UTC Reports Second Quarter 2015 Results
HARTFORD, Conn., July 21, 2015 /PRNewswire/ — United Technologies Corp. (NYSE: UTX) today reported second quarter earnings per share of $1.73 and net income attributable to common shareowners of $1.5 billion, down 6 percent and 8 percent respectively versus the prior year.
Results for the current quarter include unfavorable one-time items and restructuring charges of $0.08 per share. Net favorable one-time items offset restructuring costs in the second quarter of last year. Excluding these items in both quarters, earnings per share of $1.81 decreased 2 percent year over year. Foreign currency had an unfavorable impact of $0.06.
Sales of $16.3 billion decreased by 5 percent, reflecting the impact of adverse foreign exchange (4 points) and absence of the prior year Sikorsky Canadian Maritime Helicopter Program adjustment (5 points), which were partially offset by the benefit of organic growth (3 points) and acquisitions (1 point) in 2015. Second quarter segment operating profit increased 21 percent over the prior year quarter. Adjusted for restructuring costs and net one-time items, segment operating profit was down 3 percent.
“Through the first half of the year, the businesses delivered 3 percent organic sales growth in what continues to be a slow growth global economy. This solid growth contributed to a 6 percent increase in EPS on a constant currency basis, excluding the impact of gains and restructuring,” said Gregory Hayes, UTC President and Chief Executive Officer. “Continued strength in the U.S. dollar has had a significant adverse impact on our results this year.”
Otis new equipment orders in the quarter increased 5 percent over the prior year at constant currency, with growth in the Americas and in EMEA offset by a 10 percent orders decline in China. At UTC Climate, Controls & Security, equipment orders increased 4 percent, with growth in U.S. residential HVAC and Transicold offset by a 15 percent orders decline in China. Commercial aerospace aftermarket sales were up 1 percent at Pratt & Whitney and flat at UTC Aerospace Systems on an organic basis. Provisioning and repair sales at UTC Aerospace Systems were down in the quarter, but those declines were partially offset by high single digit growth in spare parts sales.