United Technologies Corp. (UTC) on Tuesday said its 18 percent increase in second-quarter sales was squandered by restructuring and reorganization costs related to its transformation into an aerospace giant.
Still, the Farmington conglomerate, which is merging with Mass.-based defense giant Raytheon Inc. in a $121 billion deal, beat Wall Street estimates and raised its profit outlook for the year by 4 to 5 percent.
For the quarter, UTC reported net income of $1.9 billion, or $2.20 a diluted share, down 7 percent from $2.1 billion in the year-ago period.
UTC’s profits sank even though its two aerospace businesses generated higher sales, including Collins Aerospace, up 66 percent to $6.5 billion in sales, and East Hartford jet-engine maker Pratt & Whitney, up 8.7 percent to $5.1 billion.
Among UTC’s other business segments, Farmington-based Otis Elevators Co. posted $3.3 billion in sales, up 4 percent; and Florida heating and cooling equipment maker Carrier reported $4.9 billion in revenues, down 1.4 percent from a year ago.
As UTC works to become a leader in the booming aerospace industry, CEO and Chairman Gregory Hayes on Tuesday said the industrial conglomerate remains on track to spin off its Otis and Carrier divisions into independent companies by the first half of 2020.
About 600 employees are currently dedicated to helping Otis and Carrier prepare to operate as stand-alone companies, Hayes said in a conference call with investors on Tuesday. UTC also recently named new chief executives of both Otis and Carrier, and is making progress on forming boards for each company, Hayes said.
UTC also plans to officially merge with Raytheon in the Greater Boston area by the first half of 2020.
The combination has already been opposed by two large UTC investors, and is slated to be reviewed by the Pentagon and the Justice Department.
This story has been updated
