United Tech 3Q profit up 11 pct, raises forecast
HARTFORD, Conn. (AP) — HARTFORD, Conn. (AP) — United Technologies Corp. said Wednesday that its third-quarter profit jumped nearly 11 percent as orders increased significantly at several of its aerospace and building systems businesses. The manufacturing conglomerate raised its 2011 profit forecast for the third time this year.
The Hartford, Conn., company, which makes jet engines, elevators and other aerospace and building systems components, said net income was $1.32 billion, or $1.47 per share, for the quarter ended Sept. 30. That's up from $1.20 billion, or $1.30 per share, in the third quarter of 2010.
Revenue rose 9 percent to $14.8 billion from $13.62 billion.
Analysts polled by FactSet had expected earnings per share of $1.44 on revenue of $14.55 billion.
For the second time in as many quarters, United Technologies raised its 2011 profit guidance, to $5.47 per share, up from $5.35 to $5.45 previously. It maintained its 2011 revenue guidance of $58 billion.
New equipment orders at elevator manufacturer Otis rose 19 percent from a year ago, 11 percent for heating and cooling equipment orders at Carrier and 24 percent at aerospace parts maker Hamilton Sundstrand.
It was the seventh consecutive quarter of double-digit percent growth in profit, with three of its businesses — helicopter maker Sikorsky, Carrier and Hamilton Sundstrand — posting substantial increases in profit for the quarter.
Profit was up nearly 32 percent at Sikorsky, which has benefited from increased military orders to support U.S. operations in Afghanistan and Iraq.
However, profit slumped by 2 percent, to $535 million, at jet engine manufacturer Pratt & Whitney. United Technologies said the subsidiary's large engine business grew 3 percent in the quarter, after increasing 35 percent in the same quarter last year.
Pratt & Whitney announced last week it will spend $1.5 billion to buy out Rolls-Royce from a joint venture that makes engines for the Airbus A320. The new joint venture between Pratt and Rolls will focus on engines for new planes, once they're designed, that will eventually replace the 737, made by Boeing Co., and the A320.
It was the second major deal announced by United Technologies in a month. In September, it said it struck a deal to buy Goodrich Corp., which makes jet components such as landing wheels and brakes, for $16.4 billion.
In a statement Wednesday, Chief Executive Louis Chenevert called the agreements "transformational deals."
Shares dipped 29 cents to $73.83 in midday trading.