United Technologies reaffirms profits
Hartford-based United Technologies, the parent company of jet engine manufacturer Pratt & Whitney, airline power systems maker Hamilton Sundstrand, Carrier and other industrial companies, raised its per-share earnings guidance to between $4.15 and $4.25 from between $4.05 and $4.20 when it released its second-quarter earnings on July 18.
Louis Chenevert, the company's president and chief operating officer, confirmed the earnings outlook at the CIBC World Markets Industrials Conference in New York. He said the company's portfolio is well balanced by segment and geography, with more than 60 percent of revenue coming from outside the United States.
"UTC can deliver this kind of sustained performance moving forward," Chenevert said.
On average, analysts surveyed by Thomson Financial forecast earnings per share of $4.24.
UTX is well positioned to take advantage of growth in developing markets such as India, Chenevert said. He said the U.S. housing market is one of the few weak spots, but its heating and cooling product division Carrier has businesses to offset those affected by the housing slowdown.
The company has set aside about $2 billion for acquisitions this year, Chenevert said.
"There's no big need to create something new at this time," Chenevert said.
Asked about the impact on its Sikorsky helicopter business if the U.S. withdrew from Iraq, Chenevert said he expects the business to remain stable. He said there is a large backlog and Sikorsky's business mix has changed from 90 percent military in the past to 60 percent now.
Chenevert did say he wanted to reduce inventory at the company.
Shares of United Technologies closed Tuesday at $80.60, down $1.47. The stock has traded between $61.80 and $82.37 over the past year.
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