United Technologies Corp. (UTX) posted higher fourth-quarter profit than analysts estimated as the acquisition of aerospace-parts maker Goodrich Corp. buoyed performance.
Earnings excluding discontinued operations were $1.04 a share, the Hartford, Connecticut-based company said today in a statement. That compared with the $1.03 average of 22 estimates in a Bloomberg survey. Sales rose 14 percent to $16.4 billion.
Chief Executive Officer Louis Chenevert is reaping the benefits of the $16.5 billion Goodrich deal, the largest aerospace takeover on record, while streamlining units that make Carrier air conditioners and Pratt & Whitney jet engines. The company, which also makes Sikorsky helicopters and Otis elevators, reiterated its forecast for 2013 profit and sales.
“It was a good quarter and a good end of the year,” Christian Mayes, a Des Peres, Missouri-based analyst at Edward Jones & Co., said in a telephone interview. “Things are proceeding along in line with the company’s expectations, not least of all with the integration of Goodrich.”
Including restructuring, currency-exchange charges, costs related to the Goodrich acquisition and other items, income from continuing operations fell about 27 percent to $945 million, compared with $1.28 billion, or $1.42 a share, a year earlier.
The company’s aerospace systems unit, which includes Goodrich, posted operating profit of $264 million in the quarter, up 33 percent from a year earlier. It was the only division to report higher earnings, after taking into account restructuring costs and other items.
Profit from discontinued operations, largely made up of the Hamilton Sundstrand industrial pumps and compressor businesses, which were sold, was $1.11 billion, the company said.
Including both, net income advanced 55 percent to $2.06 billion, or $2.26 a share, from $1.32 billion, or $1.47, a year earlier.
North American orders for residential equipment at the company’s climate, controls and security unit, which makes Carrier air conditioners, climbed 20 percent in the fourth quarter, according to the statement. Orders for Otis elevators and escalators climbed 12 percent.
The global economy is finding its footing, Chief Financial Officer Greg Hayes said in a telephone interview after the results were announced.
“We all feel a lot better about the economy than we did a year ago or even a couple of months ago when we were thinking about how 2013 would unfold,” Hayes said.
United Technologies rose 0.7 percent to $88.07 at the market close in New York. The company has advanced 7.4 percent this year, compared with a gain of 4.8 percent for the Standard & Poor’s 500 Index.
For the full year, the company earned $4.85 billion from continuing operations, or $5.35 a share, on $57.7 billion of sales. That compares with estimates for profit of about $5.32 per share and revenue of about $58 billion.
United Technologies said 2013 profit will be $5.85 to $6.15 a share on sales of $64 billion to $65 billion. Earnings and revenue will grow fastest at its aerospace systems unit, which includes Goodrich and Hamilton Sundstrand, the company said at a meeting with analysts and investors last month.
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