United Technologies Earnings Rise
HARTFORD, Conn. (AP) _ United Technologies Corp. said Thursday its earnings rose an unexpectedly strong 7 percent in the fourth quarter, led by sales growth at its jet-engine subsidiary Pratt & Whitney.
Net income in the last three months of 1997 was $244 million, or 97 cents a share on a diluted basis, compared with $229 million, or 88 cents a diluted share, in the same period a year ago.
The results beat analysts’ estimates of 92 cents per share. United Technologies’ shares surged 5 percent on the news, gaining $3.62 1/2 to $75.25 by early afternoon on the New York Stock Exchange.
Quarterly revenues rose 3 percent to $6.31 billion, compared with $6.13 billion a year ago.
At Pratt & Whitney, operating profit increased 25 percent, driven by 14 percent revenue growth, cost reductions and productivity improvements. The Carrier air-conditioning unit boosted operating profit 21 percent on 4 percent higher revenues.
Otis elevators saw its operating profit fall by $76 million, mainly due to charges for work force reductions.
For all of 1997, United Technologies’ earnings rose 18 percent to $1.07 billion, or $4.21 a diluted share, compared with $906 million, or $3.48 per share, a year ago. Full-year revenues rose 5 percent to $24.71 billion from $23.51 billion.