United Tech profit beats on higher aero parts sales
Industrial conglomerate United Technologies reported a better-than-expected fourth-quarter profit on Wednesday and forecast 2019 earnings above estimates, boosted by acquisition of aero parts maker Rockwell Collins.
Shares of United Technologies, which makes Pratt & Whitney aircraft engines, Carrier air conditioners and Otis elevators, were up 4.6 percent at $116.25 in early trading.
The company, which is benefiting from robust demand for aircraft parts on the back of a boom in air travel and record global orders for commercial jets, said in November that it would separate into three companies in 2020.
The separation would leave United Technologies focused almost entirely on aerospace through Rockwell Collins and the Pratt & Whitney businesses which makes engines for Boeing, Airbus and Lockheed Martin.
United Technologies forecast 2019 adjusted earnings per share between $7.70 and $8.00, largely above analysts' average estimate of $7.80, according to IBES data from Refinitiv.
Sales in the Pratt & Whitney unit jumped about 24 percent to $5.54 billion in the fourth quarter ended Dec. 31, while Collins Aerospace reported an increase in sales by about 29 percent to $4.90 billion.
United Technologies' income attributable to shareholders rose to 72.8 percent to $686 million, or 83 cents per share in the reported quarter.
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On an adjusted basis, the company earned $1.95 per share, above Wall Street's estimate of $1.53 per share.
The company said net sales rose 15.1 percent to $18.04 billion beating estimates of $16.91 billion.
(Reporting by Ankit Ajmera in Bengaluru; Editing by Shounak Dasgupta)