United Technologies Raises Profit Outlook -- update
October 22 2019 - 8:03AM
Dow Jones News
By Dave Sebastian
United Technologies Corp. raised its profit outlook for the year
as it recorded higher quarterly earnings and revenue.
For the full year, the Farmington, Conn., aerospace company now
expects adjusted per-share earnings to be between $8.05 and $8.15,
up from its previous outlook of $7.90 to $8.05. United Technologies
narrowed its sales outlook to between $76 billion and $76.5
billion, compared with its prior guidance of $75.5 billion to $77
billion. It said it continues to expect organic sales to grow 4% to
5% for the full year.
Shares of United Technologies are up 1.1% in premarket trading
Tuesday.
The company posted adjusted earnings of $2.21 a share in the
third quarter, up 14.5% from the same quarter last year and
surpassing the $2.03 a share analysts polled by FactSet had
expected.
Net income totaled $1.15 billion, or $1.33 a share, compared
with $1.24 billion, or $1.54 a share, in earnings a year
earlier.
United Technologies said it incurred 73 cents per share of
charges related to the separation of its Otis elevator and Carrier
air-conditioner businesses.
Revenue for the quarter was $19.5 billion, up from $16.51
billion in the comparable quarter last year. Analysts were
expecting $19.33 billion in sales. Sales in the Otis and Carrier
businesses for the quarter were $3.3 billion and $4.8 billion,
respectively.
Costs and expenses rose to $17.05 billion from $14.8 billion in
the comparable quarter last year.
Shareholders earlier this month approved the $135 billion
combination of United Technologies and Raytheon Co., which would
create one of the world's largest aerospace companies. The
companies expect the deal to close in the first half of 2020,
subject to regulatory approval.
The Raytheon merger is the second piece of the industrial
conglomerate's ambitious restructuring that will split it into
three companies by the middle of next year. It closed its $23
billion acquisition of aircraft-parts maker Rockwell Collins almost
a year ago, creating an aerospace division that will form the core
of the new company after the Raytheon deal closes.
Raytheon Technologies, as the enlarged company will be known,
aims to counter the challenges with the breadth of its offerings.
Its Pratt & Whitney engines power Airbus jetliners, Lockheed
Martin F-35 combat aircraft and the Boeing KC-46 tanker. Raytheon
is focused on fast-growing areas such as hypersonic missiles and
laser weapons and defenses.
The combined company would make everything from engines and
seats for jetliners and F-35 jet fighters, to Patriot missile
launchers and space suits for astronauts.
(END) Dow Jones Newswires
October 22, 2019 07:48 ET (11:48 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
United Technologies (NYSE:UTX)
Historical Stock Chart
From Mar 2024 to Apr 2024
United Technologies (NYSE:UTX)
Historical Stock Chart
From Apr 2023 to Apr 2024