United Tech profit beats on higher demand for aircraft parts

(Reuters) – United Technologies Corp (UTX.N) reported better-than-expected quarterly earnings and raised its full-year sales and profit forecasts on Tuesday, driven by an increase in demand for aircraft parts and spares.

UTC, which makes the Pratt & Whitney aircraft engines and is on track to spin off its Otis elevator and Carrier air conditioner units, is seeking to bolster its defense offering amid rising U.S. government spending.

The company last month announced a $121 billion merger of its aerospace units with weapons maker Raytheon Co (RTN.N), which mainly supplies the U.S. government with military aircraft and missile equipment.

UTC said sales in its Collins aerospace unit, its biggest, surged about 66% percent to $6.58 billion in the second quarter, benefiting from the acquisition of aero parts maker Rockwell Collins. A growing fleet of aircraft also lifted demand for spare parts.

The unit makes engine components, interior and exterior aircraft lighting, landing gear, wheels and brakes.

The company raised its 2019 forecast for adjusted earnings per share to a range of $7.90 to $8.05, from $7.80 to $8.00.

UTC now expects full-year sales, excluding the impact of foreign currency translation and some other items, to rise between 4% and 5%, up from 3% and 5% forecast previously.

Related Coverage

  • UTC sees extra $150 million sales boost from Collins deal

UTC’s net income attributable to shareholders fell to $1.90 billion, or $2.20 per share, in the quarter ended June 30, from $2.05 billion, or $2.56 per share, a year earlier.

The company said net sales rose to $19.63 billion from $16.71 billion.

Analysts on average had expected second-quarter earnings of $2.05 per share and revenue of $19.55 billion, according to IBES data from Refinitiv.

Source: Read Full Article