(Adds CFO comments, details on results)
By Lewis Krauskopf
April 22 United Technologies Corp
reported a higher-than-expected quarterly profit on Tuesday,
helped by revenue growth across its aerospace and commercial
building segments and strong sales in China.
The diversified manufacturer of elevators, jet engines and
climate control systems, also lifted the low end of its 2014
Excluding divestitures, revenue increased 5 percent and rose
across all five of the business segments at United Tech, a
member of Dow Jones industrials index.
"Sales came in much better than what we expected," United
Tech Chief Financial Officer Greg Hayes said in an interview.
First-quarter net income fell 4 percent to $1.21 billion, or
$1.32 per share. Restructuring costs amounted to 9 cents a share
while a year earlier the company received some one-time
Still, the earnings of $1.32 per share topped the average
analyst estimate by 5 cents, according to Thomson Reuters
"Restructuring and corporate expenses were lower than we had
anticipated, helping to drive the overall EPS 'beat'," RBC
Capital Markets analyst Robert Stallard said in a research note.
Revenue rose 2.4 percent to $14.75 billion, just ahead of
United Tech's businesses that serve buildings, such as Otis
elevators and Carrier air conditioning units, are benefiting
from growth of cities in emerging markets, such as China.
Otis' sales in China rose about 16 percent, while orders
jumped about 25 percent, Hayes said. Sales at Otis increased 5
"Maybe a little bit of a surprise, China continued to be
very strong for us," Hayes said.
Its Sikorsky helicopter division, which has dragged down
United Tech results in recent quarters due to weak U.S. military
spending, saw sales increase 9 percent. While the maker of Black
Hawks saw lower U.S. military shipments, Hayes said that was
offset by international military and commercial sales.
Its Pratt & Whitney jet engine segment, where the company is
launching a newly designed engine for commercial aircraft, saw
sales rise 4 percent, excluding divestitures.
United Tech projected full-year earnings of $6.65 to $6.85
per share, raising the low end from $6.55.
In offering a more bullish 2014 view, the company pointed to
confidence in its full-year sales target of about $64 billion
and to continued cost cuts. United Tech plans to spend $375
million on restructuring this year, up from its previous plan to
spend $300 million.
Through Monday, United Tech shares had climbed 4 percent
this year, ahead of the broader U.S. markets.
(Reporting by Lewis Krauskopf; Editing by Lisa Von Ahn and