Hartford-based United Technologies Corp., parent to Stratford-based Sikorsky, reported third quarter earnings per share of $1.55 and net income attributable to common shareowners of $1.4 billion, both up 13 percent over 3Q a year ago.
Results for the current quarter included $0.08 per share of restructuring costs. Favorable one-time items offset restructuring costs in 3Q 2012. Absent the restructuring costs, earnings per share 3Q 2013 increased 19 percent year over year. UTC expects to invest $500 million in restructuring for all of 2013.
Sales for the quarter of $15.5 billion were 3 percent above last year.
“UTC delivered 13 percent earnings growth on strong operating performance,” said Louis Chênevert, UTC Chairman and CEO. “Our solid year to date results, additional restructuring savings, and improving sales trends give us confidence to increase the lower end of our earnings per share range. We now expect 2013 earnings per share of $6.10 to $6.15, growth of 14 to 15 percent, up from $6.00 to $6.15 previously.”
New equipment orders at Otis increased 4 percent over a year ago 3Q. UTC Climate, Controls & Security equipment orders increased 13 percent. Large commercial engine spares orders were up 17 percent at Pratt & Whitney. On a pro-forma basis, adjusted to include Goodrich in both years, commercial spares orders increased 5 percent at UTC Aerospace Systems.
“With sustained order growth momentum in a majority of our markets this quarter, we continue to expect organic growth to accelerate as we exit the year. However, with the ongoing weakness in military aerospace markets and slow pace of recovery in Europe, we now expect full year sales of approximately $63 billion, from our previous estimate of $64 billion,” Chênevert said.
Cash flow from operations was $1.5 billion and capital expenditures were $383 million in the quarter. Share repurchase was listed at $330 million and acquisition spending was $54 million.
“The creation of UTC Building and Industrial Systems better positions UTC to capture growth opportunities as urbanization in emerging markets continues to be a powerful megatrend,” Chênevert said. “This new organization will allow UTC to leverage our unmatched capabilities and scale in the building segment.”
The UTC Board of Directors declared its coming dividend to be 59 cents per common share. The dividend is payable Dec. 10 to shareowners of record at the close of business Nov. 15.
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