HARTFORD (dpa-AFX) - United Technologies Corp. (UTX) reported a profit for the first-quarter 2016 that declined 16.5 percent from the prior year. The latest-quarter result included restructuring charges. It reaffirmed its 2016 outlook.
'We are off to a solid start in 2016. UTC delivered strong operational performance in the first quarter with organic sales growth of 2 percent. We are also making progress on our strategic priorities, particularly our ability to invest in innovation as we continue to focus on structural cost reduction,' said UTC President and Chief Executive Officer Gregory Hayes.
Net income attributable to common shareowners for the first-quarter dropped 16.5 percent to $1.19 billion from $1.43 billion in the same quarter last year.
Income from continuing operations attributable to common shareowners declined to $1.18 billion or $1.42 per share from $1.36 billion or $1.51 per share in the prior year quarter. The latest-quarter result included $0.05 of restructuring charges.
Quarterly adjusted earnings from continuing operations were $1.47, up 2 percent from the prior year. Analysts polled by Thomson Reuters expected the company to report earnings of $1.39 per share for the quarter. Analysts' estimates typically exclude special items.
Quarterly net sales increased to $13.36 billion from $13.32 billion last year. Wall Street expected revenues of $13.18 billion.
Otis new equipment orders in the quarter increased 1 percent over the prior year at constant currency, and grew 6 percent excluding China. Equipment orders at UTC Climate, Controls & Security decreased by 8 percent, primarily driven by a difficult compare in the refrigeration business. At Pratt & Whitney, commercial aftermarket sales were up 19 percent, and up 1 percent at UTC Aerospace Systems.
UTC reiterated its 2016 outlook and continues to anticipate adjusted earnings per share of $6.30 to $6.60 on sales of $56 billion to $58 billion; organic sales growth of 1% to 3%. Wall Street currently is looking for fiscal year 2016 earnings of $6.50 per share on annual revenues of $56.99 billion.
The company also continues to expect share repurchases of $3 billion in 2016, beyond the repurchases that will be completed in 2016 under the previously announced $6 billion accelerated share repurchase program; and $1 billion to $2 billion placeholder for acquisition.
For 2016, UTC continues to anticipate free cash flow in the range of 90 to 100 percent of net income attributable to common shareowners.
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