TECHNOLOGY XTRA discuss information about United Tech posts 8 percent profit rise, gives rosier outlook
United Technologies Corp posted an 8 percent increase in quarterly profit, topping estimates, as sales of its elevators and aircraft parts helped offset a sluggish performance in its Pratt & Whitney engine business.
The maker of Sikorsky helicopters and Otis elevators said second-quarter net income rose to $1.68 billion, or $1.84 per share, from $1.56 billion, or $1.71 per share, a year earlier. Revenue rose 7 percent to $17.19 billion. United Tech posted organic revenue growth of 3 percent, which excludes sales from a helicopter agreement with Canada and net divestitures.
"Although EPS was a beat in the quarter, we think results on an underlying basis were essentially in-line, with restructuring and one time charges/gains...clouding expectations," RBC Capital Markets analyst Robert Stallard said in a research note.
Spare part orders at United Tech's aerospace components unit, UTC Aerospace Systems, jumped 28 percent, but spare commercial engine orders dropped 6 percent at Pratt & Whitney. Sales at Pratt edged down 0.9 percent to $3.59 billion.
While sales at Otis rose 7 percent, new equipment orders increased only 3 percent. Analysts have been concerned that a potential slowdown in building in China could hamper United Tech's sales of elevators and other products for commercial buildings, such as climate-control and security systems. "The Otis number suggests significant slowing in China," JPMorgan analyst Joseph Nadol said in a note.
United Tech projected 2014 earnings of $6.75 to $6.85 per share, raising the low end from $6.65. The company said it now expected less than $1 billion in acquisitions for 2014, after previously projecting about $1 billion in deals. Shares of United Tech rose 0.6 percent to $113.65 in premarket trading. Through Monday, the stock had fallen 0.7 percent this year, compared with a nearly 3 percent rise for the Dow Jones industrials index.
Thank you to read the article "profit rise United Tech 8 percent, gives rosier outlook" after my last update, entitled "The company's shares are up 17 percent by Apple rebound" on my blog.
United Technologies Corp posted an 8 percent increase in quarterly profit, topping estimates, as sales of its elevators and aircraft parts helped offset a sluggish performance in its Pratt & Whitney engine business.
The maker of Sikorsky helicopters and Otis elevators said second-quarter net income rose to $1.68 billion, or $1.84 per share, from $1.56 billion, or $1.71 per share, a year earlier. Revenue rose 7 percent to $17.19 billion. United Tech posted organic revenue growth of 3 percent, which excludes sales from a helicopter agreement with Canada and net divestitures.
"Although EPS was a beat in the quarter, we think results on an underlying basis were essentially in-line, with restructuring and one time charges/gains...clouding expectations," RBC Capital Markets analyst Robert Stallard said in a research note.
While sales at Otis rose 7 percent, new equipment orders increased only 3 percent. Analysts have been concerned that a potential slowdown in building in China could hamper United Tech's sales of elevators and other products for commercial buildings, such as climate-control and security systems. "The Otis number suggests significant slowing in China," JPMorgan analyst Joseph Nadol said in a note.
United Tech projected 2014 earnings of $6.75 to $6.85 per share, raising the low end from $6.65. The company said it now expected less than $1 billion in acquisitions for 2014, after previously projecting about $1 billion in deals. Shares of United Tech rose 0.6 percent to $113.65 in premarket trading. Through Monday, the stock had fallen 0.7 percent this year, compared with a nearly 3 percent rise for the Dow Jones industrials index.
Thank you to read the article "profit rise United Tech 8 percent, gives rosier outlook" after my last update, entitled "The company's shares are up 17 percent by Apple rebound" on my blog.
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