United Tech 2Q EPS Tops Views as Elevator, Engine Orders Rally

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Published July 23, 2013

| FOXBusiness

United Technologies (UTX) revealed stronger-than-expected second-quarter earnings and lifted its full-year guidance on Tuesday amid an influx in orders and tighter costs, however sales trailed estimates. 

The Hartford, Conn.-based maker of building systems like elevators and air conditioners and technologies for the aerospace industry reported net income of $1.6 billion, or $1.70 a share, compared with a year-earlier profit of $1.33 billion, or $1.62 a share.

Excluding one-time items, United Tech said it earned $1.65 a share, topping average analyst estimates of $1.57 in a Thomson Reuters poll.

Revenue for the three-month period climbed 16% to $16 billion from $13.8 billion a year ago thanks in large part to acquisitions like its $16.5 billion purchase last year of Goodrich, but fell short of the Street’s view of $16.37 billion.

Segment sales were driven by improvements in Otis escalator business, Pratt & Whitney, which makes jet engines and Black Hawk helicopters, and UTC Aerospace Systems. United Tech said orders for large commercial engine parts climbed 65% due in large part to Goodrich. 

"We had a solid first half of the year and continued to deliver," United Tech CEO Louis Chenevert said in a statement.

The chief cited restructuring and growing backlogs for the improved fiscal 2013 outlook. United Tech now sees EPS between $6.00 and $6.15 a share, bracketing the consensus view of $6.11 a share.

Shares of United Tech were up about 1% in early trade to $103.13.

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