United Technologies Sees Sales Growth Ahead Of Break-Up Plan
January 23 2019 - 7:08AM
Dow Jones News
By Micah Maidenberg
United Technologies Corp. said it expects its revenue and profit
to rise this year as the industrial conglomerate works on breaking
itself up.
The company announced last year it will split into three
businesses, leaving United manufacturing engines and parts for the
aerospace industry and the other two companies focused on elevators
or building systems.
In 2019, United Technologies predicts $75.5 billion to $77
billion in sales and $7.70 to $8 a share in adjusted profit. The
Farmington, Conn., company reported $66.5 billion in revenue last
year and a full-year adjusted profit of $7.61 a share.
Shares of United Technologies gained 4% in premarket trading
Wednesday.
The company's aerospace units drove growth at United
Technologies in the fourth quarter. Overall, the company reported
revenue of $18 billion in the quarter, compared with $15.68 billion
a year earlier. Analysts expected $16.82 billion, according to
FactSet.
In November, United Technologies completed its $23 billion
acquisition of airplane-parts maker Rockwell Collins. The company
said sales related to acquisitions in the quarter, including those
from Rockwell Collins, added 4 percentage points of revenue growth
compared with a year earlier.
Revenue at United Technologies's Pratt & Whitney jet-engine
business rose 24% from a year earlier to $5.5 billion while the
unit that includes the former Rockwell Collins aerospace unit
reported a 29% jump in revenue, to $4.9 billion.
Sales in the Otis elevator segment were flat while those in its
Carrier business rose almost 3%.
United Technologies reported a profit of $686 million in the
fourth quarter, or 83 cents a share, compared $397 million, or 50
cents a share, in the year-earlier period. The company's adjusted
profit rose 22% from the year earlier to $1.95 a share, beating the
$1.55 a share analysts polled by FactSet expected.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
January 23, 2019 07:53 ET (12:53 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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