(UTC) Reports Third Quarter 2014 Results

United Technologies Corporation (UTC) Reports Third Quarter 2014 Results

• EPS of $2.04, up 32% (up 12% to $1.82 ex. restructuring and one-time items)

• Sales of $16.2 billion, including 5% organic growth

• Segment margins up 60 bps to 17.2%, ex. restructuring and one-time items

• Reaffirms 2014 EPS expectation of $6.75 to $6.85​

HARTFORD/ NEW DELHI, October 22, 2014:  United Technologies Corp. reported third quarter earnings per share of $2.04 and net income attributable to common shareowners of $1.9 billion, up 32 percent and 31 percent respectively over the year ago quarter.  Results for the current quarter include $0.22 per share of favourable one-time items net of restructuring costs.  Earnings per share in the year ago quarter included $0.08 of restructuring costs and one-time items.  Excluding these items in both quarters, earnings per share increased 12 percent year over year.

Sales of $16.2 billion increased 5 percent, all driven by organic growth.  Third quarter segment operating profit increased 16 percent over the prior year, with operating margin of 17.5 percent.  Excluding restructuring costs and net one-time items, segment operating profit grew 8 percent with 60 basis points of operating margin expansion to 17.2 percent. 

"UTC delivered another quarter of solid performance," said Louis Chênevert, UTC Chairman & Chief Executive Officer.  "Along with strong margin expansion and a fifth consecutive quarter of organic sales growth, we've seen increased demand for our integrated building solutions and revenue synergy opportunities for our Building & Industrial Systems businesses.  We also achieved a number of significant program milestones that position UTC for long-term growth. These include supporting the first flight of the Airbus A320neo with Pratt & Whitney's new Geared Turbofan engines and unveiling Sikorsky's next-generation S-97 Raider helicopter."

Otis new equipment orders in the quarter increased 4 percent over the prior year at constant currency.  Equipment orders at UTC Climate, Controls & Security increased 5 percent excluding early order activity ahead of next year's SEER-14 standard change.  Large commercial engine spares orders were up 1 percent at Pratt & Whitney and commercial spares orders increased 11 percent at UTC Aerospace Systems.  Commercial aftermarket sales were up 7 percent and 10 percent at Pratt & Whitney and UTC Aerospace Systems, respectively. 

"With double-digit earnings and 4 percent organic sales growth through the first three quarters, UTC remains on track to deliver on our expectations for the year," said Chênevert. "Our solid backlog and organic growth trends continue to give us confidence in our earnings per share range of $6.75 to $6.85, on sales of about $65 billion."

Cash flow from operations was $1.9 billion and capital expenditures were $415 million in the quarter. Share repurchase was $425 million.  UTC now expects share repurchase of $1.5 billion for the year, up from the previous expectation of $1.35 billion.  As a result of ongoing investment to support the aerospace up cycle, the company continues to anticipate 2014 cash flow from operations less capital expenditures of about 90 percent of net income attributable to common shareowners.

About United Technologies Corporation

United Technologies Corp., based in Hartford, Connecticut, provides high technology products and services to the building and aerospace industries. Additional information, including a webcast, is available on the Internet at http://www.utc.com . To learn more about UTC, visit the website or follow the company on Twitter: @UTC