United Technologies Corp. on Tuesday said revenue rose 5% in its latest quarter, and raised its full-year profit outlook as the industrial conglomerate reported its best quarter of organic growth since 2011.
Pratt & Whitney, the company's aircraft engine business, contributed the largest boost to the company's third-quarter revenue of $15.1 billion.
Continue Reading Below
Sales in United Technologies's aerospace segment, which stands to benefit from a tie-up with Rockwell Collins Inc., declined slightly, though aftermarket sales in both Pratt & Whitney and the aerospace unit increased 11%.
The Farmington, Conn., company now expects adjusted per-share earnings of $6.58 to $6.63, up from $6.45 to $6.60. It also narrowed its revenue outlook to $59 million to $59.5 million from $58.5 million to $59.5 million.
United Technologies shares were down 0.3% in morning trading.
Chief Executive Greg Hayes said in prepared remarks that the proposed $23 billion acquisition of Rockwell Collins would be "transformational" for the company, but stopped short of providing an update on the deal's regulatory approval process.
The deal reached last month would be the largest aerospace deal in history. If approved, it could increase United Technologies's presence as a supplier to Boeing Co. and Airbus SE engines.
Though the deal has to get through several regulators and could face some headwinds in Europe, analysts generally expect it to gain approval because United Technologies and Rockwell make different airplane parts.
People familiar with the situation have told The Wall Street Journal the deal could prompt United Technologies to make changes to its portfolio. United Technologies has said it expects the purchase to close by the third quarter of next year.
Earlier this month, United Technologies hired Judy Marks, chief executive of Siemens AG's U.S. unit, to lead its Otis elevator and escalator manufacturing division. Otis is the smallest of the company's four divisions by revenue, accounting for about 21% of 2016 revenue, and new orders declined 4% in the latest quarter as sales increased 5%.
Overall for the third quarter, United Technologies reported a profit of $1.3 billion, down 8% from a year ago. Earnings were $1.67 a share. Excluding one-time items, the company's adjusted earnings per share were $1.73, compared with $1.76 a year ago. Analysts polled by Thomson Reuters had expected $1.69 a share.
The company recorded a $27 million charge during the quarter for transaction costs related to its work to acquire Rockwell Collins.
Write to Cara Lombardo at email@example.com
(END) Dow Jones Newswires
October 24, 2017 10:40 ET (14:40 GMT)