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United Technologies Releases 2013 Financial Results

January 27, 2014

United Technologies Corp. (UTC) reported full year 2013 earnings per share of $6.21 and net income attributable to common shareowners of $5.7 billion , up 16 percent and 17 percent, respectively over the prior year. In a release on Jan. 22 UTC said sales of $63 billion were 9 percent above prior year, including net acquisitions (8 points) and organic growth (1 point). The company did not recognize revenue on the Canadian Maritime Helicopter program in 2013 which resulted in a net earnings per share benefit of $0.06 versus expectations. Segment operating margin was 15.3 percent, 130 basis points higher than prior year. Adjusted for restructuring and one-time items, segment operating margin of 15.7 percent was 90 basis points higher than prior year. Cash flow from operations of $7.5 billion , less capital expenditures of $1.7 billion , exceeded net income attributable to common shareowners. "UTC closed a strong 2013 with 16 percent earnings growth despite slower than expected recovery in our end markets," said Louis Chenevert , UTC Chairman and Chief Executive Officer. "The integration of our transformational deals and relentless focus on cost reduction were at the core of another successful year. And we delivered strong cash flow and margin expansion even as we made significant investments for future growth." Earnings per share for the fourth quarter of $1.58 included $0.11 of restructuring charges, partially offset by $0.02 of net favorable one-time items. The prior year quarter included $0.25 of restructuring costs and one-time charges. Adjusted for restructuring costs and net one-time items, earnings per share grew 29 percent, with segment operating margins of 15.3 percent. Sales of $16.8 billion increased 2 percent, reflecting the benefit of organic growth (4 points) partially offset by net divestitures (2 points). "We saw an acceleration of organic growth throughout the year," added Chenevert. "Fourth quarter organic sales growth of 4 percent combined with continued orders strength gives us good momentum as we enter 2014." New equipment orders at Otis increased 8 percent over the year ago quarter. UTC Climate, Controls & Security equipment orders increased 5 percent organically. Large commercial engine spares orders were up 20 percent at Pratt & Whitney and commercial spares orders increased 19 percent at UTC Aerospace Systems . "We are confident in our ability to deliver 2014 earnings per share of $6.55 to $6.85 on sales of approximately $64 billion ," Chenevert said. "With a portfolio and organization focused on our core markets, we have a strong foundation for earnings growth in 2014 and beyond." UTC expects to invest nearly $2 billion in capital expenditures in 2014, and continues to target cash flow from operations less capital expenditures equal to net income attributable to common shareowners. The company also expects share repurchase and acquisition spend of $1 billion each in 2014, following $1.2 billion and $151 million , respectively, in 2013. United Technologies Corp. , based in Hartford, Conn. , provides high technology products and services to the building and aerospace industries. More information: http://www.utc.com ((Comments on this story may be sent to newsdesk@closeupmedia.com ))


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Source: Manufacturing Close - Up


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