HARTFORD, Conn. (AP) — United Technologies Corp. is expected to post strong revenue growth for the third quarter, but analysts expect profit to be down slightly from the same three months of 2012 as federal spending cuts pinch the conglomerate's military business.
The Hartford, Conn., aerospace and building systems conglomerate is set to report its results before the markets open on Tuesday.
WHAT TO WATCH FOR: Chief Financial Officer Greg Hayes warned in September of sharp cuts in U.S. military spare parts orders that are hurting its subsidiary the helicopter maker Sikorsky.
Analyst Cai von Rumohr at Cowen and Co. said in a note to investors early this month that "mostly solid operations" and improved growth at United Technologies' Climate, Controls and Security division, which makes heating, cooling and building security systems, are expected to help United Technologies overcome a 50 percent drop in Sikorsky's military parts and maintenance business.
United Technologies has said federal spending cuts will hurt 2013 earnings by 10 cents per share. Most of that has been felt at Sikorsky, Hayes said, and the impact could be bigger next year. The helicopter unit has eliminated 400 jobs this year.
Von Rumohr said orders at United Technologies in the third quarter likely reflected continuing strength in U.S. residential heating and cooling systems, United Technologies' Otis elevator business in China and North America, strong demand for aerospace parts and maintenance, U.S. commercial construction and the improving economy in Europe.
Cut pounds of stomach fat every week by using this 1 weird old tip.