21 Apr 10. United Technologies Corp. (NYSE:UTX) today reported first quarter 2010 earnings per share of $0.93, up $0.15 or 19 percent over the year ago first quarter. Results for the current quarter include $0.05 per share in restructuring costs. Earnings per share in the year ago quarter included $0.09 in restructuring costs net of a one time gain. Before these items, earnings per share increased 13 percent year over year. Foreign currency translation and currency hedges at Pratt & Whitney Canada accounted for $0.06 of the earnings per share increase.
Revenues of $12.1bn for the quarter were 1 percent below prior year reflecting organic decline (4 points), mostly offset by favorable foreign currency translation (3 points). Segment operating margin at 13.6 percent was 250 basis points higher than prior year. Adjusted for restructuring costs, segment operating margin was 180 basis points higher than prior year. Net income attributable to common shareowners for the quarter increased 20 percent to $866m. Cash flow from operations was $1.15bn and, after capital expenditures of $147m, exceeded net income attributable to common shareowners.
“Continued focus on cost reduction and productivity, as well as savings from restructuring actions, led to margin expansion across each of our businesses,” said Louis Chênevert, UTC Chairman & Chief Executive Officer. “Early and aggressive actions taken by the business units over the past 18 months have made UTC stronger, leaner, and well positioned to outperform as the global economy continues to recover.”
New equipment orders at Otis were up 9 percent over the year ago first quarter, including 6 points from the weaker dollar. Carrier’s Transicold orders were up 37 percent (excluding favorable foreign exchange 4 points) while Commercial HVAC new equipment orders were down 4 percent (excluding favorable foreign exchange 6 points). Commercial spares book to bill at both Pratt & Whitney’s large engine business and Hamilton Sundstrand was above 1.0.
“In addition to strong cost traction, we are seeing broader improvement in order trends, especially in the emerging markets. These order trends give us confidence organic growth will resume in the second half of this year. Accordingly, we are raising the lower end of the earnings per share guidance to $4.50 from $4.40. We now expect 2010 EPS in the range of $4.50 to $4.65, up 9 to 13 percent on revenues of $54bn to $55bn,” Chênevert added. This range continues to include $350m of expected restructuring charges and one time gains of $100m.
“Cash generation remains strong, driven by continued focus on working capital and control over capital expenditures. We expect UTC’s cash flow from operations less capital expenditures to meet or exceed net income attributable to common shareowners for the year,” Chênevert continued.
Share repurchase in the quarter was $500 m and acquisition spending was $2.1bn, including GE Security and Clipper Windpower. Full year guidance remains unchanged for both share repurchase and acquisitions at $1.5bn and $3bn, respectively.
22 Apr 10. Goodrich Corporation (NYSE: GR) announced results today for the first quarter 2010 and reaffirmed its outlook for 2010 sales, net income per diluted share and cash flow.
Commenting on the company’s performance and its 2010 outlook, Marshall Larsen, Chairman, President and Chief Executive Officer said, “Our first quarter 2010 results were consistent with our expectations. Despite the unexpected tax expense related to the health care reform legislation, we are maintaining our outlook for earnings per share. Our large commercial airplane original equipment and our defense and space market channels both experienced significant growth. Our commercial airplane aftermarket sales rose by about 9 percent sequentially, compared to the fourth quarter 2009, although they were about 10 percent lower than the first quarter 2009. We see positive indicator