United Tech sees sales rising with Goodrich buy

Published on NewsOK Modified: December 13, 2012 at 7:21 pm •  Published: December 13, 2012
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Edward Jones analyst Christian Mayes said revenue growth will be driven by rising demand in the commercial-airline industry, which is buying planes and energy-efficient engines, and recovery in United Technologies' building systems companies, Otis elevator and Carrier heating, ventilating and air conditioning.

Otis is expected to increase its elevator service work and benefit from a strengthening housing market in China, Mayes said.

"It's poised for a comeback next year," he said.

But United Technologies also is preparing for military-spending cuts as the U.S. winds down operations in Afghanistan and the Obama administration looks to the Pentagon to slice into the federal deficit. Pratt & Whitney announced last week it is cutting about 100 workers through layoffs and buyouts due to falling demand for repair work and the completion of a program to build engines for the F-22 fighter.

Chenevert said the main focus next year is for United Technologies to digest the Goodrich purchase. So far, it's working out, he said.

"All the signs are there that this is going to be a perfect marriage for years to come," he said.