Defense contractor United Technologies rakes in record $77B
Conglomerate is spinning off Carrier air conditioners and Otis elevators
United Technologies delivered record results in 2019, but shares slipped in early trading.
The Farmington, Conn.-based aerospace conglomerate earned $5.5 billion, or $6.41 a share, as sales rose 16 percent year-over-year to a record $77 billion. Earnings of $8.26 a share, excluding one-time items, topped the $8.15 average projection from analysts surveyed by Refinitiv.
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“United Technologies delivered record sales, adjusted earnings per share and free cash flow in 2019 on continued aerospace strength and a return to profit growth at Otis," the division that makes elevators and escalators, CEO Gregory Hayes said in a statement. The company is on track to spin off that unit as well as Carrier air conditioners early in the second quarter, he added.
The conglomerate's remaining aerospace businesses will be combined with Raytheon to form Raytheon Technologies, which Hayes plans to complete at the same time as the spinoff. The all-stock "merger of equals" will create a company with $74 billion of annual sales.
For this year, United Technologies sees Pratt & Whitney sales up mid-single digits from 2019 as the unit's profit rises by $225 million to $275 million. Meanwhile, Collins Aerospace earnings are expected to fall as much as $325 million due to lagging revenue from the grounded Boeing 737 Max and other challenges.
United Technologies shares have climbed 0.8 percent through Monday, slightly outperforming the S&P 500's 0.4 percent gain.