United Technologies Profit Hurt by Tax Charge

By FeaturesDow Jones Newswires

United Technologies Corp.'s revenue rose in its latest quarter as commercial sales in Pratt & Whitney and its aerospace segment strengthened, but charges stemming from the new tax law dented the conglomerate's earnings.

United said Wednesday its fourth-quarter revenue increased 7% from a year ago to $15.7 billion. Analysts polled by Thomson Reuters had expected $14.6 billion.

Continue Reading Below

The company's Otis elevators unit continued to face intense competition in China, which offset growth in the U.S. and Europe. New equipment orders for Otis increased only 1%, while UTC Climate, Controls and Security new orders increased 9%.

Over all for the quarter, United reported a profit of $397 million, or 50 cents a share, compared with $1 billion, or $1.26 a share, a year ago. The difference was primarily due to a charge of 90 cents per share stemming from the new U.S. tax law.

The company expects to make a cumulative net cash payment of $1.5 billion through 2026 related to the new tax law.

Excluding one-time items, the company earned $1.60 a share, up from $1.56 in the year-earlier period. Analysts had expected adjusted earnings per share of $1.51 on net income of $1.2 billion.

The company also set its 2018 outlook, guiding adjusted earnings per share of $6.85 to $7.10, and organic sales growth of 4% to 6%. This guidance excludes the impact of company's proposed acquisition of Rockwell Collins.

Write to Cara Lombardo at cara.lombardo@wsj.com

(END) Dow Jones Newswires

January 24, 2018 07:16 ET (12:16 GMT)

Continue Reading Below