United Technologies profit up 20 percent on strength in aerospace

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HARTFORD, Conn. – United Technologies Corp., which manufacturers heating and ventilating equipment as well as jet engines, on Wednesday reported a 20 percent increase in profit for the third quarter, crediting strength in all its businesses except Carrier, which is pressed by the deteriorating housing market.

Net income in the July-September period rose to $1.2 billion, or $1.21 per share, from $1 billion, or 99 cents a share, a year earlier.

That was better than the $1.16 expected by analysts surveyed by Thomson Financial.

Revenue for the quarter that ended Sept. 30 totaled $13.86 billion, up 14 percent from $12.16 billion in the same quarter last year.

The Hartford-based conglomerate controls brands including Carrier, Otis, Pratt & Whitney and Sikorsky. It also has fire, insurance and fuel cell divisions.

Its shares slipped 65 cents to $79 in early trading.

United Technologies increased its revenue forecast for the year to $54 billion from its previous outlook of $53 billion. Per-share earnings are expected in the range of $4.22 to $4.25, at the top end of the company’s previously stated range of $4.15 to $4.25.

Profit rose at double-digit rates in all businesses except Carrier "as markets in general remain healthy and cost reductions continue," George David, chairman and chief executive, said in a statement.

Carrier, which manufactures heating, ventilating and air conditioning equipment, reported profit at $420 million, down from $430 million in the third quarter of 2006.

David called market conditions in Carrier’s North American residential business "clearly challenging," though he said its other three global businesses delivered double-digit earnings growth.

At helicopter manufacturer Sikorsky Aircraft, profit jumped to $103 million, up from $70 million in the same quarter last year. It was the second consecutive quarter of significant gains for Sikorsky.

United Technologies said recent international tax law changes will negatively affect the fourth-quarter tax rate and offset a benefit of 4 cents per share in the third quarter.

For the first nine months of the year, net income was $3.16 billion, or $3.19 a share, on revenue of $40 billion. That compared with profits of $2.87 billion, or $2.84 a share, on revenue of $35 billion in 2006.