Farmington-based United Technologies Corp. profit is up 8.8 percent in the third quarter, driven by demand for its geared turbofan engine and Otis elevators.
UTC reported a profit of $1.48 billion for the third quarter, or $1.74 per diluted share, higher than the $1.362 billion, or $1.61 per diluted share, for the same period a year ago, according to Securities and Exchange Commission filings.
UTC also posted revenue of $14.35 billion for the third quarter, with sales up 4 percent versus $13.78 billion the prior year.
Year to date profit is slightly more than $4 billion, or $4.86 per diluted share, down slightly from $4.33 billion, or $4.76 per diluted share, for the nine-month period in 2015.
UTC Chairman & Chief Executive Officer Gregory Hayes said solid growth and cash generation, “even with continuing investments in the aerospace related ramp-up,” give the company confidence in meeting its commitment to shareholders.
Otis’ new equipment orders in the quarter increased 2 percent over the prior year, and grew 8 percent excluding China, Hayes said.
The geared turbofan engine manufactured by subsidiary Pratt & Whitney is in service with eight global operators, while 8,400 engines are booked for orders, both announced and unannounced, he said.
Based on UTC’s year-to-date performance, the company expects slightly higher organic sales growth, he said. As a result, UTC has raised the low end of its adjusted earnings per share (EPS) outlook by 10 cents and now expects 2016 EPS of $6.55 to $6.60 per share.
