United Tech Profit Up 4%, Raises Outlook
Diversified manufacturer United Technologies reported a 4.1% higher net profit Wednesday, boosted by strong demand from the commercial construction and aircraft markets.
It also raised its profit forecast for the year to $4.15 to $4.25 per share from a prior range of $4.05 to $4.20 per share.
Analysts, on average, expect $4.19 per share, according to Reuters Estimates.
The company, which makes products ranging from Carrier air conditioners to Black Hawk military helicopters, said second-quarter profit came to $1.15 billion, or $1.16 per diluted share, compared with $1.1 billion, or $1.09, a year earlier.
Revenue came to $13.9 billion, up 13.4 percent from $12.26 billion a year earlier.
Analysts, on average, had expected revenue of $13.3 billion, according to Reuters Estimates.
Chairman and Chief Executive George David in a statement attributed the company's revenue growth to "solid markets worldwide in commercial aviation and commercial construction."
He said one weak spot for United Tech was selling air conditioning systems in the U.S. residential market, which has softened sharply over the past year.
United Tech's results have been driven by strong commercial construction markets in the United States and abroad, as well as continued solid demand for airplanes. The company makes airplane electronics as well as jet engines.
The Hartford, Connecticut-based company, which generates about 60% of its revenue outside the United States, has benefited from strong investment in office buildings, airports and other infrastructure projects in developing countries, particularly China.
United Tech has also benefited from the weak U.S. dollar, which makes its products appear comparatively less expensive for foreign buyers. The company estimated that 3% of its sales rise was related to currency fluctuations.
The company's shares have outpaced the major U.S. indexes this year, rising 22.9%, greater than the 12.1% rise gain of the Dow Jones industrial average , of which it is a component.