United Technologies Profit Climbs 20 Percent
United Technologies issued its first quarter results Tuesday, posting a 19 percent surge in operating income despite a slowdown in economic growth in Europe and China. The company's diversified catalog of products helped overcome lagging demand in a few areas, as did the sale of certain underperforming units unloaded to fund its $16.5 billion acquisition of Goodrich, an aerospace supplier.
In the three months ended March 30th, United's income from continuing operations totaled $1.26 billion, or $1.31 a share, an improvement of nearly 20 percent over 2011's first quarter, excluding data from the divisions it sold or acquired over the last twelve months. Those same operations produced a profit of $1.05 billion, or $1.06 a share, in the same quarter a year ago. Overall revenue, meanwhile, fell 2 percent from a year ago to $12.42 billion, marking the company's first decline in sales in two years.
In March, United announced it was selling its struggling rocket engine and wind power operations to help finance the Goodrich takeover, for which it will also assume between $8 and $10 billion in new debt. The conglomerate also indicated that restructuring costs will reach $450 million this year, up from a previous estimate of $350 million. United also reiterated its previously issued guidance calling for full-year 2012 earnings of between $5.30 and $5.50 per share.