Summary
United Technologies Corporation (UTC) reported strong first-quarter 2008 results, with revenues increasing 11.6% year-over-year to $13.7 billion and net income growing significantly to $1.0 billion, or $1.03 per diluted share, up from $819 million, or $0.82 per diluted share, in the prior year period. This growth was driven by solid organic revenue increases across its diverse segments, particularly in aerospace and commercial businesses, as well as favorable foreign currency translation and strategic acquisitions. The company's operational efficiency improvements, cost containment efforts, and benefits from past restructuring actions contributed to an 11% increase in consolidated operating profit. Despite some economic headwinds in the U.S. residential market, UTC's global diversification and strong product demand across most segments allowed it to navigate challenging conditions effectively. The company also continued its commitment to returning capital to shareholders through significant share repurchases and dividend payments.
Key Highlights
- 1Revenues increased 11.6% to $13.7 billion in Q1 2008 compared to Q1 2007.
- 2Net income rose 22.1% to $1.0 billion ($1.03 diluted EPS) in Q1 2008, up from $819 million ($0.82 diluted EPS) in Q1 2007.
- 3Consolidated operating profit increased 11% to $1.67 billion.
- 4Strong organic revenue growth of 7% was supplemented by a 4% favorable foreign currency impact and 3% from acquisitions.
- 5The company repurchased $820 million of common stock and paid $293 million in dividends during the quarter.
- 6Restructuring charges totaled $34 million in Q1 2008, with ongoing actions expected to yield significant annual savings.
- 7UTC's diverse segment performance helped mitigate weaknesses in the U.S. residential market.