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July 25, 2017

UTC's 2Q profits grow 3%

PHOTO | Contributed UTC CEO and Chairman Gregory Hayes

Farmington-based United Technologies Corp. posted a 3 percent increase in profits for the second quarter, reflecting "solid" performance across divisions, according to CEO Greg Hayes.

For the quarter ended June 30, UTC posted net income of $1.4 billion, or $1.80 a diluted share, up from $1.3 billion, or $1.65 a diluted share in the year-ago period.

Net sales reached $15.3 billion in the quarter, up from $14.9 billion in the second quarter of 2016.

In a Tuesday morning conference call, Hayes pointed to a "solid quarter and a solid start to the year," while noting, "There's still a lot to do: That's probably the motto [going forward]."

UTC’s divisions include Climate Controls & Security, Otis Elevators, East Hartford's Pratt & Whitney and UTC Aerospace.

Hayes said the company is focused on strategic priorities by making progress with innovative products and services. He cited new products coming at its Climate Controls & Security divison and organic growth of 5 percent, while equipment orders grew 11 percent. For Otis, he noted 3 percent growth in China with flat new equipment sales, but said he expects long-term growth, despite challenges.

Pratt posted 6 percent sales growth and continued growth is expected with the geared turbofan engine of 350 to 400 engines per year, he said. Military engine sales were up 30 percent and commercial aftermarket improved by 4 percent but commercial original equipment (O&E) was down 10 percent. Hayes said he expects O&E recovery during the second half of the year.

UTC expects 2017 earnings in the range of $6.45 to $6.60 a share, with revenue in the range of $58.5 billion to $59.5 billion.

Editor's note: The overall percentage increase has been corrected from an earlier version of this story.

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