United Technologies 4Q profit down but sales grow

Published on NewsOK Modified: January 23, 2013 at 11:59 am •  Published: January 23, 2013
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In addition, Otis, the largest elevator company in China, will benefit from rising home construction in the Asian nation, he said. United Technologies said orders in China for the quarter were up 17 percent after slumping 11 percent over the first three quarters of 2012.

Fourth-quarter profit at Otis was $644 million, down 9 percent. Jay Malave, vice president of investor relations, told analysts that cost-cutting and restructuring in 2012 will result in a return to rising profit this year.

United Technologies cut its 2013 profit guidance for Sikorsky due lower sales and profit and a charge. Malave told analysts that including a $157 million charge related to a delay in a helicopter program with the Canadian government, operating profit was down 7 percent and sales were 8 percent lower.

United Technologies said 2013 profit at Sikorsky is expected to be between $100 million and $150 million, down from previous guidance of $250 million to $300 million.

For the year, net income at United Technologies was $5.13 billion, including discontinued operations. Profit from continuing operations was $4.85 billion. Revenue came to $57.71 billion.

The conglomerate's Hamilton Sundstrand segment is a parts supplier for Boeing's now-grounded Dreamliner 787, but Hayes said it does not furnish the lithium-ion battery or battery charger at the center of the investigation. He would not comment except to say United Technologies does not believe the findings of the investigation will have a material impact on UTC.

The 787 fleet was grounded after a battery caught fire in Boston and another was overheated, forcing an emergency landing of an All Nippon Airways 787 in Japan.

United Technologies company maintained its 2013 guidance of profit between $5.85 and $6.15 per share on revenue of $64 billion to $65 billion. That's still roughly in line with what analysts expect: Earnings of $6.05 per share on revenue of $65.02 billion.

Shares rose 50 cents to $87.97 in afternoon trading. Over the past 12 months, the stock has gained 14 percent.

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Stephen Singer can be reached at http://twitter.com/stevesinger10