United Tech lifts the low end of 2013 forecast after cost savings

 
City A.M. Reporter
UNITED Technologies, the world’s largest maker of lifts and air conditioners, raised the low end of its 2013 profit forecast yesterday, as cost savings from job cuts and improving sales trends offset weakness in its defence business.

The diversified manufacturer, which also produces Pratt & Whitney jet engines and Black Hawk helicopters, cut its projection for full-year revenue to roughly $63bn from $64bn as third-quarter sales fell short of analysts’ targets.

Uncertainty over the US government’s planned spending cuts on federal projects is weighing on United Tech’s military business, which represents about 18 per cent of the company, finance chief Greg Hayes said in an interview.

“That’s where the revenue shortfall occurred, both in the quarter as well as for the full year,” Hayes said. “The good news is the rest of the business is doing well.”

The company said third-quarter net income rose to $1.43bn, or $1.57 per share, from $1.42bn, or $1.56 per share, a year earlier.

Earnings from continuing operations increased to $1.55 per share from $1.37.

Revenue rose 2.8 per cent to $15.46bn, missing analysts’ expectations of $16.18bn.

Operating profit rose in four of United Tech's five segments, with the Sikorsky unit, which produces Black Hawks, posting lower results.