by Christopher Freeburn | April 24, 2012 12:56 pm
Earnings at elevator and heating-and-cooling system manufacturer United Technologies (NYSE:UTX) jumped 19% during the first quarter to $1.26 billion, excluding charges resulting from the sale of three business units. That compares to $1.05 during the same quarter last year.
Earnings per share hit $1.31, which exceeded the forecast of analysts surveyed by Reuters, who predicted an average of $1.20 a share.
Including the charges, profits declined 64.7% to $330 million from last year’s $1.01 billion.
The company said its Carrier residential cooling system division saw a 19% jump in orders for air conditioners in March. UTX said low inventories of air conditioners had helped boost sales, Reuters noted.
Overall sales were down 2% to $12.42 billion, which missed analysts’ expectations, Reuters noted.
Estimated restructuring costs were increased from $450 million from $350 million for the year.
Company officials said the market for its elevator and heating cooling systems was “awful” in Europe, where commercial construction remained “anemic,” while China’s recently hot commercial construction market has cooled in recently. Other emerging markets showed strong growth.
United Technology will soon complete its $16.5 billion purchase of Goodrich (NYSE:GR), financed in part through the sale of its Rocketdyne, Clipper Windpower and Hamilton Sundstrand’s units.
The company continued to predict EPS of $5.30 to $5.50 for 2012. It forecast total revenue for the year rising 10% to about $61 billion or $62 billion, excluding charges for business unit disposals and acquisitions.
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