Earnings Watch -- WSJ
July 27 2016 - 3:04AM
Dow Jones News
UNITED TECHNOLOGIES
Otis and Pratt Make Progress
United Technologies Corp. reported higher quarterly sales as the
conglomerate makes progress righting its elevator unit and ramping
jet engine production to historically high levels.
Net sales rose 1.3% to $14.87 billion, with a 1% increase in
organic sales, prompting the company to boost the lower end of its
full-year revenue forecast and raise its adjusted earnings per
share expectation.
The strong quarter comes in a tumultuous period for United
Technologies. Chief Executive Gregory Hayes warded off a $90
billion takeover bid from rival Honeywell International Inc.
earlier in the year. That attempt came amid Mr. Hayes's struggle to
revive growth at Otis, the legacy elevator and escalator maker. At
the same time, Pratt & Whitney is overhauling its manufacturing
operation.
Profit for the period fell to $1.37 billion, down 11% from the
prior year. The company raised its guidance for adjusted earnings
per share of between $6.45 and $6.60, increasing the low end from
$6.30.
It expects revenue of $57 billion to $58 billion, up from $56
billion to $58 billion previously.
--Ted Mann and Austen Hufford
AK STEEL HOLDING
Quarterly Profit Reverses Loss
AK Steel Holding Corp. swung to a second-quarter profit as the
steelmaker reduced its exposure to spot prices and focused on more
profitable coated products.
The West Chester, Ohio, company's shipments declined 14% to
roughly 1.55 million tons for the latest quarter, compared with
1.81 million tons a year earlier. Selling prices per ton improved
2.8% to $957 a ton, compared with $931 a ton a year earlier.
U.S. steelmakers have been starting to benefit from U.S. tariffs
on steel imports.
Over all, AK Steel reported a profit of $17.3 million, or 8
cents a share, compared with a year-earlier loss of $64 million, or
36 cents a share.
The latest period included a tax benefit of $106 million.
Revenue decreased 12% to $1.49 billion, mostly owing to lower
automotive contract pricing as well as a decrease in shipments.
Analysts polled by Thomson Reuters expected per-share loss of 2
cents and revenue of $1.53 billion.
--Tess Stynes
(END) Dow Jones Newswires
July 27, 2016 02:49 ET (06:49 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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