United Technologies Q3 Profit Climbs, Backs Full Year View

(RTTNews) - Diversified conglomerate United Technologies Corp. (UTX) Tuesday said third-quarter profit increased from the prior year as sales improved and topped estimates, driven by organic growth. Further, the company backed its full year expectations.

Net income attributable to common shareowners increased to $1.854 billion from $1.432 billion in the previous year.

Earnings from continuing operations attributable to shareholders increased to $2.04 from $1.55.

The latest results include $0.22 per share of favorable one-time items net of restructuring costs, while the prior-year results included $0.08 of restructuring costs and one-time items.

Excluding items in both quarters, earnings per share increased 12 percent year over year. On average, 20 analysts polled by Thomson Reuters expected earnings of $1.81 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales grew to $16.168 billion from $15.462 billion. Analysts expected revenues of $16.16 billion.

Louis Chênevert, UTC Chairman & CEO, said, "UTC delivered another quarter of solid performance. Along with strong margin expansion and a fifth consecutive quarter of organic sales growth, we've seen increased demand for our integrated building solutions and revenue synergy opportunities for our Building & Industrial Systems businesses."

For Otis, which makes elevators, net sales advanced 4 percent to $3.326 billion, and new equipment orders rose 4 percent at constant currency.

At UTC Climate, Controls & Security, sales grew less than 3 percent to $4.351 billion. Equipment orders were 5 percent higher excluding early order activity ahead of next year's SEER-14 standard change.

Jet engine manufacturer Pratt & Whitney's sales improved 5 percent to $3.564 billion, and large commercial engine spares orders advanced 1 percent.

UTC Aerospace Systems' revenues improved close to 7 percent to $3.535 billion, and commercial spares orders increased 11 percent from last year.

At Sikorsky aircraft, sales were $1.620 billion, compared to $1.541 billion last year.

Further, the firm said it remains on track to deliver on its expectations for the year. "Our solid backlog and organic growth trends continue to give us confidence in our earnings per share range of $6.75 to $6.85, on sales of about $65 billion," Chênevert added.

Wall Street looks for earnings of $6.84 per share on revenues of $65.26 billion.

UTX closed marginally lower on Monday at $101.48.