UTC 2Q profits up 19 percent; raises outlook

Editor’s note: This is an updated version of an earlier story.

United Technologies Corp. posted a 19 percent gain in second-quarter profits as demand for all of the Hartford industrial conglomerate’s product line, including jet engines, heating-cooling equipment, elevators and aerospace systems, climbed in the period.

UTC earned $1.43 billion, or $1.45 a share, in the three months ended June 30, up from $1.21 billion, or $1.20 a share, earned the same period a year ago.

Second-qurater revenues climbed 9 percent to $15.1 billion vs. $13.8 billion a year ago.

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Results for the quarter included a nickel-a-share in restructuring charges, offset by a 5-cents-a-share in one-time items.  The prior year quarter included a net charge for restructuring and one-time items of 12 cents a share.

“For the first time since the second quarter of 2008, all six of our business segments reported organic sales growth in the quarter,” said Louis Chenevert, UTC Chairman & Chief Executive Officer.  “More encouragingly, order rates remain strong and in line with expectations across most of the segments including our longer cycle commercial construction related businesses.  

As a result of its strong quarter, UTC raised its full 2011 earnings outlook to a range of $5.35 to $5.45 per share, up from $5.25 to $5.40 previously.  Annual sales are now projected to hit $58 billion, up nearly 7 percent over 2010 and above prior expectation of $57 billion

In a conference call later Wednesday with analysts, UTC finance chief Greg Hayes said the company closed the quarter with $5.4 billion in cash, up 22 percent from the end of the first quarter.

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Hayes said UTC will likely spend less than what he called a $1.5 billion placeholder on mergers and acquisitions this year and slightly more than $2.5 billion for share repurchases.

 

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