Feb. 28 (Bloomberg) -- United Technologies Corp., the maker Otis elevators and Pratt & Whitney jet engines, said a fine from the European Union for participation by nine now-fired employees in an elevator cartel will cut 2007 profit by 7 cents a share.

While the company kept its forecast of $4.05 to $4.20 a share, analysts should reduce their estimates to the middle of that range, Chief Executive Officer George David said at an investor meeting today in New York. The average estimate of 13 analysts surveyed by Bloomberg was $4.19.

``We are encouraging you to take down your consensus for the quarter and the year by this amount,'' David told analysts and investors.

United Technolgies said it will record the charge related to the fine this quarter, and that one-time gains along with a reserve that had been set up will reduce the impact to about 7 cents. The European Commission on Feb. 21 fined Otis, the world's biggest elevator maker, 224.9 million euros ($296.8 million) as part of a 992.3 million-euro fine against five top manufacturers. Otis is appealing to the European Court of First Instance.

Revenue will increase about 6 percent this year to $51 billion from $47.8 billion in 2006, David and Chief Operating Officer Louis Chenevert said. A push to streamline production through more efficient plants and cost cuts at acquired companies will help widen margins, they told analysts and investors.

United Technologies, based in Hartford, Connecticut, was projected to earn 85 cents a share in the first quarter, according to the Bloomberg survey. Revenue this year was estimated at $51 billion.

Sikorsky

Shares of United Technologies rose 18 cents to $65.64 at 4:04 p.m. in New York Stock Exchange composite trading. They have risen 12 percent in the past year.

Profit is rising at United Technologies, which also makes Hamilton Sundstrand aerospace equipment and Sikorsky helicopters, amid record airline and military demand. Otis is getting more orders in Asia and Carrier is recovering from production bottlenecks. Sikorsky production also is improving following a strike last year and a surge in orders.

Sikorsky president Jeffrey Pino reiterated the unit's forecast for a $150 million profit increase this year. Sikorsky expects in July to sign a previously announced, years-long, $12 billion contract for 500 Black Hawk helicopters and options for 300 more as the U.S. Army replaces older versions.

To contact the reporter on this story: Rachel Layne in Boston at rlayne@bloomberg.net =

Last Updated: February 28, 2007 16:23 EST