United Tech Earnings Beat, but Strong Dollar Hits Sales
United Technologies reported quarterly earnings on Tuesday that opped analysts' forecasts, but revenues were undermined by a strengthening dollar, which sent its share price lower in pre-market trading.
The company delivered third-quarter earnings excluding items of $1.37 per share, down from $1.47 a share in the year-earlier period and exceeding most analysts' estimates.
Revenue ncreased o $15 billion from $14.80 billion a year ago, but the negative impact from foreign currency translation shaved about seven cents off UTC's earnings.
Analysts had expected United Technologies to report $15.51 billion in revenue and earnings of $1.18 a share, according to a consensus estimate from Thomson Reuters.
The company warned that it expects further costly restructuring this year that would total $600 million, up from a previous estimate of $500 million, which would lead to a one-time gain. UTC also guided lower its expectations for 2012 sales, saying it expects that figure to come in around $58 billion.
The company cited a beneficial impact from its purchase of the International Aero Engines oint venture from Rolls Royce, which helped add about three cents to its earnings per share during the quarter.
UTC's acquisition of Goodrich ad no impact on its third quarter results, but the company said it expects the transaction to add about ten cents to its full-year results — down sharply from the 20 cents it previously estimated.
"The integration of Goodrich and IAE is off to a good start with solid underlying performance at both businesses," said Louis Chenevert, UTC chairman and CEO.
Following the release, the multinational conglomerate's shares dipped 0.5 percent in early market action on the New York Stock Exhange. (Get real-time quotes for United Technologies here.) he strengthening U.S. dollar affected the value of its foreign sales.
Organic sales decreased 2 percent compared to the same quarter in 2011, and foreign currency translation had an adverse impact of 3 percentage points.