United Technologies Revenue Climbs
July 26 2016 - 8:20AM
Dow Jones News
United Technologies Corp. boosted the lower end of its full-year
sales and revenue forecasts Tuesday as the company said revenue
climbed in its latest quarter, though profit fell.
It now expects adjusted earnings per share of between $6.45 and
$6.60, increasing the low end from $6.30. It expects revenue of $57
billion to $58 billion, up from $56 billion to $58 billion
previously.
For the quarter, the company reported a profit of $1.37 billion,
down from $1.54 billion in the prior year. On a per-share basis,
earnings rose as the number of shares outstanding fell 6%. Earnings
per share rose to $1.71 from $1.64. When adjusted for restructuring
and other nonrecurring costs, per-share earnings were $1.82.
Total sales rose 1.3% to $14.87 billion, with a 1% increase in
organic sales and a 1% increase in sales from acquisitions being
partially offset by unfavorable exchange rates.
Analysts had predicted earnings of $1.68 a share on revenue of
$14.67 billion.
In March, fellow industrial giant Honeywell International Inc.
withdrew a $90 billion bid to buy United Technologies after facing
opposition from United Technologies, antitrust regulators and major
customers.
Before the acquisition attempt, Chief Executive Greg Hayes began
overhauling the Hartford, Conn.-based conglomerate's portfolio and
management. Last year, United Technologies sold its Sikorsky
helicopter unit to Lockheed Martin Corp. for $9 billion. In
December, the company laid out a three-year, $1.5 billion
cost-cutting plan that takes aim at "high-cost" locations with an
eye to consolidate manufacturing facilities.
Results were mixed in the company's four segments, which all
make up between 20% and 30% of its revenue.
In the company's Otis elevator unit, sales were essentially flat
to $3.1 billion as 2% organic growth was offset by currency
fluctuations. In the aerospace-systems segment sales grew 2.3%.
Sales in the climate, controls and security segment increased
0.1% as an organic revenue decline was offset by an
acquisition-driven gain.
Commercial aftermarket sales jumped 20% in the Pratt &
Whitney segment, boosting its revenue 3.7%.
The overall segment operating profit margin fell to 16% from
16.9% as operating margins declined for Otis, Pratt & Whitney
and aerospace systems.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
July 26, 2016 09:05 ET (13:05 GMT)
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