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Bellwethers beat the Street
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April 22, 1998: 10:01 a.m. ET
AlliedSignal, United Technologies both report a 16 percent gain in net income
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NEW YORK (CNNfn) - Two bellwethers of the economic cycle - AlliedSignal and United Technologies - reported healthy gains in first-quarter earnings Wednesday against the backdrop of a surging U.S. economy.
AlliedSignal Inc. reported a 16 percent gain in net income to $300 million, or 52 cents a share, from $259 million, or 45 cents a share. Analysts had a consensus forecast of 51 cents, according to First Call.
The Morristown, N.J.-based manufacturer of industrial materials and specialty chemicals recorded a 10 percent increase in sales to $3.6 billion.
The company said its aerospace business continued to reflect strong demand for original equipment as well as after-market parts and services.
AlliedSignal's stock (ALD) gained 5/8 to 47-9/16 in early Wednesday trading.
Meanwhile, United Technologies Corp. also reported a 16 percent increase in first-quarter net income. Earnings rose to $260 million, or $1.04 a share, from $224 million, or 87 cents a share. Analysts were expecting profits of $1.00 a share.
Revenue for the Hartford, Conn.-based automotive and aerospace components company rose 3 percent to $6.1 billion from $5.9 billion.
Results were helped by higher revenue from United Tech's Pratt & Whitney engine subsidiary.
The stock (UTX) edged up 1/4 to 98-1/8 Wednesday morning.
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