2Q net income at United Technologies Corp rises
24 Jul 2013
Second-quarter net income at United Technologies Corp, the world's largest maker of elevators and air conditioners, stood higher, buoyed mostly by its 2012 buyout of aircraft parts manufacturer Goodrich.
The company, which is also into manufacture of Pratt & Whitney jet engines and Black Hawk helicopters, reported $1.56 billion net income, or $1.70 per share, as against $1.33 billion, or $1.62 per share, a year earlier.
Revenue was up 16 per cent to $16 billion.
With the results, United Tech has lifted the low end of its 2013 earnings guidance, expecting to earn at least $6 to $6.15 as against the previous projection of $5.85 to $6.15 per share.
For the recent quarter, profit included a net five cents of favorable special items, as against the previous year figure which included a net gain of four cents. Continuing operations earnings were up to $1.70 from $1.62.
According to analysts, chief executive Louis Chenevert's efforts to shift the company's focus on aviation were boosting profit and sales, with the company attracting more business following the $16.5 billion acquisition of Goodrich Corp.
In addition to Pratt & Whitney aircraft engines, the company also makes Otis elevators and Carrier air-conditioning systems. Revenue at the company increased 16 per cent after it benefited from acquisitions. Organic sales, which generally do not include acquisitions, divestitures and currency impacts, were flat.
New equipment orders at Otis surged 23 per cent from the previous year, boosted by 39 per cent growth in China, while the climate, controls and security unit saw a 6 per cent rise in orders. Pratt & Whitney's Orders for large commercial engine spares shot 65 per cent at Pratt & Whitney.
