United Technologies’ third quarter profit fell but still beat analysts’ expectations. The Farmington, Conn.-based aerospace and building systems manufacturer also said it would announce additional restructuring plans this quarter as it aims to be “flatter and more transparent” organizationally.
UTC reported that net income fell 19% from a year earlier, to $1.4 billion, or $1.61 per share. Results for the quarter include restructuring costs of 6 cents per share, while earnings per share in the year ago quarter included 22 cents of favorable one-time items, net of restructuring. Excluding these items in both quarters, earnings per share of $1.67 fell 2%. Excluding the impact of both unfavorable foreign exchange rate changes and restructuring and one-time items, earnings per share were up 1%.
Analysts, on average, were expecting $1.55 a share, according to Thomson Reuters I/B/E/S. Revenue fell 5.7%, to $13.79 billion, about $770 million below analysts’ expectations.
“United Technologies is executing the strategic plan set forth earlier this year and is focused on maximizing the performance of our core building and aerospace systems businesses under a flatter and more transparent organizational structure,” UTC president and chief executive Gregory Hayes said in a press release.
Sales fell 1%, excluding the negative impact from currency swings. The company cited a delay in jet engine deliveries for its Pratt & Whitney division that it expects to recover in the fourth quarter.
UTC expects the previously announced sale of its Sikorsky unit to Lockheed Martin to close in the fourth quarter. The company’s board authorized a new $12 billion share repurchase program, including the $6 billion accelerated share repurchase using the net proceeds from the $9 billion Sikorsky sale. The new share repurchase program replaces the previous program announced on July 20.
Including the $4 billion in repurchases made to date in 2015, UTC now expects to complete $16 billion of share repurchases through 2017.
As of September 30, UTC had $5.5 billion of cash and short-term investments on its balance sheet. Hayes told analysts on the company’s third-quarter conference call that UTC would announce “significant additional restructuring actions” in the fourth quarter.
The company reiterated its previous guidance ranges for full-year EPS of $6.15 to $6.30, and sales between $57 and $58 billion.