United Technologies Corp. (NYSE:UTX) cut its outlook for 2015, pointing to the continuing strengthening of the U.S. dollar and added pension discount rate headwinds.
Continue Reading Below
The conglomerate, which also reported slightly higher earnings and sales for its fourth quarter, moved forward its earnings report and conference call from Tuesday morning due to the winter storm in the Northeast.
The company said it now expects earnings of $6.85 to $7.05 a share on sales of $65 billion to $66 billion for the year, down from its earlier view of $7 to $7.20 in earnings and $66 billion to $67 billion in sales.
Shares dropped 2% in after-hours treading.
The results come during a period of upheaval at the industrials company, as it grapples with major leadership changes. Longtime chief executive Louis Chenevert abruptly retired in November amid concerns from directors that he was too disengaged from the details of the conglomerate's operations and too focused on private interests, such as his 110-foot yacht in Taiwan. He was replaced by his longtime deputy, former finance chief Greg Hayes.
Earlier this month, the head of the aerospace division, Alain Bellemare, said he was stepping down at the end of January, leading the computer to eliminate the position entirely. The change will eliminate a management layer between Mr. Hayes and the executives that run the businesses that produced roughly 44% of the company's $63 billion of sales in 2013.
In the most recently ended quarter, new-equipment orders at United's key Otis elevator business increased 12%, excluding foreign exchange fluctuations.
In 2013, United Technologies said it was folding in its Otis elevators segment with its Carrier air-conditioning business, which will become part of the company's building-products division. The move is part of United Technologies' efforts to win a bigger share of new construction projects, especially in emerging markets such as China.
Equipment orders at UTC Climate, Controls & Security business increased 11%. Commercial aftermarket sales dropped 6% for Pratt Whitney and rose 5% for UTC Aerospace Systems during the quarter.
Earlier this year, Alcoa Inc. signed a $1.1 billion deal to provide engine parts to UTC's Pratt Whitney unit as the aluminum company deepens its bet on aerospace sales growth.
Overall, United Technologies reported a profit of $1.47 billion, compared with $1.46 billion a year earlier. Earnings from continuing operations were $1.62 a share, up from $1.58. Sales rose to $17 billion from $16.76 billion a year earlier.
Analysts polled by Thomson Reuters expected a per-share profit of $1.62 and revenue of $17.13 billion.
Shares of United Tech have risen 6.2% in the past 12 months through Monday's close.
Continue Reading Below