders rose 15 percent at Pratt & Whitney.

United Technologies says it has completed its business sales. It sold non-core businesses, including industrial products businesses, a wind energy company and its Rocketdyne engine-making segment, to focus on aerospace and building systems and to raise money to help finance the Goodrich purchase.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

United Technologies says its second-quarter revenue and profit spiked on strong elevator business in China and spare part sales for commercial airliners.

The parent company of Pratt & Whitney, Sikorsky Aircraft, and Otis elevator posted net income Tuesday of $1.56 billion, or $1.70 per share, or $1.69 per share to account for discontinued businesses.

Revenue for the April-June period rose 16 percent to $16 billion.

Analysts polled by FactSet, on average, expected earnings of $1.58 per share on revenue of $16.37 billion.

United Technologies Corp.  increased its 2013 profit guidance to between $6 and $6.15 per share, from $5.85 to $6.15 previously.  It said 2013 sales are expected at $64 billion, which is the lower end of previous guidance of $64 billion to $65 billion

 

(© Copyright 2013 The Associated Press. All Rights Reserved.)

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