Tags: United | Tech | Raises | Forecast | Profit | earnings

United Tech Raises Forecast as Profit Jumps 17 Percent

Wednesday, 20 Apr 2011 08:35 AM

United Technologies Corp. said Wednesday its first-quarter profit jumped 17 percent as revenue rose and orders climbed for the industrial conglomerate's elevator, aerospace and heating and cooling businesses.

The results beat Wall Street expectations and the Hartford-based manufacturer of jet engines, helicopters and other aerospace and building systems also raised its 2011 profit guidance.

Its shares rose $2.34, or 2.8 percent, to $84.70 in pre-market trading.

United Technologies has been benefiting from rising demand for airline parts and the improving commercial and real estate markets.

Net income rose to $1.01 billion, or $1.11 per share, for the three months ended March 31, up from $866 million, or 93 cents per share, a year ago.

The latest results reflected 2 cents a share in restructuring costs and would have been $1.13 without that impact. Analysts expected adjusted earnings of $1.07 a share.

Revenue rose 11 percent to $13.3 billion from $12 billion a year ago. Analysts expected $12.8 billion.

United Technologies raised its guidance for the year to between $5.25 and $5.40 per share from $5.20 to $5.35 per share. Analysts had expected $5.36 a share.

Chief Executive Officer Louis Chenevert credited the stronger global economy for strength in United Technologies' markets. The company says it expects 2011 revenue to be $57 billion, the high end of its previous guidance in December of $56 billion to $57 billion. Analysts expected revenue of $57.2 billion.

United Technologies posted strong revenue gains in most of its businesses. Revenue at jet engine maker Pratt & Whitney was $3.1 billion, up about 9 percent, and Carrier heating and cooling was up 12 percent to $2.77 billion for the quarter. Sikorsky Aircraft, which makes helicopters used by the U.S. military in Afghanistan, posted revenue for the quarter of $1.58 billion, up nearly 17 percent from the first quarter of 2010.

Gains were already seen late last year and earlier in 2011. United Technologies last month raised the lower end of its profit guidance for 2011, saying businesses such as elevators, commercial plane spare parts and heating and air conditioning systems are doing well in the economic recovery.

In its 2010 fourth quarter, United Technologies said stronger results from Carrier and its airline commercial spare parts business for Pratt & Whitney helped boost profit.

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United Technologies Corp. said Wednesday its first-quarter profit jumped 17 percent as revenue rose and orders climbed for the industrial conglomerate's elevator, aerospace and heating and cooling businesses. The results beat Wall Street expectations and the Hartford-based...
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Wednesday, 20 Apr 2011 08:35 AM
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