BOSTON (Reuters) - United Technologies Corp posted a 23 percent drop in profit and lowered its 2009 forecast as it faces weaker-than-expected orders for equipment used in large buildings and aircraft.
The world's largest maker of elevators and air conditioners said on Tuesday that cost cuts were starting to pay off and its rate of order decline appeared to stabilizing. Second-quarter earnings were slightly higher than analyst expectations.
The company, which also makes jet engines and helicopters. looks for full-year earnings of $4 to $4.20 per share, down from a prior range of $4 to $4.50. Wall Street is more bearish, on average looking for $4.10 per share.
"The year over year rate of decline in orders across the business appears to have stabilized, although orders remain lower than previously anticipated," said Chief Executive Louis Chenevert, in a statement.
Second-quarter profit fell to $976 million, or $1.05 per diluted share, from $1.275 billion, or $1.32 per share, a year earlier. Analysts looked for $1.04 per share.
Revenue dropped 17 percent to $13.2 billion from $15.9 billion.
The revenue decline was steeper than analysts expected, Deutsche Bank analyst Nigel Coe wrote in a note to clients. The company lowered its full-year revenue forecast to $53 billion from $55 billion.
The stock fell 2 percent to $54 in premarket trading. At Monday's close, United Tech shares were up less than 1 percent so far this year, while the Dow Jones industrial average <.DJI> was down less than 1 percent.
The Hartford, Connecticut-based company has cut about 18,000 jobs in 2008 and 2009 in the face of slumps in two key end markets: commercial construction and aviation.
Its competitors include Eurocopter, a unit of EADS
(Reporting by Scott Malone; Editing by Derek Caney and Jeffrey Benkoe)
