(By Balachander) United Technologies Corp. (NYSE: UTX) reported a drop in quarterly earnings from continuing operations as costs increased and the industrial conglomerate backed its 2013 forecast.
The parent company of Otis elevator, Sikorksy Aircraft posted earnings from continuing operations, including items, of $1.04 billion or $1.04 per share for the fourth quarter, down from $1.37 billion or $1.42 per share in the year-ago quarter.
Excluding items, EPS fell 9 percent. Wall Street analysts', on average, expected EPS of $1.03.
Sales increased 14.4 percent to $16.44 billion, versus market expectations of $16.62 billion.
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New equipment orders at Otis rose 12 percent, North American Residential HVAC new equipment orders at UTC Climate, Controls & Security jumped 20 percent. Commercial spares orders at Pratt & Whitney's large engine business climbed 46 percent.
Adjusted consolidated segment operating profit margin shrank 200 basis points to 13.3 percent due to the impact of the purchase of Goodrich Corp. and the Canadian Maritime Helicopter program charge at Sikorsky.
Total costs and expenses increased nearly 18 percent.
Looking ahead for the full year 2013, the Hartford, Connecticut-based company still expects EPS in the range of $5.85 to $6.15, while analysts expect $6.04. United Technologies continues to expect sales of $64 billion to $65 billion, surrounding consensus estimates.
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The stock, which has been trading in the 52-week range between $70.71 and $87.50, ended Tuesday's regular trading at $87.47.