UTC Reports Third Quarter Earnings Per Share Growth Of 13 Percent To $1.55; Increases Lower End Of 2013 EPS Range And Now Expects EPS Of $6.10 To $6.15, Up 14 To 15 Percent
Oct 22, 2013
HARTFORD, Conn. – United Technologies Corp. (NYSE:UTX) reported third quarter earnings per share of $1.55 and net income attributable to common shareowners of $1.4 billion, both up 13 percent over the year ago quarter. Results for the current quarter included $0.08 per share of restructuring costs. Favorable one-time items offset restructuring costs in the year ago quarter. Before these items, earnings per share increased 19 percent year over year.
Sales for the quarter of $15.5 billion were 3 percent above prior year reflecting the benefit of net acquisitions (2 points) and organic growth (1 point). Third quarter segment operating profit increased 14 percent over the prior year quarter, and segment operating margins were 15.8 percent. Adjusted for restructuring costs and net one-time items, segment operating profit also grew 14 percent, with segment operating margins of 16.6 percent.
“UTC delivered 13 percent earnings growth on strong operating performance. Our solid year to date results, additional restructuring savings, and improving sales trends give us confidence to increase the lower end of our earnings per share range. We now expect 2013 earnings per share of $6.10 to $6.15, growth of 14 to 15 percent, up from $6.00 to $6.15 previously,” said Louis Chênevert, UTC Chairman & Chief Executive Officer.
New equipment orders at Otis increased 4 percent over the year ago third quarter. UTC Climate, Controls & Security equipment orders increased 13 percent organically. Large commercial engine spares orders were up 17 percent at Pratt & Whitney. On a pro-forma basis, adjusted to include Goodrich in both years, commercial spares orders increased 5 percent at UTC Aerospace Systems.
“With sustained order growth momentum in a majority of our markets this quarter, we continue to expect organic growth to accelerate as we exit the year. However, with the ongoing weakness in military aerospace markets and slow pace of recovery in Europe, we now expect full year sales of approximately $63 billion, from our previous estimate of $64 billion,” Chênevert said.
UTC expects to invest $500 million in restructuring for 2013 and continues to anticipate restructuring expenses will be offset by one-time items.
Cash flow from operations was $1.5 billion and capital expenditures were $383 million in the quarter. Share repurchase and acquisition spending were $330 million and $54 million, respectively. The company anticipates cash flow from operations less capital expenditures to essentially equal net income attributable to common shareowners for the year.
“The creation of UTC Building and Industrial Systems better positions UTC to capture growth opportunities as urbanization in emerging markets continues to be a powerful megatrend,” Chênevert added. “This new organization will allow UTC to leverage our unmatched capabilities and scale in the building segment.”
On Oct. 9, 2013, UTC’s Board of Directors declared an increase in its fourth quarter dividend to 59 cents per common share. The dividend will be payable Dec. 10 to shareowners of record at the close of business Nov. 15.
United Technologies Corp., based in Hartford, Conn., is a diversified company providing high technology products and services to the building and aerospace industries. Additional information, including a webcast, is available at http://www.utc.com. To learn more about UTC, visit the website or follow the company on Twitter: @UTC.
All financial results and projections reflect continuing operations unless otherwise noted. The accompanying tables include information integral to assessing the company’s financial position, operating performance, and cash flow, including a reconciliation of differences between non-GAAP measures used in this release and the comparable financial measures calculated in accordance with generally accepted accounting principles in the United States.
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