Business

October 24, 2012

United Technologies third quarter profit, revenue up

United Technologies Corp. posted higher third-quarter net income and revenue Oct. 23 on rising orders in key businesses, but said it expects the U.S. economic recovery to remain anemic and offered a gloomy assessment of business in Europe.

The parent company of Otis Elevator, jet engine maker Pratt & Whitney, Sikorsky helicopter, Carrier heating and cooling and other aerospace and building system businesses said orders were up for Otis, heating and cooling equipment in North America and airline spare parts.

But United Technologies shaved its revenue outlook for the year due to what it said is a weak recovery in commercial aerospace parts maintenance and repair and uncertainty in the global economy.

It also increased its restructuring effort to brace for what it called a “challenging economic environment.”

The Hartford, Conn.,-based company reported net income available to common shareholders of $1.42 billion, or $1.56 per share, for the three months ended Sept. 30. That’s up 7.5 percent from $1.32 billion, or $1.47 per share, a year ago.

Earnings from continuing operations came to $1.37 per share. Analysts surveyed by FactSet expected $1.19 per share.

Revenue rose almost 6 percent of $15.04 billion from $14.2 billion a year ago. Analysts expected $15.6 billion in revenue.

United Technologies said it expects 2012 revenue of $58 billion, the low end of its previous outlook. Analysts expected $58.4 billion. It also is increasing its 2012 restructuring costs to $600 million from $500 million.

The conglomerate closed on its biggest deal in July, an $18.4 billion purchase of aerospace parts maker Goodrich Corp. in Charlotte, N.C. It said its third-quarter profit would have been lower than last year’s comparable period when accounting for $168 million in discontinued operations related to several companies it’s selling to help finance the Goodrich purchase.

Accounting for companies it set aside for sale such as industrial companies of aerospace manufacturing subsidiary Hamilton Sundstrand, United Technologies said earnings fell to $1.25 billion from $1.29 billion in the July-September period last year.

The acquisition of Goodrich and a separate $1.5 billion purchase by Pratt & Whitney of Rolls-Royce’ stake in a joint venture that makes engines for the Airbus A320 will reduce earnings per share by 10 cents, down from a previous estimate of 20 cents.

Analyst Rick Whittington of Drexel Hamilton said the earnings results were “fine under the circumstances” that include slow economic growth.

United Technologies, with its Goodrich acquisition, should capitalize on improving airline parts repair and maintenance business and new engine orders, he said.

“To me that’s the new United Technologies, an aerospace company, not a diversified industrial business,” Whittington said.

Airbus said in August it plans to double the $12 billion it spends with U.S. suppliers in response to strong airplane sales. And Boeing is aiming to speed up 787 production to 10 planes a month by the end of next year and plans to deliver planes it has built and need reworking.

Chief Financial Officer Greg Hayes told analysts on a conference call that United Technologies expects “solid growth” next year in commercial airline manufacturing and maintenance and repair, residential heating and cooling systems and U.S. commercial construction.

But the company expects business in Europe to be flat in 2013 and anticipates declines in U.S. military spending to continue even without an estimated $50 billion in defense cuts known as “sequestration” scheduled for January unless Congress agrees on an alternate deficit reduction plan.

 




All of this week's top headlines to your email every Friday.


 
 

 

Northrop Grumman awarded mission support services contract

The U.S. Army awarded Northrop Grumman a cost-plus-fixed-fee contract, with a potential value of $205 million, to continue providing mission logistics services in support of combat brigades training at the National Training Center in Fort Irwin, Calif. The contract covers one base year and two one-year options. Support will include the full range of mission...
 
 

Lockheed Martin completes operational flight tests of GMLRS alternative warhead

DALLAS, July 28, 2014 /PRNewswire/ –†Lockheed Martin has successfully completed all Developmental Test/Operational Test flight tests for the new Guided Multiple Launch Rocket System Alternative Warhead at White Sands Missile Range, N.M. The DT/OT tests included rockets fired at both mid and long range. All rockets were fired from a High Mobility Artillery Rocket System...
 
 
lm-kmax

Lockheed Martin’s unmanned cargo helicopter team returns from deployment

After lifting more than 4.5 million pounds of cargo and conducting thousands of delivery missions for the U.S. Marine Corps, the Lockheed Martin and Kaman Aerospace Corporation K-MAX cargo unmanned aircraft system has returned ...
 

 

SPEEA files age discrimination charge against Boeing

After months of investigation, the Society of Professional Engineering Employees in Aerospace, IFPTE Local 2001, charged Boeing with age discrimination. Acting on behalf of SPEEA-represented engineers, the union filed the third-party charges July 23 with the Equal Employment Opportunity Commission and the Washington State Human Rights Commission. The evidence is overwhelming that Boeing hatched...
 
 

Commercial jets push Boeing profits up 52 percent

Increased production of passenger jets helped push up Boeing’s profit by 52 percent in the second quarter, topping Wall Street’s expectations. The Chicago-based company said net income increased to $1.65 billion, or $2.24 per share, from $1.09 billion, or $1.41 per share, in the same quarter a year ago. Earnings, adjusted for non-recurring costs, came...
 
 

Comprehensive MEADS network tests demonstrate unmatched plug-and-fight missile defense capabilities

The Medium Extended Air Defense System recently completed a comprehensive system demonstration at Pratica di Mare Air Base near Rome, Italy. The two-week test demonstration included significant first-time events that were observed by several national delegations. “The outstanding result is that we have demonstrated the full range of advanced network capabilities that only MEADS can...
 




0 Comments


Be the first to comment!


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>