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United Tech hits 3Q targets
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October 16, 2001: 7:22 a.m. ET
Diversified manufacturer to cut 5,000 jobs but should top lowered '02 forecast.
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NEW YORK (CNNmoney) - United Technologies Corp.'s third-quarter profit jumped 14 percent, meeting Wall Street expectations, but the company said the impact of the Sept. 11 terrorist attack will cause it to cut 5,000 aerospace jobs by the end of next year.
The diversified maker of such diverse products as Pratt & Whitney jet engines, Otis elevators and Carrier air conditioners said it still expects to at least meet lowered full-year earnings forecasts and that it believes it should be able to top current estimates for 2002 earnings, although it did not give detailed guidance.
For the third quarter, the company posted net income of $565 million, or $1.12 a share, up 14 percent from $496 million, or 98 cents a share, a year earlier. Revenue rose 7 percent to $6.9 billion.
Pratt & Whitney operating profit grew 17 percent on 6 percent revenue growth due to strong sales of military engines and aftermarket parts sales for commercial aircraft. A sharp downturn in air travel and purchases of new commercial jets by U.S. carriers has led to layoffs throughout the aerospace industry. Boeing Co. (BA: Research, Estimates) announced it expects to cut 30,000 jobs by the end of next year.
United Technologies warned on Sept. 17 that the attack would hit aerospace income and cut fourth-quarter earnings per share to 67 cents, 30 cents below forecasts before the attack. The company said Tuesday it now is confident it will earn at least $3.80 a share for the year, which indicates 66 cents a share in the fourth quarter.
It also said that when it gives new earnings guidance for 2002 in December, it expects to be above current estimates. First Call's consensus EPS forecast for 2002 is $3.66, down from the $4.70 forecast before the attack.
Both the revenue and profit figures are in line with forecasts of analysts surveyed by research firm First Call.
Shares of United Technologies, a component of the Dow Jones industrial average, gained $1.18 to $53.02 Monday. 
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