April 24, 2018

UTC 1Q profits flat, revenues up

HBJ File Photo
HBJ File Photo

Farmington conglomerate United Technologies Corp. said its first-quarter profits were flat despite seeing a 10 percent jump in revenues.

For the first quarter ended March 31, UTC recorded net income of $1.3 billion, or $1.62 a diluted share, compared to $1.4 billion, or $1.73 a diluted share, in the year-ago period. UTC's revenues rose 10 percent to $15.2 billion in the quarter compared to $13.8 billion the year prior.

Pratt & Whitney, a UTC jet engine manufacturer, posted the highest sales increase of 15 percent, totaling more than $4.3 billion. Meanwhile, UTC Aerospace Systems reported sales of $3.8 million, up 6 percent vs. 2017.

In the quarter, Otis' new equipment orders were down 4 percent versus the prior year, while new equipments orders at UTC Climate, Controls & Security increased by 10 percent.

"We are off to a solid start in 2018," said Gregory Hayes, UTC chairman and chief executive officer. "Sales were up 10 percent, including 6 percent organic growth which represented our strongest first quarter organic growth rate since 2011, with all four businesses contributing."

UTC raised its 2018 sales outlook to a range of $63 billion to $64.5 billion, up from $62.5 to $64 billion. It anticipates earnings per share of $6.95 to $7.15, an increase from $6.85 to $7.10.

Meanwhile, UTC is set to merge with Iowa avionics manufacturer Rockwell Collins in a deal worth $30 billion.

If regulators approve the acquisition, Rockwell Collins will be combined with UTC Aerospace Systems to create a new United Technologies business called Collins Aerospace Systems. The proposed deal is expected to close by the third quarter of 2018.

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