Diversified conglomerate United Technologies Corp. (UTX) reported Tuesday a profit for the first quarter that soared from last year, which was weighed down by a hefty loss from discontinued operations. Net income from continuing operations grew on higher revenues amid contributions from Goodrich and International Aero Engines acquisitions. The company also reaffirmed its earnings and sales guidance for the full-year 2013.
"Our focus on integration and execution led to solid performance as we continue to build momentum. The Goodrich and IAE acquisitions are exceeding our expectations and creating new opportunities for long term organic growth," Chairman and CEO Louis Chenevert said in a statement.
The Hartford, Connecticut-based parent company of jet engine manufacturer Pratt & Whitney, Otis elevator, and Sikorsky aircraft reported net income of $1.27 billion for the first quarter, sharply higher than $330 million in the prior-year quarter.
Net income from continuing operations for the quarter increased to $1.27 billion or $1.39 per share from $1.19 billion or $1.31 per share in the year-ago quarter.
Results for the latest quarter include $0.11 per share of favorable one-time items net of restructuring costs, while the year-ago quarter included a $0.21 per share benefit from one-time items net of restructuring costs. Excluding the items, earnings per share increased 16 percent year-over-year.
On average, 23 analysts polled by Thomson Reuters expected the company to report earnings of $1.30 per share for the first quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter increased 16 percent to $14.40 billion from $12.42 billion in the same quarter last year, but missed eighteen Wall Street analysts' consensus estimate of $14.94 billion.
The company's segment operating margin contracted 20 basis points to 14.4 percent from last year.
Organic sales decreased 2 percent from last year, reflecting ongoing weakness in both Europe and the commercial aerospace aftermarket, and the impact of defense cuts at Sikorsky.
New equipment orders at Otis were up 24 percent, and new equipment orders at UTC Climate, Controls & Security grew 5 percent organically from last year.
Commercial spares orders increased 14 percent at Pratt & Whitney's large engine business, while commercial spares orders were down 28 percent organically at Pratt & Whitney, and up 2 percent at UTC Aerospace Systems.
Looking ahead to fiscal 2013, the company continues to expect earnings in a range of $5.85 to $6.15 per share, on projected annual sales between $58 billion, at the lower-end of its prior guidance range between $64 billion and $65 billion.
Street is currently looking for full-year 2013 earnings of $6.10 per share on annual revenues of $65.10 billion.
"Macroeconomic indicators coupled with order improvement in our commercial businesses point towards a gradual resumption of organic growth during the course of the year," Chenevert added.
UTX closed Monday's regular trading session at $93.63, up $0.41 on a volume of 3.13 million shares. In the past 52-week period, the stock has been trading in a range of $70.71 to $95.84.
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