Revenues for the quarter increased 17 percent to $US9.3 billion with organic growth of 9 per cent. Revenues for the first three quarters were $27.6 billion, 23 per cent above last year.
<?xml:namespace prefix = o ns = “urn:schemas-microsoft-com:office:office” />
Cash flow from operations was $US950 million, including $US201 million of voluntary contributions to pension plans, and exceeded net income after capital expenditures of $US180 million.
“This was another solid quarter the UTC way,” said Chairman and CEO George David. “We had tougher conditions in Carrier’s North American air conditioning markets after an exceptionally strong first half, but excellent Otis results and continuing recovery in aerospace aftermarkets provided the balance. As anticipated, restructuring costs in the quarter reduced EPS by 8 cents.”
“As we close in on the year, we’re tightening EPS guidance to a range of $US5.45-$US5.50, equaling 16 or 17 percent growth for the year. Operating cash flow remains strong and after capital expenditures should equal net income for the year including approximately $US700 million to fund pension plans. We’ll confirm 2005 expectations at our usual investor meeting in December, with the outlook currently being for double digit earnings growth,” concluded David.
Third quarter results include restructuring charges of $US58 million. As previously disclosed, full year charges for cost reduction actions will exceed the favorable impact of a second quarter tax settlement and first quarter contract related gain. Favorable foreign exchange added 3 percentage points each to revenue and EPS growth in the quarter.
Year to date acquisition spending of approximately $US340 million does not include the Linde Refrigeration transaction, which closed earlier this month for about $US390 million including debt assumed. UTC has repurchased $US688 million of common stock year to date, including $US208 million in the third quarter. Full year share repurchase is now expected to exceed $US900 million.
For the nine months to date, UTC reported EPS of $US4.23, 20 per cent above last year. Net income increased to $US2.14 billion, 21 per cent above last year. Cash flow from operations was $US2.84 billion and after capital expenditures of $451 million exceeded year to date net income.
