Diversified U.S. manufacturer United Technologies reported a 13% rise in profit, topping analysts' expectations, as commercial jet operators spent more on maintaining their aircraft.
But the world's largest maker of elevators and air conditioners warned that it saw little pickup in demand for equipment used in large buildings.
"As expected, commercial aerospace after-market orders have rebounded nicely, but the commercial construction markets remain weak," said Louis Chenevert, who became company chairman in January, concluding a four-year handover of power from George David.
Major airlines, which had held maintenance outlays to a bare minimum last year as corporate and leisure travelers stayed home, have been stepping up their pace of engine overhauls this year as passengers return to the skies.
Hartford, Connecticut-based United Tech (NYSE:UTX) said Wednesday it earned $1.2 billion, or $1.30 per diluted share in the third quarter, compared with a profit of $1.06 billion, or $1.14 per diluted share, a year earlier.
Revenue rose 1.1%to $13.5 billion.
Analysts, on average, looked for earnings of $1.28 per share on $13.93 billion in revenue, according to Thomson Reuters I/B/E/S.
The company, which also makes jet engines and Sikorsky helicopters, raised its full-year earnings forecast to $4.70 per share, the top of its most recent forecast range.
That marks the third time this year United Tech has lifted its forecast as emerging market demand has helped its revenue. The effects of its aggressive cost-cutting, which included more than 15,000 job cuts, boosted profit margins.
United Tech in March 2010 closed on its first big acquisition of the Chenevert era - a $1.8 billion takeover of General Electric's security arm.
On Monday, United Tech said it would buy the remaining stake in wind turbine maker Clipper Windpower, of which it had already owned almost half, for $223 million.
So far this year, its stock is up almost 7.4%, slightly outpacing the 6.9% rise of the Dow Jones industrial average, of which it is a component.