United Technologies Beats Estimates and Reaffirms Expectations

United Technologies Corp. on Wednesday said revenue edged up but profit declined as the company faced currency headwinds and a challenging global environment.

Still, the company reaffirmed its full-year forecast as results beat analysts' expectations.

Chief Executive Greg Hayes said despite a "slow-growth global macro environment" United Technologies was "off to a solid start in 2016."

Mr. Hayes has begun overhauling the Hartford, Conn.-based conglomerate's portfolio and management. Last summer, United Technologies sold its Sikorsky helicopter unit to Lockheed Martin Corp. for $9 billion. In December, the company laid out a three-year, $1.5 billion cost-cutting plan that takes aim at "high-cost" locations with an eye to consolidate manufacturing facilities.

For the quarter, the company reported a profit of $1.19 billion, or $1.42 a share, down from $1.43 billion, or $1.51 a share, a year prior. When adjusted for restructuring and other nonrecurring costs, per-share earnings were $1.47.

Total sales edged up 0.3% to $13.36 billion, with a 2% increase in organic sales being mostly offset by unfavorable exchange rates.

Analysts had predicted earnings of $1.39 a share on revenue of $13.18 billion.

The latest results come almost two months after fellow industrial giant Honeywell International Inc. withdrew a $90 billion bid to buy United Technologies. Honeywell backed down from pursuing the massive tie-up after facing opposition from United Technologies, antitrust regulators and major customers.

Results were mixed in the company's four segments, which all make up between 20% and 30% of the company's revenue. In the company's Otis elevator unit, sales fell 1.1% and in the aerospace-systems segment sales declined 1.2%. Sales in the climate, controls and security segment decreased 1.2%, which the company attributes to a good quarter last year.

Commercial aftermarket sales increased, helping boost the Pratt & Whitney engine segment. Revenue increased 7.7%.

Operating margins decreased across the four segments and the adjusted segment operating profit margin fell to 15.4% from 16.4%.

Write to Austen Hufford at [e-mail]

(END) Dow Jones Newswires

April 27, 2016 08:25 ET (12:25 GMT)

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