United Technologies Raises Outlook -- Update
July 23 2019 - 9:18AM
Dow Jones News
By Dave Sebastian
United Technologies Corp. raised its outlook for the year as
earnings and revenue in the latest quarter beat expectations.
The Farmington, Conn., aerospace company reported second-quarter
net income of $1.9 billion, or $2.20 a share, down from $2 billion,
or $2.56 a share a year earlier.
Analysts polled by FactSet were expecting $1.90 a share in
profit. But adjusted earnings of $2.20 a share were above the $2.05
a share projected by analysts.
Revenue rose to $19.63 billion in the quarter, up from $16.7
billion in the comparable quarter last year, surpassing analysts'
average estimate of $19.55 billion.
Otis, the company's elevator business, generated slightly more
revenue compared with a year earlier, while sales at Carrier, UTC's
buildings-systems business, dropped 1.45% from last year.
Sales at jet-engine manufacturer Pratt & Whitney and Collins
Aerospace both climbed 8.74% and 66%, respectively.
UTC acquired aerospace company Rockwell Collins for $23 billion
late last year to form Collins Aerospace.
Costs and expenses rose to $17.26 billion from $14.77 billion
the same period last year.
The company raised its adjusted earnings projections for 2019 to
$7.90 to $8.05 a share from its previous guidance of $7.80 to $8 a
share. Sales expectations remain the same at $75.5 billion to $77
billion, the company said.
UTC in June struck an all-stock deal to merge with defense
contractor Raytheon Co. after UTC executives chose to exit the
escalator and air-conditioner businesses.
The combined company, valued at more than $100 billion after
planned spinoffs, would be the world's second-largest
aerospace-and-defense company by sales behind Boeing Co., with
annual revenue of about $74 billion this year. It will make
everything from engines and seats for jetliners and F-35 jet
fighters, to Patriot missile launchers and space suits for
astronauts.
The tie-up would complete a radical transformation at UTC, a
once sprawling conglomerate that already plans to spin off its Otis
and Carrier units into separate companies.
Raytheon would be combining with UTC's remaining aerospace
business, and the companies expect the transaction to close in the
first half of next year, after UTC completes the spinoffs.
Shares of UTC gained about 2.3% premarket.
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
July 23, 2019 09:03 ET (13:03 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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