United Technologies Q2 Profit Declines; Cuts 2015 EPS Outlook - Quick Facts

(RTTNews) - United Technologies Corp. (UTX) reported that its first-quarter net income attributable to common shareowners decreased to $1.5 billion from $1.7 billion, prior year. Earnings per share were $1.73, compared with $1.84. The company noted that its results for the current quarter include favorable one-time items and restructuring charges of $0.08 per share. Excluding items, earnings per share were $1.81.

On average, 16 analysts polled by Thomson Reuters expected the company to report profit per share of $1.71 for the quarter. Analysts' estimates typically exclude special items.

Net Sales were $16.33 billion, compared to $17.19 billion, prior year. Analysts expected revenue of $16.52 billion for the quarter. Sales decreased by 5 percent, reflecting the impact of adverse foreign exchange and absence of the prior year Sikorsky Canadian Maritime Helicopter Program adjustment, which were partially offset by the benefit of organic growth and acquisitions in 2015.

As announced earlier, UTC has reached an agreement to sell Sikorsky to Lockheed Martin for $9 billion, subject to regulatory approvals and customary closing conditions. As a result, Sikorsky will be reported in discontinued operations beginning in the third quarter.

The company now expects full year earnings of $6.45 to $6.60 from operations including Sikorsky, but excluding an expected gain related to its sale. Expectations from continuing operations are now $6.15 to $6.30. This is down from the previous expectations of $6.55 to $6.85 and $6.35 to $6.55, respectively.  Sales expectations from continuing operations have also been revised to $57 billion to $58 billion from the prior expectation of $58 billion to $59 billion. The revised expectations reflect approximately 3 percent organic sales growth.

Analysts now expect full year earnings of $6.85 per share on revenues of $64.73 billion.