Published April 23, 2013
United Technologies (UTX) said Tuesday its profit soared in the first quarter amid higher sales in its defense and aerospace businesses, but the company missed Wall Street’s estimates.
The maker of Pratt & Whitney aircraft engines and Otis elevators reported a profit of $1.27 billion, or $1.39 a share, well above the $330 million, or 36 cents a share, in the year-ago period that was weighed down by discontinued operations.
Revenue leapt 16% to $14.4 billion.
Analysts expected per-share earnings of $1.29 and revenue of $14.94 billion.
United Technologies has seen its profits climb recently, aided by its $16.5 billion acquisition of aircraft-component maker Goodrich Corp. UTC Aerospace Systems, the company’s new unit comprised of Goodrich businesses and Hamilton Sundstrand, saw its revenue surge to $3.26 billion from $1.24 billion.
Pratt & Whitney’s revenue rose 11%, while Otis posted a 1.6% increase.
United Technologies also backed its full-year outlook, calling for per-share earnings of $5.85 to $6.15 and sales of $64 billion to $65 billion. The company said its strong cash position will allow it to pay down $2 billion of debt this year.
“Macroeconomic indicators coupled with order improvement in our commercial businesses point towards a gradual resumption of organic growth during the course of the year,” Chief Executive Louis Chenevert said in a statement, adding that the company remains focused on cost reduction.
Shares of United Technologies were down 63 cents to $93 in pre-market trading.