United Tech beats by $0.05, reports revs in-line; reaffirms/raises lower end of FY14 EPS guidance
Reports Q1 (Mar) earnings of $1.32 per share, $0.05 better than the Capital IQ Consensus Estimate of $1.27; revenues rose 2.4% year/year to $14.74 bln vs the $14.72 bln consensus. Co raises/reaffirms guidance for FY14, sees EPS of $6.65-6.85 vs. $6.83 Capital IQ Consensus Estimate, up from prior guidance of $6.55-6.85.
- Sales of $14.75 billion increased 2%, reflecting the benefit of organic growth (5 points) partially offset by net divestitures (2 points) and adverse foreign exchange (1 point).
- New equipment orders at Otis increased 9% over the year ago first quarter, led by 27% growth in China.
- Foreign currency had an unfavorable impact of 2 points overall and a favorable impact of 2 points in China.
- Equipment orders at UTC Climate, Controls & Security increased 1% organically, with growth in HVAC and fire and security products partially offset by a decline at Transicold.
- Large commercial engine spares orders were up 11% at Pratt & Whitney and commercial spares orders increased 9% at UTC Aerospace Systems.
--> Seeing solid demand in China housing and infrastructure markets - conf call comments- Trend in Europe is positive but slow.