United Technologies profits up 4 percent in Q2

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HARTFORD, Conn. – United Technologies Corp., citing growth in commercial aerospace and construction, reported second-quarter profits of nearly $1.15 billion Wednesday, up 4 percent from the same quarter last year.

Earnings per share for the quarter that ended June 30 were $1.16. Analysts surveyed by Thomson Financial expected earnings per share of $1.15. The company reported a net income of $1.1 billion, or $1.09 per share, during the second quarter last year.

Revenue for the quarter was $13.9 billion, up 13.4 percent from the second quarter of 2006.

George David, chairman and chief executive, said it was another strong quarter for United Technologies.

"Solid markets worldwide in commercial aviation and commercial construction, coupled with the successes of a wide range of new UTC products are doing this, and we see these conditions continuing over the balance of the year and into 2008," he said in a statement.

United Technologies, the parent company of jet engine manufacturer Pratt & Whitney, airline power systems maker Hamilton Sundstrand, Otis elevator and other industrial companies, raised its revenue guidance for the year to $53 billion, from $51 billion, and earnings per share guidance to between $4.15 and 4.25 from between $4.05 and $4.20.

One weakness cited by David was North America’s residential heating, ventilating and air conditioning business, reflecting the downturn in the U.S. housing market. As a result, profitability was down at Carrier’s North American residential business, David said.

However, Carrier reported a 19 percent overall increase in profits for the quarter, from $410 million to $489 million, which David credited to diversification in U.S. commercial markets and residential markets overseas.

Sikorsky Aircraft reported a 107 percent increase in profits for the quarter, to $87 million from $42 million in the second quarter last year. Sikorsky has shipped 49 large helicopters, "increasing our confidence in Sikorsky’s full-year guidance," David said.

During the quarter, United Technologies agreed to acquire Finland-based Marioff Corp. for about $360 million through its UTC Fire & Security unit. Marioff makes and services water mist fire suppression systems.

The unit also said it completed the purchase of the electronic security business of Britain’s Rentokil Initial for $1.16 billion. UTC Fire & Security said the purchase will strengthen the company’s position in Europe and locations in the U.S.

Hamilton Sundstrand is building the auxiliary power, environmental control and other power systems for Boeing’s 787 Dreamliner. Hamilton Sundstrand also has said it will provide auxiliary power units for Lufthansa’s fleet of 30 new Airbus aircraft.

And Air Caraibes said it selected engines made by Pratt & Whitney for two new Airbus’ A330 aircraft.

Shares of United Technologies slipped $1, or 1.3 percent, to $75.84 in early morning trading.