Summary
For the first quarter of 2019, United Technologies Corporation (RTX) reported net sales of $18.365 billion, an increase of 20% compared to $15.242 billion in the prior year. This growth was significantly influenced by the acquisition of Rockwell Collins, which contributed 15% to the increase, with organic growth across all four segments adding a further 8%. Diluted Earnings Per Share (EPS) for the quarter was $1.56, a slight decrease from $1.62 in the prior year, impacted by restructuring charges and other non-recurring items. Operationally, Collins Aerospace Systems showed significant growth, with sales increasing 71% year-over-year primarily due to the Rockwell Collins acquisition. Pratt & Whitney also saw a strong 11% increase in sales. The company is progressing with its strategic plan to separate into three independent companies (aerospace, Otis, and Carrier) by the first half of 2020, which is expected to create value for shareholders.
Financial Highlights
50 data points| Revenue | $10.95B |
| Gross Profit | $2.53B |
| R&D Expenses | $728.00M |
| SG&A Expenses | $2.00B |
| Operating Expenses | $16.43B |
| Operating Income | $1.14B |
| Interest Expense | $431.00M |
| Net Income | $1.35B |
| EPS (Basic) | $1.58 |
| EPS (Diluted) | $1.56 |
| Shares Outstanding (Basic) | 853.20M |
| Shares Outstanding (Diluted) | 860.70M |
Key Highlights
- 1Net sales increased by 20% to $18.365 billion, largely driven by the acquisition of Rockwell Collins (+15%) and 8% organic growth across all segments.
- 2Diluted Earnings Per Share (EPS) decreased slightly to $1.56 from $1.62 in the prior year, impacted by $0.35 per share in restructuring and non-operational charges.
- 3Collins Aerospace Systems experienced substantial revenue growth of 71% due to the Rockwell Collins acquisition, while Pratt & Whitney's sales increased by 11%.
- 4Gross margin as a percentage of sales decreased to 25.4% from 26.0%, impacted by inventory step-up amortization at Collins Aerospace Systems and higher commodity costs.
- 5Research and development spending increased significantly, with company-funded R&D up 31% and customer-funded R&D up 71%, primarily due to the Rockwell Collins acquisition.
- 6The company is actively pursuing its plan to separate into three independent entities (aerospace, Otis, and Carrier), expected to be completed by the first half of 2020.
- 7Cash flow from operations improved significantly to $1.500 billion from $453 million in the prior year, benefiting from working capital improvements and lower settlement payments.