UPDATE 3-United Technologies profit tops estimates; revenues miss

Wed Jan 22, 2014 11:38am EST
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By Lewis Krauskopf

Jan 22 (Reuters) - United Technologies Corp, the world's largest maker of elevators and air conditioners, reported a rise in fourth-quarter profit that topped estimates, helped by a delay in shipping a helicopter order.

The diversified manufacturer said it did not ship eight helicopters under a Canadian contract, as expected, which actually benefited its profit because they are sold at a loss, helping the profit top estimates. However, revenue was reduced by about $400 million because the helicopters were not delivered.

Costs for the maritime helicopters have increased under the contract with the Canadian government, to the point that each is now expected to cost the company's Sikorsky unit more to make than the price covers. The company expects to deliver the helicopters later this year.

Total revenue at United Technologies, which also produces Pratt & Whitney jet engines and Black Hawk helicopters, rose 1.9 percent to $16.76 billion, it said on Wednesday. That was about $330 million short of analysts' expectations.

United Technologies shares rose 1 percent to $116.12 in morning trading. The stock, a component of the Dow Jones industrial average, jumped about 37 percent in 2013, outpacing the broader U.S. market.

In an interview, United Technologies Chief Executive Officer Louis Chenevert pointed to revenue growth of 4 percent, excluding acquisitions and even with the delayed helicopter shipment.

"The combination of organic growth and our sustained cost reduction has us well-positioned for another good year," Chenevert said.   Continued...