(By Balachander) United Technologies Corp. (NYSE: UTX) reported a drop in quarterly earnings from continuing operations and the industrial conglomerate cut its 2012 sales forecast, citing the lack of recovery in the commercial aerospace aftermarket and continued uncertainty in the global economy.
The parent company of Otis elevator, Sikorksy Aircraft posted earnings from continuing operations, including items, of $1.25 billion or $1.37 per share for the third quarter, down from $1.29 billion or $1.43 per share in the year-ago quarter.
Excluding items, EPS fell 6 percent. Wall Street analysts', on average, expected EPS of $1.18.
Sales increased 5.7 percent to $15.04 billion, versus market expectations of $15.51 billion, helped by net acquisitions.
New equipment orders at Otis rose 7 percent, North American Residential HVAC new equipment orders at UTC Climate, Controls & Security advanced 3 percent. Commercial spares orders at Pratt & Whitney's large engine business climbed 14 percent.
Adjusted consolidated segment operating profit margin shrank 100 basis points to 15.0 percent.
Total costs and expenses increased 7.3 percent.
Looking ahead for the full year, the Hartford, Connecticut-based company still expects EPS in the range of $5.25 to $5.35, while analysts expect $5.30.
United Technologies now expects sales of $58 billion for the year, versus $58 billion to $59 billion projected earlier. Consensus estimate calls in for sales of $58.54 billion.
United Technologies is increasing its investment in restructuring to $600 million for 2012, up from $500 million planned earlier.
The stock, which has been trading in the 52-week range between $70.41 and $87.50, ended Monday's regular trading at $77.83.