United Tech beats Street view, sees better demand

21/07/2010 - 12:57

BOSTON (Reuters) - United Technologies Corp posted a 13.7 percent increase in quarterly profit and raised its full-year growth target for the second time this year, as its chief executive said demand was improving.

The world's biggest maker of elevators and air conditioners said on Wednesday that second-quarter net income attributable to common shareholders came to $1.11 billion, or $1.20 per share, compared with $976 million, or $1.05 per share, a year earlier.

Revenue rose 5.3 percent to $13.89 billion.

Analysts, on average, had looked for profit of $1.16 per share on $13.56 billion in revenue, according to Thomson Reuters I/B/E/S.

"UTC's results this quarter reflect strong execution in an improved end market environment," said Chief Executive Louis Chenevert.

The company boosted its full-year earnings per share forecast to a range of $4.60 to $4.70 from a prior $4.50 to $4.65.

United Tech shares have fallen about 4 percent so far this year, compared with a 3 percent slide for the Dow Jones industrial average .

The Hartford, Connecticut-based company said it now expects to buy back about $2 billion in shares this year, up from its prior plan to buy back about $1.5 billion in shares.

Chenevert led the company through a major round of cost-cutting last year that included eliminating some 15,000 jobs.

United Tech's competitors include Eurocopter, a unit of EADS , in helicopters; General Electric Co in jet engines; and ThyssenKrupp AG in elevators.

(Reporting by Scott Malone; Editing by Lisa Von Ahn and Gerald E. McCormick)