United Technologies' profits up despite aerospace parts slowdown

THE ASSOCIATED PRESS

United Technologies Corp., the Rock River Valley’s largest manufacturing employer, reported its second-quarter profit rose 11 percent thanks to strong growth at subsidiaries Otis Elevator and Carrier Air Conditioner.

The company also raised its full-year outlook for revenue and per-share earnings.

UTC’s higher quarterly profit and improved outlook for the year came despite a slowing economy and sharply higher prices for the energy and raw materials used by its manufacturing operations and customers.

UTC also reported a slowdown in spare parts orders at its jet engine manufacturer Pratt & Whitney and aerospace manufacturer Hamilton Sundstrand in the second quarter, Chenevert said. Large commercial engine spare parts sales at Pratt & Whitney were about flat compared with last year, and Hamilton Sundstrand’s commercial spare parts sales grew in the single digits in the second quarter.

In the Rock River Valley, United Technologies employs 2,200 at its Hamilton Sundstrand operations in Rockford and about 600 at Taylor Co. in Rockton, which is a part of its Carrier segment.

Hamilton Sundstrand’s revenues were $1.65 billion, up 17.5 percent, with operating profits of $280 million, a 13.8 percent increase. Carrier’s revenues hit $4.4 billion, up 7.4 percent, with operating profits of $487 million, down 0.4 percent.

Even as high oil prices slam some of its key markets, such as aircraft, United Technologies said business has remained strong.

“We remain confident in our ability to deliver on (our) increased guidance given the balance across UTC’s businesses and the strength in our backlogs,” said Chief Executive Louis Chenevert.

Second-quarter profit rose to $1.28 billion, or $1.32 a share, from $1.15 billion, or $1.16 a share, a year earlier.