Published October 23, 2012
United Technologies (UTX) posted stronger third-quarter sales on Tuesday but lowered its fiscal 2012 revenue outlook on weak demand from airplane companies, defense cuts and economic uncertainty.
Including restructuring costs, earnings per share fell 6% from 2011.
Adjusted for special items, though, the Hartford, Ct.-based maker of building systems, including elevators and air conditioners, as well as jet engines and BlackHawk helicopters reported net income of $1.2 billion, or $1.39 a share.
The non-GAAP earnings widely beat average analyst estimates of $1.18 in a Thomson Reuters poll.
The company reaffirmed its 2012 EPS outlook of $5.25 to $5.35 a share, bracketing the consensus' $5.30, but lowered its fiscal 2012 sales outlook to $58 billion, narrowly below estimates.
United Technologies cited the lack of recovery in the commercial aerospace aftermarket and global uncertainty for the bearish sales projection and said it would ramp up cost-cutting measures in the current quarter as it struggles to offset defense cuts that have dampened sales of Blackhawk helicopters and other products used by the military.
The company, which in July closed its acquisition of Goodrich and struck a deal to control half of an engine joint venture, said revenue for the three months ended Sept. 30 climbed 6% to $15.04 billion from $14.24 billion last year, narrowly missing the Street’s view of $15.51 billion.
Shares of United Technologies fell by less than 1% on Friday to $77.50, though they are up about 6.6% from the beginning of this year.