Collins Performance Cited In UTC’s Strong Q2 Results
WASHINGTON—Strong performance from legacy aerospace business and the recently integrated Rockwell Collins line helped propel United Technologies Corp. (UTC) to “another strong quarter,” UTC President and CEO Greg Hayes said July 23.
“Post-acquisition, [Rockwell Collins] continues to exceed our expectations,” Hayes said of the business that now forms the bulk of the new Collins Aerospace business unit.
Collins Aerospace saw 2019 second-quarter (Q2) sales grow 66% year-over-year to $6.6 billion, including a 9% increase in organic sales. Operating profit grew 83% to $1.2 billion, thanks in large part to Rockwell’s presence. Commercial aftermarket led the revenue growth with a 16% increase, while military sales were up 5%, and new commercial sales grew 4%.
Pratt & Whitney saw total revenue climb 9% to $5.1 billion and segment operating profit grow 7%. The engine-maker received notable boosts from its new commercial engine sales, up 22%, helped in part by an increase in large commercial engine deliveries. Pratt delivered 210 large engines last quarter, compared to 173 in the first half of 2018. Large commercial deliveries through June 30 totaled 362, compared to 334 a year ago.
The F-35 ramp-up helped the new military engines business increase sales 9%, thanks to a boost in F135 engine deliveries. Pratt delivered 58 military engines in Q2, up from 43 last year. It handed over 97 in the first half of the year, up 68 in 2018.
Company-wide, UTC increased its adjusted earnings per share (EPS) 12% in Q2, to $2.20. It raised its full-year EPS target to $7.90-8.05, from previous guidance of $7.80-8. Organic sales growth is pegged at 4-5%, up from previous guidance of 3-5%.