Modest 4Q revenue rise seen for United Tech

Associated Press

Posted on January 17, 2014 at 6:00 AM

Updated today at 6:30 PM

HARTFORD, Conn. (AP) United Technologies Corp. is expected to post a modest increase in revenue for the fourth quarter and stronger sales growth for 2013, while its emphasis on cost-cutting drives a stronger boost in profit.

The Hartford, Conn., aerospace and building systems conglomerate is set to report its results before the markets open on Wednesday.

WHAT TO WATCH FOR: Chief Executive Officer Louis Chenevert told analysts in December that United Technologies, parent company of jet engine maker Pratt & Whitney, helicopter manufacturer Sikorsky Aircraft and other businesses, picked up the pace of cost-cutting as it anticipated growth in its aerospace and building systems businesses.

It announced in October it would spend $500 million on restructuring in 2013, up from $350 million announced earlier in the year.

"It's clear to me we had a softer recovery than we expected this time last year, but we still delivered on the high end of the original range that we portrayed here a year ago," Chenevert said.

United Technologies said in December 2012 that it expected 2013 earnings per share of between $5.85 and $6.15 on sales of $64 billion to $65 billion. Last month, it said it expects 2013 earnings per share of about $6.15 on sales of about $63 billion.

Sterne Agee analyst Peter Arment said in a Jan. 13 note to investors that aerospace companies in the fourth quarter should continue to benefit from rising airline production and healthier repair and maintenance markets.

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Modest 4Q revenue rise seen for United Tech