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United Tech profit rises 17.8%, affirms full-year forecast
[BENGALURU] United Technologies Corp, the maker of Otis elevators, Pratt & Whitney aircraft engines and Carrier air conditioners, beat analysts' expectations with a 17.8 per cent rise in first-quarter profit, helped by higher sales in all four of its business units.
The results showed a "solid quarter" for the company, "which should continue to support the stock at current levels," Peter Arment, an analyst at Baird Equity Research, wrote in a note.
United Tech shares were up 0.7 per cent at US$117.70 in premarket trading.
The company on Wednesday reported 30 per cent growth of new orders in Europe, a sign of strengthening economic conditions, Chief Financial Officer Akhil Johri said in an interview.
But China remained a tough environment, with orders falling 10 per cent in dollar terms, but were up 1 per cent in volume terms, he said, noting that United Tech is looking to buy local elevator makers in China as the sector consolidates.
Net income attributable to common shareholders rose to US$1.39 billion in the first quarter ended March 31, from US$1.18 billion a year earlier. The company affirmed its earnings forecast for the full year of US$6.30 to US$6.60 a share.
Earnings per share attributable to common shareholders rose to US$1.73 from US$1.42, including a one-time gain of 25 cents.
Excluding the gain, earnings rose to US$1.48 a share, compared with the consensus analyst estimate of $1.39 a share, according to Thomson Reuters I/B/E/S.
Net sales increased 3.4 per cent to US$13.82 billion.