UTC Q4 Earnings Shoot Up as Organic Sales Growth Continues

UTC Climate, Controls & Security business segment equipment orders increased 11% organically although operating profit remained flat.

HARTFORD, Conn. – United Technologies Corp. (UTX) posted “stellar” financial results in the fourth-quarter 2014 due, in part, to healthy margin improvement and six consecutive quarters of organic sales growth, according to Zacks. However, the company trimmed its forecast for 2015 citing the impact of the strong dollar and pension costs.

The company reported fourth-quarter 2014 net income of $1.47 million or $1.62 per share, up from $1.46 million or $1.58 in the year-ago quarter.

The reported earnings for the quarter included unfavorable one-time and restructuring costs. Excluding the one-time items, recurring earnings for the quarter were $1.88 per share, which comprehensively beat the Zacks Consensus Estimate of $1.61.

Total revenue for the fourth quarter edged up 1.4% year over year to $16.99 million. The increase in revenues was primarily driven by organic growth, partially offset by currency translation effects. The reported revenues missed the Zacks Consensus Estimate of $17.12 million.

UTC lowered its full-year earnings forecast to $6.85 to $7.05 per share on revenue of $65 billion to $66 billion. In December, the company also said that it expected to earn $7 to $7.20 per share for 2015 on revenue between $66 billion and $67 billion.

For full-year 2014, UTC reported net income of $6.22 million or $6.82 per share, considerably up from $5.72 million or $6.21 in the prior year. Total revenue for full-year 2014 improved to $65.1 million from $62.62 million in 2013.

The operations of the company were classified into five principal business segments: Otis; UTC Climate, Controls & Security; Pratt & Whitney; UTC Aerospace Systems; and Sikorsky.

New equipment orders at Otis were up 12% from the year-earlier quarter, driven by growth in North America. UTC Climate, Controls & Security equipment orders increased 11% organically. Commercial spares orders increased 5% at UTC Aerospace Systems, while Commercial aftermarket sales were down 6% at Pratt & Whitney.

Revenues at UTC Climate Controls & Security remained unchanged year over year at $4,192 million. Operating profit at UTC Climate Controls & Security remained flat at $623 million.

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