United Technologies quarterly profit beats, shares rise

FAN Editor
United Technologies logo is displayed on a screen at the post where it's stock is traded on the floor of the NYSE in New York
FILE PHOTO: United Technologies logo is displayed on a screen at the post where it’s stock is traded on the floor of the New York Stock Exchange (NYSE) in New York, U.S., September 5, 2017. REUTERS/Brendan McDermid

April 23, 2019

(Reuters) – United Technologies Corp reported a higher-than-expected quarterly profit on Wednesday, boosted by robust demand for aircraft parts at one of the producers better placed to ride out the fallout of this year’s Boeing 737 MAX groundings.

The company’s shares were up 2.8 percent at $140.80 in premarket trading.

The company, whose stock has risen 10 percent since the fatal crash in Ethiopia in March, raised the low end of its 2019 forecast for adjusted earnings per share by 10 cents to $7.80, while keeping the upper end unchanged at $8.00.

Shares of aerospace suppliers have been under pressure following the second deadly crash of a Boeing Co 737 MAX jet within five months, grounding the planes and forcing Boeing to cut production of its best-selling jets.

UTC’s stock, however, has outperformed a 0.2 percent decline in the broader S&P 500 Aerospace and Defense index, due to the aerospace supplier’s small exposure to the 737 MAX jets.

The company which acquired aero parts maker Rockwell Collins last year said it benefited from significant progress on the integration related to the acquisition in the first quarter.

UTC’s Collins Aerospace Systems unit makes aircraft seating engine components as well as interior and exterior aircraft lighting.

On an adjusted basis, the company earned $1.91 per share, beating analysts’ average estimate of $1.71 per share, according to IBES data from Refinitiv.

The company, which makes Pratt & Whitney aircraft engines, Otis elevators and Carrier air conditioners, said net sales rose 20.5 percent to $18.37 billion, and were above the Wall Street’s expectation of $17.99 billion.

(Reporting by Ankit Ajmera in Bengaluru; Editing by Shounak Dasgupta)

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