United Technologies Beats Estimates and Reaffirms Expectations
April 27 2016 - 08:40AM
Dow Jones News
United Technologies Corp. on Wednesday said revenue edged up but
profit declined as the company faced currency headwinds and a
challenging global environment.
Still, the company reaffirmed its full-year forecast as results
beat analysts' expectations.
Chief Executive Greg Hayes said despite a "slow-growth global
macro environment" United Technologies was "off to a solid start in
2016."
Mr. Hayes has begun overhauling the Hartford, Conn.-based
conglomerate's portfolio and management. Last summer, 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.
For the quarter, the company reported a profit of $1.19 billion,
or $1.42 a share, down from $1.43 billion, or $1.51 a share, a year
prior. When adjusted for restructuring and other nonrecurring
costs, per-share earnings were $1.47.
Total sales edged up 0.3% to $13.36 billion, with a 2% increase
in organic sales being mostly offset by unfavorable exchange
rates.
Analysts had predicted earnings of $1.39 a share on revenue of
$13.18 billion.
The latest results come almost two months after fellow
industrial giant Honeywell International Inc. withdrew a $90
billion bid to buy United Technologies. Honeywell backed down from
pursuing the massive tie-up after facing opposition from United
Technologies, antitrust regulators and major customers.
Results were mixed in the company's four segments, which all
make up between 20% and 30% of the company's revenue. In the
company's Otis elevator unit, sales fell 1.1% and in the
aerospace-systems segment sales declined 1.2%. Sales in the
climate, controls and security segment decreased 1.2%, which the
company attributes to a good quarter last year.
Commercial aftermarket sales increased, helping boost the Pratt
& Whitney engine segment. Revenue increased 7.7%.
Operating margins decreased across the four segments and the
adjusted segment operating profit margin fell to 15.4% from
16.4%.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
April 27, 2016 08:25 ET (12:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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