United Technologies Q3 Profit Drops, Backs FY View; To Buy Back $12 Bln Stock

(RTTNews) - Diversified conglomerate United Technologies Corp. (UTX) Tuesday said its third-quarter profit declined from the previous year, as sales dropped from the prior year.

The company said it is on track to deliver results within its previous guidance ranges for full-year earnings per share of $6.15 to $6.30 and sales between $57 billion and $58 billion.

On average, 20 analysts polled by Thomson Reuters expect earnings per share of $6.21 per share for the quarter. Analysts' estimates typically exclude special items.

Analysts look for full-year sales of $57.62 billion.

UTC expects the previously announced sale of its Sikorsky unit to close in the fourth quarter of 2015. The Board of Directors has authorized a new $12 billion share repurchase program, including the $6 billion accelerated share repurchase using the net proceeds from the Sikorsky sale.

The new share repurchase program replaces the previous program announced on July 20.

Gregory Hayes, UTC President and CEO, said, "United Technologies is executing the strategic plan set forth earlier this year and is focused on maximizing the performance of our core building and aerospace systems businesses under a flatter and more transparent organizational structure.

During the quarter, Otis new equipment orders increased 2 percent at constant currency, while Equipment orders at UTC Climate, Controls & Security decreased 2 percent.

Net income attributable to common shareowners dropped to $1.362 billion from $1.854 billion reported last year.

Earnings per share from continuing operations were $1.61, compared to $1.93 last year. The latest results included restructuring costs of $0.06 per share, while last year's results included $0.22 of favorable one-time items net of restructuring.

Excluding these items in both quarters, earnings per share of $1.67 decreased 2 percent from the prior year. Analysts expected earnings of $1.55 per share.

Net sales declined to $13.79 billion from $14.61 billion last year, driven by 5 points of adverse foreign exchange and a 1 point decline in organic sales primarily due to a delay in engine deliveries as a result of the transition to a new logistics center at Pratt & Whitney. Analysts expected revenues of $14.56 billion.

Commercial aerospace aftermarket sales were up 8 percent at Pratt & Whitney and up 1 percent at UTC Aerospace Systems on an organic basis.

UTX closed down 1 percent on Monday at $92.05.