United Technologies Corp. [UTX] on Tuesday posted strong earnings in its first quarter on operating profit gains at its building controls, climate and security segment and its businesses that make jet engines for aircraft, and helicopters.
Photo: Sikorsky
The company’s sales dipped one percent to $14.5 billion from $14.7 billion a year ago due to the impacts of foreign current rates while organic revenue climbed 3 percent. Net income increased 18 percent to $1.4 billion, $1.58 earnings per share (EPS), from $1.2 billion ($1.32 EPS) a year ago, and beats analysts estimates by six cents EPS.
UTC’s Sikorsky helicopter segment, which is being considered for divestment, saw sales decline 7 percent to $1.2 billion on fewer shipments of military and commercial aircraft. Sikorsky’s operating profits, including restructuring and other one-time costs that hampered results a year ago, increased 7 percent to $92 million. Excluding the restructuring and other costs, adjusted operating profits fell 11 percent on the lower sales and headwind from a Canadian maritime helicopter program.
“We had a good start to the year, despite headwinds from a stronger U.S. dollar,” Greg Hayes, the company’s president and CEO, said in a statement. “Although commercial aerospace aftermarket growth was slower in the quarter than we anticipate for the year, the commercial building business in the U.S. is looking better and I’m encouraged by the signs of growth that we’re seeing in Europe.”
Sales at the Pratt & Whitney aircraft engine business were flat at $3.3 billion while operating profits increased 8 percent to $419 million. UTC Aerospace Systems sales were up 3 percent to $3.5 billion while operating profits fell 4 percent to $569 million.
Sales and earnings guidance for the year is unchanged.