Fresh off announcing a $9 billion sale of its Sikorsky Aircraft division, United Technologies Corp. [UTX] on July 21 posted lower sales and earnings in its second quarter and the company lowered its guidance for the year due to softened expectations for its commercial aerospace and the people-moving division of its building systems business.

Net income fell 8 percent to $1.5 billion, $1.73 earnings per share (EPS), from $1.7 billion ($1.84 EPS) a year ago, topping consensus by two cents per share. The results were negatively affected by unfavorable one-time items, restructuring charges and foreign currency valuations due to the strong dollar.

Sales were down 5 percent to $16.3 billion versus $17.2 billion a year ago. A benefit related to a Canadian marine helicopter program a year ago that wasn’t repeated in recent quarter combined with adverse foreign currency impacts to dent sales, more than offsetting 3 percent of organic growth and another percent from acquisitions.

Excluding Sikorsky, which is being reported as discontinued operations beginning in the third quarter, the company lowered its earnings guidance to between $6.15 to $6.30 EPS versus the prior outlook of $6.35 to $6.55 EPS. The sales forecast was lowered by $1 billion to between $57 billion and $58 billion.

Gregory Hayes, UTC’s president and CEO, said on the company’s earnings call that it is an “understatement” to say he’s disappointed in the results and reduced earnings outlook for the year.

The pending sale of Sikorsky to Lockheed Martin [LMT] marks the end of big divestitures by UTC, Hayes said. The company plans to aggressively pursue acquisitions to help propel future growth although share repurchases are still expected, particularly if deals can’t be had, he said.

UTC has refocused its business on building systems in global markets and aerospace systems for commercial and military markets.

The lower earnings and sales outlook stems from a change in expectations in the aerospace systems and Otis division. For aerospace, where the company was forecasting growth in the commercial and military aftermarkets and a level environment in original equipment manufacturing for defense customers, it now expects lower sales and $300 million less profit.

At Otis, which makes elevators and escalators, the company is expecting lower than expected sales in China, Asia, and Europe, the Middle East and Africa. UTC is forecasting $200 million less profit at Otis than previously expected.

At its Pratt & Whitney aircraft engine division, UTC posted a 2 percent increase in sales to $3.7 billion due mainly a double-digit increase in military engine deliveries and to a lesser extent higher commercial aftermarket business. Commercial engine deliveries were down. Operating profit, adjusted for restructuring costs and other one-time items, fell 6 percent to $489 million.

Sales at UTC Aerospace Systems were flat at $3.6 billion despite organic growth of 2 percent. Military-related sales in the segment were down. Segment operating profit was down 4 percent to $580 million due to less favorable product mix and pension headwinds.

Sales at Sikorsky were up 9 percent to $1.7 billion and adjusted operating profit was $188 million, up 26 percent on higher sales and the absence of unfavorable contract performance adjustments a year ago for the Canadian helicopter program.

Free cash flow in the quarter was $1.2 billion, about 76 percent of net income. UTC still expects free cash flow to approximate 90 to 100 percent of net income this year.