LONDON (ShareCast) - (Sharecast News) - United Technologies posted better-than-expected quarterly revenues and profits as it continued to progress on spinning off its activities outside of the aerospace field and its merger with Raytheon.
For the three months ending on 31 December, the industrial conglomerate reported a 8.0% rise in sales to reach $19.55bn (consensus: $19.38bn), despite which adjusted earnings per share declined by 1.0% on a year ago to $1.94 (consensus: $1.84).

Full-year sales on the other hand jumped approximately 16.0% to $77.0bn, helped by a 12 percentage point boost from acquisitions, while adjusted EPS was ahead by 9.0% at $8.26, and free cash flow hit $1.9bn.

Commenting on the industrial conglomerate's results, chief Gregory Hayes highlighted that both adjusted earnings and FCF beat management's forecasts, with sales, adjusted profits and cash flows all at record highs, a performance which he attributed to "continued strength" in the aerospace segment.

Hayes also indicated that the process of spinning-off its Carrier unit and Otis elevator arm was expected to complete in the second quarter of 2020.

A merger of its aerospace activities with those of rival Raytheon was expected to follow a similar timeline.

In terms of the outlook, sales at aircraft engine maker Pratt&Whitney were seen growing at a rate in the mid single digits in comparison to 2019, with adjusted operating profits increasing by $225.0-275.0m.

At Collins Aerospace meanwhile, revenues were expected to decline at a low single digit pace when compared to 2019, with the suspension of Boeing 737 Max production expected to subtract five percentage points.

Collins Aerospace manufactures landing systems for aircraft, nuclear command and control systems, and engine and airframe controls

Lower ADS-B mandate sales and divestitures required as part of its tie-up with Raytheon were also expected to drag on Collin Aerospace's topline.

As of 1233 GMT, shares of United Technologies were trading 1.64% lower to $148.55, but remained near their all-time highs.

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