Hartford-based United Technologies Corp. said today its fourth quarter profit rose 8 percent, helped by gains in aerospace and its expanding fire and security business that offset declines in its heating, ventilating and air conditioning business.
UTC also reaffirmed its earnings guidance for this year.
The parent of jet engine manufacturer Pratt & Whitney, Sikorsky Aircraft and the Otis elevator and Carrier heating, air conditioning and ventilating businesses earned $1.15 billion, or $1.23 per share, in the three months ended Dec. 31, up from $1.06 billion, or $1.08 per share, a year ago.
The latest results included a 6-cent-per share benefit from one-time gains that exceeded restructuring costs.
Thomson Reuters says analysts it surveyed expected earnings per share of $1.22 for the quarter. The analysts’ estimates typically exclude one-time items.
Revenue slipped to $14.5 billion from $14.71 billion a year ago, hurt by the impact of the stronger dollar on its overseas results.
“UTC had a solid close to 2008 in spite of deteriorating end markets and currency headwinds,” President and CEO Louis Chenevert said in a statement.
At 11 a.m., UTC shares traded at $47.34, down $2.02, or 4.1 percent.
For 2008, profit was $4.69 billion, or $4.90 per share, up 11 percent $4.22 billion, or $4.27 per share in 2007.
That matched expectations by analysts and UTC’s forecast last month of $4.90 per share.
Revenue for the year was $58.68 billion, up 7 percent from $54.76 billion and helped by acquisitions and gains due to favorable foreign exchange.
UTC reiterated its previous guidance for 2009 earnings per share of between $4.65 and $5.15, which would be between plus and minus 5 percent over 2008.
Analysts expect 2009 earnings per share to be $4.78, according to Thomson Reuters.
Chenevert said he expects tough financial comparisons in the first half of this year due to the recession. In response, the company is aggressively cutting costs, he said. Restructuring costs totaled $357 million in 2008, he said, up slightly from the $350 million UTC initially promised.
Operating profit in the fourth quarter was up in four of UTC’s six businesses: fire and security, Pratt & Whitney, Sikorsky and aerospace manufacturer Hamilton Sundstrand. However, Carrier’s operating profit fell to $160 million from $259 million in the fourth quarter of 2007.
And Otis elevator, which had previously helped boost profit for the conglomerate as it followed an office construction boom in China, fell to $578 million from $648 million in the fourth quarter of 2007.
New equipment orders for Otis declined 14 percent in the quarter, with nearly half that due to the stronger dollar, UTC said. (AP)
