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Acquisitions boost UTC's income 17.5%

Keywords: Tags  United Technologies, Pratt & Whitney, Goodrich, Otis Elevator, Louis Chenevert, quarterly earnings, aerospace, Frank Haflich


LOS ANGELES — Acquisitions helped United Technologies Corp. (UTC) boost its second-quarter net income 17.5 percent, and the company sees organic growth making a larger contribution in the second half.

Net income attributable to common shareholders totaled $1.56 billion for the quarter ended June 30, up from $1.33 billion in the same period last year, on sales that rose 15.9 percent to $16.01 billion from $13.81 billion, according to the Hartford, Conn.-based manufacturer of aerospace engines and components, as well as industrial products.

While the sales growth was attributed to acquisitions, including last year’s $16.5-billion buy of Charlotte, N.C.-based landing gear and components builder Goodrich Corp. (amm.com, Sept. 22, 2011), UTC said its operations are poised to resume expansion in the balance of 2013.

"Ongoing orders momentum has UTC well-positioned for a return to organic growth in the second half of the year," chairman and chief executive officer Louis Chênevert said.

Orders for large commercial engine spares rose 65 percent at UTC’s Pratt & Whitney Co. (P&W) division in East Hartford, Conn., including its share in the International Aero Engines (IAE) venture with Germany’s MTU Aero Engines GmbH and Tokyo-based Japanese Aero Engine Corp. P&W’s operating income rose 32.8 percent to $567 million in the quarter.

UTC Aerospace Systems, which includes the former Goodrich, saw commercial spares rise 4 percent. Goodrich helped the unit more than double quarterly operating income to $499 million.

New equipment orders during the quarter at the company’s Otis Elevator unit grew 23 percent over a year earlier, paced by a 39-percent increase in China.

Goodrich and IAE "continue to exceed expectations and create new opportunities for sustainable long-term organic growth," Chênevert said.

First-half net income of $2.83 billion rose 70.4 percent from $1.66 billion a year earlier on sales that gained 15.9 percent to $30.41 billion from $26.22 billion.


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