NEW YORK (CBS Connecticut and AP) – United Technologies Corp. on Tuesday reported a boost in second-quarter profit on sales gains from key business units while also raising its outlook.
The maker of elevators, jet engines and other products reported a 4.4 percent increase in profit to $1.44 billion, or $1.80 per share. Earnings, adjusted for restructuring costs, came to $1.85 per share.
Meanwhile, revenue for the Farmington, Connecticut company rose 2.7 percent to $15.28 billion.
The results exceeded Wall Street expectations. The average estimate of 10 analysts surveyed by Zacks Investment Research was for earnings of $1.77 per share, while seven analysts surveyed by Zacks expected $15.18 billion in revenue.
The company’s Otis elevator unit reported a 1 percent sales gain to $3.13 billion. The Pratt & Whitney unit, which makes jet engines, reported a 6.7 percent boost in sales to $4.07 billion and the aerospace unit reported a 2 percent decline to $3.64 billion.
Meanwhile, the unit focusing on heating, cooling and fire safety products for buildings reported a 5.7 percent gain to $4.71 billion. That unit includes Carrier Corp., which is in the midst of laying off nearly 340 workers from an Indianapolis factory as it outsources jobs to Mexico. Another 290 workers will be let go by Dec. 22 under a timetable the company announced in late May.
Carrier announced in February 2016 that it would close the Indianapolis plant and cut about 1,400 production jobs in a move expected to save $65 million annually by moving furnace production to Mexico.
President Donald Trump repeatedly criticized Carrier’s Mexico outsourcing plan. Weeks after Trump won the election, Carrier announced an agreement brokered by the president-elect to spare about 800 jobs in Indianapolis, where the company has pledged to keep nearly 1,100 jobs. But some 600 jobs are still being eliminated by the outsourcing.
Looking ahead, United Technologies narrowed its full-year earnings outlook to between $6.45 per share and $6.60 per share, up from a previous low end of $6.30 per share. It expects revenue in the range of $58.5 billion to $59.5 billion, up from a prior range of $57.5 billion to $59 billion.
United Technologies shares have risen 12 percent since the beginning of the year, while the Standard & Poor’s 500 index has risen 10 percent. The stock has risen 17 percent in the last 12 months.
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