United Technologies (NYSE:UTX) reported a 1.2% improvement in its third-quarter profit, driven by stronger Otis and aerospace sales.
Continue Reading Below
The maker of Pratt & Whitney aircraft engines and Black Hawk helicopters also raised the low end of its forecast for per-share earnings by 10 cents, calling for a profit of $6.10 to $6.15 a share. But United Tech lowered its revenue view by $1 billion to $63 billion, citing weakness in military aerospace markets and the European economy.
United Tech logged a profit of $1.43 billion, or $1.57 a share, just ahead of the year-ago period’s $1.42 billion, or $1.56 a share.
The third quarter included restructuring costs of eight cents a share, while favorable items boosted earnings last year. Earnings from continuing operations climbed to $1.55 a share in the latest period, up from $1.37 a share.
Revenue edged 2.8% higher to $15.46 billion. Organic sales, which strip out acquisitions, sales and currency impacts, were up 1%.
United Tech’s profit beat Wall Street expectations of $1.54 a share, while revenue fell short of a $16.18 billion estimate.
The Hartford, Conn.-based company saw new equipment orders at its Otis elevator segment rise 4%, while orders grew 13% at its climate, controls and security business.
Otis sales were up 4.4%. UTC Aerospace Systems, which includes aircraft component maker Goodrich, posted sales growth of 24%. Revenue at Pratt & Whitney fell 5.3%, while sales at the climate, controls and security business slipped 0.5%.
United Tech noted it plans to record $500 million in restructuring costs for 2013, although those expenses should continue to be offset by one-time items.
Shares were down nearly 1% at $106.68 in pre-market trading Tuesday. The stock has rallied 31% so far this year.