Business

July 24, 2013

United Tech posts big second quarter profit, revenue gains

Stephen Singer
Associated Press

United Technologies, citing strong orders at its elevator business in China and for commercial airline parts, posted double-digit percentage increases in profit and revenue for the second quarter Tuesday.

The aerospace and building systems conglomerate is benefiting from its $18.4 billion purchase of Goodrich, and subsidiary Pratt & Whitney’s $1.5 billion deal to buy Rolls-Royce out from a joint venture that makes engines for the Airbus A320. Without the acquisitions, revenue for the quarter would have been flat.

The parent company of helicopter maker Sikorsky Aircraft, Otis elevator and other businesses beat Wall Street estimates, posting net income of $1.56 billion, or $1.70 per share, or $1.69 per share to account for discontinued businesses.

United Technologies, based in Hartford, Conn., fell shy of analyst expectations for revenue, posting sales of $16 billion, up 16 percent from 2012.

Analysts polled by FactSet, on average, expected earnings of $1.58 per share on revenue of $16.37 billion.

CEO Louis Chenevert said strong orders put the company in a good position for a return to growth, excluding its acquisitions in the second half of 2013.

New equipment orders at Otis increased 23 percent over the year-ago quarter, led by 39 percent growth in China.

Orders for large commercial engine spare parts were up 65 percent at Pratt & Whitney, including the benefit from its Rolls-Royce buyout. Excluding benefits from the Rolls-Royce deal, commercial spare parts orders rose 15 percent at Pratt & Whitney.

Chief Financial Officer Greg Hayes told analysts on a conference call that estimates of about 5 percent growth in spare parts sales are “probably more like flattish,” though the company is looking forward to momentum in orders.

There are 575 workers who are taking retirement offers at Pratt & Whitney, and that is expected to boost profitability at the engine maker, he said. With the winding down of U.S. operations in Afghanistan, military engine sales are ìcoming down significantly.

ìThis is a tough year at Pratt,î Hayes said.

Edward Jones analyst Christian Mayes said analysts have been waiting some time for orders of engine parts to increase.

There’s some healing going on in that market, he said.

In addition, Otis elevator performed well in China, despite a sluggish economy, he said.

United Technologies, which announced it will boost restructuring costs for 2013 to $450 million, up $100 million from previous projections, can find areas to cut and make other changes at its acquisitions, Mayes said. They have more room to go on that,î he said.

United Technologies said the restructuring costs should be offset by one-time items.

It also said it has completed its business sales. It sold non-core businesses, including industrial products businesses, a wind energy company and its Rocketdyne engine-making segment, to focus on aerospace and building systems and to raise money to help finance the Goodrich purchase.




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


 
 

 

Headlines September 11, 2014

News: Obama ready to strike at Islamic State militants in Syria, he tells policy experts - President Obama is prepared to use U.S. military airstrikes in Syria as part of an expanded campaign to defeat the Islamic State and does not believe he needs formal congressional approval to take that action, according to people who have...
 
 

News Briefs September 11, 2014

U.S. airstrikes in Iraq hit Islamic State vehicles The U.S. military says it launched five more airstrikes in support of Iraqi government troops and Sunni tribesmen protecting the Haditha Dam against fighters of the Islamic State group that controls parts of northern and western Iraq. Central Command says that a combination of U.S. attack, fighter...
 
 
boeing-india

Boeing delivers fifth P-8I maritime patrol aircraft to India

  Boeing delivered the fifth P-8I maritime patrol aircraft to India, on schedule, Sept. 9 as part of a contract for eight aircraft to support the Indian Navy’s maritime patrol requirements. The aircraft arrived at Naval ...
 

 

Raytheon receives $109 million contract for Patriot Air and Missile Defense System

Raytheon Comp received a $109 million Engineering Services contract for its Patriot Air and Missile Defense System. The contract, issued by the U.S. Army Aviation and Missile Command, Redstone Arsenal, Ala., is for ongoing technical support and services to the U.S. Army and Foreign Military Sale customers to ensure readiness of their Patriot systems. “Customers...
 
 
boeing-satellite

Boeing receives first order for 502 Phoenix small satellite

EL SEGUNDO, Calif. – Boeing has received its first commercial order for the 502 Phoenix small satellite from HySpecIQ of Washington, D.C. The satellites will carry the commercial remote sensing industry’s first high...
 
 

Northrop Grumman to develop active electronically scanned array technology

Northrop Grumman has been selected by the Defense Advanced Research Projects Agency to develop and demonstrate advanced wideband digital antenna technology for next generation radio frequency sensors using active electronically scanned arrays. The DARPA Microsystems Technology Office awarded Northrop Grumman an $11.9 million contract for phase one of the Arrays on Commercial Timescales (ACT) pr...
 




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>