United Technologies Corp., parent company of jet engine manufacturer Pratt & Whitney and the maker of Otis elevators, said Wednesday its fourth quarter profit fell 6 percent, weighed down by lower revenue and restructuring costs.
Most of United Technologies' businesses struggled in the recession. Aerospace customers of Pratt & Whitney and Hamilton Sundstrand were hurt by the downturn in the aviation industry, Otis elevator was affected by China's faltering economy and Carrier's heating and ventilating equipment was dealt a setback early in the weakened housing market.
CEO Louis Chenevert said United Technologies benefited from a "relentless focus on costs across the business."
The company earned $1.07 billion, or $1.15 per share, in the last three months of 2009, down from $1.15 billion, or $1.23 per share, a year ago.
The latest results include $135 million, or 8 cents a share, in previously-disclosed restucturing charges for the fourth quarter.
Analysts expected the Hartford company to earn $1.14 per share, according to a survey by Thomson Reuters.
Revenue fell to $14.1 billion from $14.7 billion a year ago. That was in line with analysts' expectations.
For the full year, the company based in Hartford said it earned $3.83 billion, or $4.12 per share, down 18 percent from 2008. Annual revenue fell 11 percent to $52.92 billion from $59.76 billion in 2008.
Otis, helicopter maker Sikorsky Aircraft and United Technologies' fire and security business increased operating profit in the fourth quarter over the same quarter in 2008. But for the full year, Sikorsky was the only business with higher profit over 2008 due to rising military demand as the U.S. fights two wars.
"Year over year order rates have remained stable, although at low levels, and we saw increases in some Asian economies, notably China," Chenevert said.
United Technologies reaffirmed its 2010 earnings forecast. Order rates will pressure revenue, particularly in the first half of 2010, Chenevert said. However, benefits from cost-cutting will lead to earnings growth of 7 percent to 13 percent with 2010 earnings per share of $4.40 to $4.65.
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