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United Technologies shares up after positive second quarter results, boosts outlook

UTX CEO on cost reduction
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Shares of United Technologies rose more than 2 percent Tuesday after the company reported quarterly earnings that beat analysts' estimates.

The Connecticut-based company posted adjusted earnings per share of $1.82, beating the $1.68 that analysts expected, according to Thomson Reuters. Revenue rose 1 percent to $14.87 billion, beating estimates of $14.7 billion.

"We continue to focus on our key priorities," CEO Gregory Hayes said in a statement. "This includes achieving critical aerospace program milestones and successfully meeting the production ramp to support our large and growing order book. We now have orders for 8,200 Geared Turbofan engines, including announced and unannounced firm and option engines."

The maker of aircraft parts, elevators, heating and ventilation systems, and other equipment raised the low end of its 2016 outlook by 15 cents from $6.45 to $6.60 per share. Sales will be $57 billion to $58 billion, compared with an earlier projection of $56 billion to $58 billion.

Net income in the quarter was $1.4 billion, down 3 percent versus the prior year. Sales of $14.9 billion were up 1 percent, with 1 point of organic and 1 point of net acquisition growth offset by 1 point of unfavorable foreign exchange, the company said.

Hayes told CNBC's "Squawk on the Street" Tuesday the company has seen success through cost reduction.

"We talk about always doing more with less," he said. "We announced last December we were going to do a billion and a half dollars of additional cost reduction that'll generate about $900 million in annual savings. I think that you saw some of the benefits of that in the second-quarter results."

United's stock has risen this year, rising more than 11 percent.

UTX Chart 2016