Despite a revenue miss, United Technologies beat on earnings and lifted the Dow out of the doldrums on Tuesday. It didn’t hurt that the company also raised the low end of its full-year guidance as well — especially great news since just a few months ago, CEO Louis Chenevert predicted that sequestration would knock a dime off UTX’s full-year numbers.
One reason for UTX’s strong performance is the company’s nearly $600 million restructuring effort it kicked off last year. UTX’s acquisition of B.F. Goodrich last year has also helped by expanding its footprint in the commercial aircraft business.
One of the company’s crown jewels is the innovative Electric Power Generating and Start System (EPGSS) that provides Boeing’s 787 with five times the electric power available to a similar size Boeing 767. Because of it, growth in BA’s order book for the carbon-composite jetliner is good news for UTX.