United Tech beats revenue estimates, forecasts higher 2018 profit

IndustriesReuters

U.S. manufacturer United Technologies Corp reported better-than-expected fourth-quarter revenue on Wednesday and forecast higher profit for the full year, benefiting from higher sales of parts and maintenance for commercial jets.

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The maker of Otis Elevators and Pratt & Whitney aircraft engines said it expected 2018 adjusted earnings in the range of $6.85 to $7.10 per share, up 3 percent to 6.8 percent from a year earlier.

The company forecast 2018 sales of $62.5 billion to $64.0 billion, slightly above the mid-point of analysts' average estimate of $63.08 billion, according to Thomson Reuters I/B/E/S.

Net sales for the fourth quarter rose to $15.68 billion from $14.66 billion a year earlier, topping Wall Street's expectation of $15.40 billion.

United Technologies is spending more money to speed up production of its fuel saving GTF engines that power Airbus' newest narrow-body jet, the A320neo, and Bombardier's CSeries aircraft.

The company's income from continuing operations attributable to common share owners fell to $397 million, or 50 cents per share in the fourth quarter ended Dec. 31, from $1.01 billion, or $1.26 per share, a year earlier.

The latest quarter included a 90-cent charge related to changes in the U.S. tax law. On an adjusted basis, United Tech earned $1.60 per share.

Net sales rose to $15.68 billion from $14.66 billion a year earlier.

Analysts on average had expected quarterly earnings of $1.56 per share and revenue of $15.40 billion.

(Reporting by Ankit Ajmera in Bengaluru; Editing by Martina D'Couto and Saumyadeb Chakrabarty)

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