UTX United Technologies Corporation

By Thomas Gryta 

United Technologies Corp. reported second-quarter profit rose 42% and raised its full-year outlook as sales grew in all its major divisions.

The Farmington, Conn., conglomerate said revenue growth was driven by its Pratt & Whitney jet engine unit and its aerospace systems business. The struggling Otis elevator division increased sales by 7% in the period, but it was the only major business with a profit drop as margins slid by about a third.

It was the company's fourth consecutive quarter of organic sales growth of 5% or better, Chief Executive Greg Hayes said in a statement. The company will hold a conference call with analysts at 8:30 a.m. ET.

The adjusted earnings of $1.97 a share exceeded analyst expectations of $1.85, according to Thomson Reuters. Revenue of $16.7 billion also beat a projection of $16.27 billion.

United Technologies boosted its 2018 adjusted earnings outlook to a range of $7.10 to $7.25 a share, up from a previous view of $6.95 to $7.15 a share. It also raised the low end of its 2018 sales projection by $500 million and now expects $63.5 billion to $64.5 billion. Its free cash flow goal of $4.5 billion to $5 billion is unchanged.

Analysts expect 2018 earnings of $7.13 on revenue of $64.12 billion

The company reported net income of about $2 billion, up from $1.4 billion a year earlier. Per-share earnings rose to $2.56 from $1.80 a year ago. Total sales rose 9% to $16.7 billion from $15.3 billion.

The company, which has several activist investors pushing for changes, is planning a portfolio review to decide whether it will break into three separate companies, a process set to begin after it closes its $23 billion acquisition of Rockwell Collins.

The deal is expected to close in the third quarter with a decision on splitting the company made by year-end.

Write to Thomas Gryta at thomas.gryta@wsj.com

(END) Dow Jones Newswires

July 24, 2018 07:46 ET (11:46 GMT)

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