United Technologies narrows sales guidance

Aerospace and building systems manufacturer United Technologies tightened sales guidance for the rest of the year as organic sales in the latest quarter grew at the previously expected pace.

United narrowed its sales guidance for 2019 to $76bn-$76.5bn from a previous outlook of $75.5bn-$77bn. The company still expects organic sales growth of 4-5pc.

Third quarter sales grew by 18pc to $19.5bn compared to the prior year period. The growth in sales is largely attributable to the acquisition of Rockwell Collins, which closed in the fourth quarter of 2018. Organic sales grew by 5pc in the quarter ending 30 September.

Profits in the third quarter totaled $1.1bn, down from $1.2bn the year earlier.

Collins Aerospace segment sales rose to $6.5bn in the third quarter, up from $4bn the previous year as the Rockwell Collins acquisition helped lift sales by as much as 58pc. Sales from the commercial aftermarket business, which includes OEM replacement parts and repair services, led the increase in organic sales.

United's Pratt and Whitney aircraft engine division lifted third quarter sales to $5.3bn, up from $4.8bn the year prior on growth in military and commercial volumes. Quarterly engine shipments increased to 825 from 780 in the previous year period.

The company still expects to spin off its Otis and Carrier segments into independent companies in the first half of 2020 as it merges its aerospace segments with fellow giant Raytheon.

Elevator producer Otis' third quarter sales grew to $3.3bn from $3.2bn the year prior. New equipment orders grew 6pc in the quarter. Trailing 12-month new equipment orders declined by 1pc resulting from a decline in demand from the Americas and EMEA regions, partially offset by increased demand from Asia.

HVAC producer Carrier sales totaled $4.8bn in the third quarter, down from $4.9bn in the year earlier period. Equipment orders declined 11pc, led by a decrease in transport refrigeration equipment orders.