United Technologies [UTX] on Tuesday posted lower sales and earnings in the third quarter across its operating segments due to impacts from adverse foreign exchange, lower organic revenue and restructuring costs.

UTC President and CEO Gregory Hayes. Photo: UTC
UTC President and CEO Gregory Hayes. Photo: UTC

The multi-industrial company also said the sale of its Sikorsky Aircraft division to Lockheed Martin [LMT] is expected to close during the fourth quarter and announced a new $12 billion share repurchase program that includes $6 billion for accelerated buybacks using the net proceeds from the Sikorsky deal.

Sales fell 6 percent in the quarter to $13.8 billion from $14.6 billion with 5 percent of the decline due to foreign exchange impacts and 1 percent to a dip in organic revenue. UTC attributed the organic decline to a delay in aircraft engine deliveries due to the transition to a new logistics center at its Pratt & Whitney division.

Deliveries of military and commercial aircraft engines were all down significantly at Pratt.

Excluding Sikorsky, earnings from continuing operations tumbled 19 percent to $1.4 billion, $1.61 earnings per share (EPS), from $1.8 billion ($1.93 EPS), still topping consensus estimates of $1.56. Restructuring costs clipped six cents from results and foreign currency a nickel while a year ago results benefited from 22 cents of one-time items excluding restructuring.

With the new share repurchase authorization, UTC expects to buy back at least $16 billion of its stock from 2015 through 2017.

Gregory Hayes, UTC’s president and CEO, said on the company’s earnings call that “we’re going to keep driving the share repurchase agenda as long as we feel that there’s a significant discount between the intrinsic value of UTC and the share price.”

Hayes also said that without Sikorsky, the organic profile for UTC brightens as does its outlook for margins and cash flow. He also said the company’s exposure to the defense market will drop from 19 percent to 13 percent with Sikorsky divested.

Free cash flow in the quarter was $631 million.

UTC maintained its guidance for 2015 with sales between $57 billion and $58 billion and per share earnings from continuing operations between $6.15 to $6.30.