UTC reaffirms 2015 full year expectations

United Technologies reported third quarter 2015 results. Third quarter earnings per share of US$1.61 and net income attributable to common shareowners of US$1.4bn were down 17% and 19% respectively, versus the third quarter of 2014. Results for the current quarter include restructuring costs of US$0.06 per share, while earnings per share in the year ago quarter included $0.22 of favorable one-time items net of restructuring. Excluding these items in both quarters, earnings per share of US$1.67 decreased 2% year-over-year. Foreign currency had an unfavorable impact of US$0.05, or % in the quarter. Excluding the impact of both unfavorable foreign exchange rate changes and restructuring and one-time items, earnings per share were up 1% year-over-year. Sales of US$13.8bn decreased by 6% in the quarter, driven by 5 points of adverse foreign exchange and a 1 point decline in organic sales primarily attributed to a delay in engine deliveries as a result of the transition to a new logistics center at Pratt & Whitney. These deliveries should largely be recovered in the fourth quarter. Third quarter segment operating margin was 17.2%, and 17.6% when adjusted for restructuring costs. UTC expects the previously announced sale of its Sikorsky unit to close in the fourth quarter of 2015. The Board of Directors has authorized a new $12 billion share repurchase program, including the $6 billion accelerated share repurchase using the net proceeds from the Sikorsky sale. The new share repurchase program replaces the previous program announced on July 20th, 2015.