HARTFORD, Conn. (AP) — United Technologies Corp. is expected to post a modest increase in revenue for the fourth quarter and stronger sales growth for 2013, while its emphasis on cost-cutting drives a stronger boost in profit.
The Hartford, Conn., aerospace and building systems conglomerate is set to report its results before the markets open on Wednesday.
WHAT TO WATCH FOR: Chief Executive Officer Louis Chenevert told analysts in December that United Technologies, parent company of jet engine maker Pratt & Whitney, helicopter manufacturer Sikorsky Aircraft and other businesses, picked up the pace of cost-cutting as it anticipated growth in its aerospace and building systems businesses.
It announced in October it would spend $500 million on restructuring in 2013, up from $350 million announced earlier in the year.
"It's clear to me we had a softer recovery than we expected this time last year, but we still delivered on the high end of the original range that we portrayed here a year ago," Chenevert said.
United Technologies said in December 2012 that it expected 2013 earnings per share of between $5.85 and $6.15 on sales of $64 billion to $65 billion. Last month, it said it expects 2013 earnings per share of about $6.15 on sales of about $63 billion.
Sterne Agee analyst Peter Arment said in a Jan. 13 note to investors that aerospace companies in the fourth quarter should continue to benefit from rising airline production and healthier repair and maintenance markets.
"While the economic recovery has not been as strong as originally expected, by accelerating restructuring and cost reductions, United Technologies (is) positioned to meet the high end of earnings per-share targets," he said.