Aircraft manufacturing company United Technologies (UTX) on Wednesday reported better-than-expected fourth quarter results, helped by its cost optimization measures as well as the decision to split the company into three different firms. Net sales rose 15% to $18 billion, higher than analysts’ projection of $16.59 billion.
Earnings for the quarter rose to 83 cents per share from 50 cents per share a year ago. On an adjusted basis, earnings jumped 22% to $1.95 per share, surpassing the street consensus of $1.51 per share.
UTX shares jumped 2.6% during pre-market trading on Wednesday. The stock has declined 18% so far this year.
Earnings were primarily driven by the Carrier segment, where profit margin improved to 15% from 13.3% a year ago. Overall profit magin during the quarter was pegged at 11.3%.
United Technologies also posted its expectations for the current fiscal year. At the end of fiscal 2019, the company expects adjusted EPS in the range of $7.70 to $8.00 on net sales between $75.5 billion and $77.0 billion.
Chief Executive Officer Gregory Hayes said, “Looking to 2019, our segment profit is expected to grow faster than sales, and free cash flow, excluding separation costs, is expected to grow faster than earnings.”
United Technologies posts upbeat Q3 results, lifts 2018 profit view
Following the completion of Rockwell Collins acquisition in November, the company had announced its decision to split itself into three different companies – United Technologies, Otis and Carrier. Carrier is the new name of the Climate, Controls & Security (CCS) division, which will be spun-off along with the Otis elevators business.
This move comes as part of United’s decision to focus on its aerospace business in order to improve operations. After the spin-off, United Technologies will comprise of Collins Aerospace Systems and Pratt & Whitney.