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United Technologies Benefits From An Improved Cost Structure
Diversified manufacturing behemoth United Technologies (UTX) has reported first-quarter share earnings of $0.93. This tally compared with our estimate of $0.92, but was up sharply from the prior-year mark of $0.78. The top line remained compressed on a year-over-year basis, falling about 4% below our expectation. At aircraft engine unit, Pratt & Whitney, revenues continued to falter, which was the primary reason for the top-line shortfall. Nevertheless, a significantly improved gross margin, as well as a reduced level of operating costs, resulting from recent streamlining and productivity initiatives, eased the path to the bottom-line upturn.