UTC Reports Revenue Up, But Steep Drop In Fourth-Quarter Profit
By STEPHEN SINGER, AP Business Writer
HARTFORD, Conn. (AP) _ United Technologies Corp. reported a 29 percent drop in fourth-quarter profit on Wednesday due a decline in contributions from businesses that have been sold, but its revenue edged up.
Its earnings nonetheless surpassed Wall Street expectations, and its shares rose in midday trading.
Net income for the Hartford, Conn., aerospace and building systems conglomerate was $1.46 billion, or $1.60 per share, in the September-to-December period. That was down from $2.06 billion, or $2.26 per share in the last quarter of 2012.
United Technologies, which sold off several businesses to help finance its $18.4 billion purchase of aerospace parts maker Goodrich Corp., posted only $14 million in income from discontinued operations in the latest quarter, down from $1.11 billion in the year-ago period.
Revenue rose to $16.8 billion from $16.4 billion a year ago.
Analysts polled by FactSet, on average, expected fourth quarter earnings of $1.53 per share on revenue of $17 billion.
Fourth-quarter revenue rose at all United Technologies’ businesses except helicopter maker Sikorsky, which relies heavily on military contracts that are dwindling as the U.S. winds down operations in Afghanistan. Sikorsky’s revenue dropped 13 percent to $1.9 billion.
For 2013, net income rose 12 percent to $5.72 billion, or $6.25 per share on revenue of $62.63 billion. Sales were up 9 percent from 2012.
Chief Executive Officer Louis Chenevert credited the 2012 purchase of Goodrich and cost-cutting for the increase in earnings.
United Technologies shares rose $1.12 to $116.11 in midday trading Wednesday. They have risen more than 31 percent since a year ago.
(© Copyright 2013 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)