UTC’s Second Quarter Earnings Beat Wall Street Expectations
By Eric Gershon, The Hartford Courant, Conn.
Jul. 17–United Technologies Corp. reported second quarter earnings that beat Wall Street expectations and raised its full year earnings guidance, while acknowledging that high oil prices and a weakening world economy are beginning to take a toll.
Hartford-based UTC reported net income of $1.3 billion for the quarter, up 11 percent over the same quarter last year, on sales of $15.7 billion, up 13 percent. Earnings were share were $1.32, the company said, or two cents above Thomson-Reuters First Call consensus, up 14 percent.
Restructuring costs clipped 6 cents from earnings per share, the company said, which foreign currency exchange benefits added four cents.
Despite evidence of “moderation in our commercial aerospace aftermarkets,” UTC said it now expects full year sales of $60 billion and earnings in a range of $4.80 to $4.95, up from $4.65 to $4.85.
“While the challenges in the world’s economies we saw at the outset of the year are materializing, especially with higher oil prices impacting the airlines and the U.S. economy generally, we remain confident in our ability to deliver on this increased guidance given the balance across UTC’s businesses and the strength in our backlogs,” Chief Executive Louis Chenevert said in a statement.
The company — parent of Pratt & Whitney, Hamilton Sundstrand, Sikorsky Aircraft, Otis Elevator Co., Carrier Corp. and UTC Fire & Security — said it planned to double restructuring spending in 2008 and would probably spend more than $2 billion to buy back its own shares. The company said it spent $719 million on share repurchase in the second quarter and more than $1.5 billion in the first half of the year.
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