United Technologies Reports Higher Profit, Sales

By Allison Prang and Dave Sebastian 

United Technologies Corp. posted higher-than-expected sales and adjusted earnings in the latest quarter, but warned that halted production of the Boeing Co. 737 MAX could hurt results in its Collins Aerospace business.

The company posted net income of $1.14 billion, or $1.32 a share, for the fourth quarter, up from $686 million, or 83 cents a share, a year earlier. Adjusted earnings were $1.94 a share, ahead of the $1.84 a share analysts had expected.

United Technologies reported $19.55 billion in sales, compared with $18.04 billion in the year-ago period. Analysts were looking for $19.42 billion.

The company said Tuesday it expects sales and adjusted operating profit in its Collins Aerospace division to fall in 2020, hurt partially by suspended production of the 737 MAX.

The company is selling its Collins Aerospace's Military Global Positioning System business to BAE Systems PLC for $1.93 billion.

United Technologies is dividing itself into three companies, which is expected to take place in the first half of this year. The two businesses the company is spinning off are its Carrier business, which works with heating, ventilation and air conditioning, and Otis, its elevator and escalator manufacturing division. United Technologies is also trying to merge with Raytheon Co. Together the companies would be the second-biggest military supplier when ranked by sales.

"Operational separation activities for Otis and Carrier are substantially complete, and we are executing the final steps required to spin both businesses as independent companies early in the second quarter," Chief Executive Gregory Hayes said in prepared remarks Tuesday.

The company also said it expects sales at aircraft engines business Pratt & Whitney to increase in the mid-single digits and for the division's adjusted operating profit to rise.

Shares were down 0.6% in premarket trading.

Write to Allison Prang at [e-mail] and Dave Sebastian at [e-mail]

(END) Dow Jones Newswires

January 28, 2020 08:28 ET (13:28 GMT)

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