Hartford-based United Technologies Corp. felt the impact of the downturn in aerospace and commercial real estate markets as key businesses posted declines in the third quarter.
UTC said today that markets are stabilizing, though at lower levels.
The conglomerate that runs jet engine maker Pratt & Whitney, Otis elevator, Sikorsky Aircraft and other business, said it earned $1.06 billion, or $1.14 per share, down 17 percent from the same period last year.
Revenue for the quarter ended Sept. 30 was $13.38 billion, down 11 percent from the year-ago period.
Analysts surveyed by Thomson Reuters expected earnings of $1.12 per share on revenue of $13.31 billion.
It expects 2009 earnings to be $4.10 per share, the midpoint of previous guidance of between $4 per share and $4.20.
CEO Louis Chenevert said order rates have “substantially stabilized” year over year, although at lower levels.
United Technologies has begun to see improvement in some Asian economies, notably China’s, he said.
The 2009 earnings guidance reflects higher restructuring costs of $800 million with one-time gains of about $175 million. Its earlier assumption was for $750 million of restructuring costs and $200 million of gains.
With the exception of Sikorsky Aircraft, which has benefited from increased military sales in the U.S. wars in Afghanistan and Iraq, operating profit again fell at each of United Technologies’ businesses.
Carrier, which makes heating, ventilating and air conditioning equipment, posted a 26 percent decline in the third quarter. It was the first United Technologies subsidiary to feel the impact of the recession, with business sagging in 2007 as housing markets shattered with the subprime mortgage implosion.
More recently, Carrier’s refrigerated transportation container business has suffered due to falling orders by the weak shipping industry.
Operating profit at Pratt & Whitney fell by 16 percent and Hamilton Sundstrand, also dependent on the weak aerospace industry, dropped nearly 14 percent in the quarter.
At Otis elevator, which is sensitive to commercial construction, particularly in China, operating profit fell by just 2 percent. (AP)
