United Technologies Corp. [UTX] posted strong third quarter financial results driven by operating profits at its helicopter and industrial businesses and sales gains at each of its segments.
Net income increased 11 percent to $1.3 billion, $1.47 earnings per share (EPS) from $1.2 billion ($1.30 EPS) a year ago, nipping consensus estimates by two cents. Sales were up 9 percent to $14.8 billion from $13.6 billion with 6 percent of the growth organic.
UTC’s Sikorsky helicopter segment led the gains, with sales up 21 percent to $1.9 billion and operating profits soaring 32 percent to $215 million, driven by higher international military aircraft deliveries and expanded aftermarket volumes.
UTC’s two other segments that operate in the aerospace and defense sectors had somewhat mixed results. Hamilton Sundstrand boosted sales 8 percent and profits 11 percent, driven by aftermarket volume, industrial growth and lower engineering and development costs.
Aircraft engine maker Pratt & Whitney eked out a 1 percent sales gain as higher aftermarket volume outweighed lower military engine deliveries. Operating profits at Pratt fell 11 percent due to higher engineering and development costs and unfavorable foreign currency effects at Pratt Canada.
UTC’s industrial and commercial segments all performed well, with Otis, Carrier, and Fire and Security each posting increases in sales and profits.
The company said its earnings were stronger than expected, and therefore raised its earnings guidance for the year to $5.47 EPS from the previous outlook of between $5.35 and $5.45. Sales are still expected to be $58 billion.
Free cash flow in the quarter was $1.7 billion