UPDATE 3-United Technologies lifts forecasts, shares jump
(Adds detail from conference call, analyst comment, updates share price,)
NEW YORK, July 26 (Reuters) - United Technologies Corp's beat analysts estimates for quarterly profit and revenue and raised the low end of its full-year forecast, sending shares up more than 2 percent.
The maker of Pratt & Whitney aircraft engines, airplane components, heating and ventilation systems, elevators and other equipment on Tuesday reported adjusted earnings per share of $1.82 for the second quarter, topping the $1.68 that analysts expected, according to Thomson Reuters I/B/E/S. Revenue rose 1 percent to $14.87 billion, beating estimates of $14.7 billion.
United Tech's shares rose 2.5 percent to $107.25 in early trading on the New York Stock Exchange.
"United Technologies avoided most of the air pockets buffeting the multi-industry sector this quarter," analyst Deane Dray, of RBC Capital Markets, wrote in a note.
United Tech raised the low end of its full-year earnings forecast to $6.45 a share, from $6.30, while keeping the high end at $6.60.
It raised the low end of its revenue forecast by $1 billion to $57 billion while keeping the upper end at $58 billion. It reaffirmed plans to return $22 billion to shareholders, while investing in research and development.
Sales of engines and aerospace components rose in the quarter, while sales of elevators, climate controls and security systems were flat, in part due to currency effects.
Pratt saw a 20 percent rise in aftermarket sales, as more V2500 engines needed overhauls, a trend expected to continue.
But Pratt's profits fell, implying rising costs to ramp up production of Geared Turbofan engines, said Howard Rubel, an analyst at Jefferies. United Tech plans to produce 200 GTFs this year.
A 4 percent rise in sales at Otis was offset by foreign exchange, Chief Executive Greg Hayes said in an interview.
Hayes said there was no significant delay in payments by Boeing Co, which is adjusting supplier payments.
Global instability and currency shifts remain risks, Hayes said, though the company has not increased hedges.
"Clearly everybody's worried about the elections here in the U.S., but there's not much impact for the year," he said.
"Longer term, that may be a different story. But really it's just global uncertainty, it's what's going on in the marketplace, it's the global war on terror, all of those things can be disruptive. Although it's nice to have a long cycle business with a big backlog."
Net income fell to $1.37 billion from $1.54 billion a year earlier, including restructuring costs. (Reporting by Alwyn Scott in New York and Ankit Ajmera in Bengaluru; Editing by Nick Zieminski and Marguerita Choy)
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