United Technologies posts strong third quarter figures

American multinational conglomerate United Technologies Corp. posted a 31% increase in net income to $1.9 billion ($2.04 per share) in the third quarter. The company cited strong sales in its Pratt & Whitney jet-engine division.

The Hartford, Connecticut-based maker of helicopters, aircraft engines, escalators, elevators, fuel cells, building systems and industrial products, reiterated its earnings forecast for 2014 of $6.75 to $6.85 per share.

Sales increased by 5% to $16.2 billion, all due to organic growth, the company informed.

Figures were boosted after the US Army selected Pratt & Whitney to help build the next-generation vertical-lift aircraft.

The aerospace division also had more than 6,000 orders for its forthcoming geared turbofan engine.

United Technologies Q3 Financials

(Data Source: United Technologies Corp)

Louis Chênevert, UTC Chairman & Chief Executive Officer, said:

“UTC delivered another quarter of solid performance. Along with strong margin expansion and a fifth consecutive quarter of organic sales growth, we’ve seen increased demand for our integrated building solutions and revenue synergy opportunities for our Building & Industrial Systems businesses. We also achieved a number of significant program milestones that position UTC for long-term growth. These include supporting the first flight of the Airbus A320neo with Pratt & Whitney’s new Geared Turbofan engines and unveiling Sikorsky’s next-generation S-97 Raider helicopter.”

Orders for new equipment in its elevator unit, Otis, increased by 4%, while orders at UTC Climate, Controls & Security rose 5%.

Orders for large commercial engine spares at Pratt & Whitney rose 1%, and commercial spares orders grew by 11% at UTC Aerospace Systems. Commercial aftermarket sales at UTC Aerospace Systems and Pratt & Whitney increased by 10% and 7% respectively.

Mr. Chênevert said:

“With double-digit earnings and 4 percent organic sales growth through the first three quarters, UTC remains on track to deliver on our expectations for the year. Our solid backlog and organic growth trends continue to give us confidence in our earnings per share range of $6.75 to $6.85, on sales of about $65 billion.”

In 2013, Mr. Chenevert announced that the company was folding in its Carrier air-conditioning business with its Otis elevators segment, which would become part of United Technologies’ building-products division. The aim is to gain a larger share of new construction projects, especially in the major emerging markets.

Mr. Chenevert is focusing the business on two main markets: building systems and aerospace.