United Technologies has reported first quarter 2019 results. Sales of US$18.4 billion were up 20% over the prior year, including 8 points of organic sales growth and 15 points of acquisition benefit offset by 3 points of foreign exchange headwind. GAAP EPS of US$1.56 was down 4% versus the prior year and included 25 cents of nonrecurring charges and 10 cents of restructuring. Nonrecurring charges included 16 cents of Rockwell Collins inventory step-up amortization, 6 cents of costs related to the UTC portfolio separation activities and 3 cents of other net charges. Adjusted EPS of US$1.91 was up 8%. First quarter results exceeded expectations primarily due to better than expected Collins Aerospace and Otis results as well as a slightly favorable effective tax rate.
Net income in the quarter was US$1.3 billion, up 4% versus the prior year. Cash flow from operations was US$1.5 billion and capital expenditures were US$363 million, resulting in free cash flow of US$1.1 billion.
In the quarter, Collins Aerospace commercial aftermarket sales were up 64% and up 9% organically. Collins Aerospace commercial aftermarket sales were up 12% on a pro forma basis including Rockwell Collins. Pratt & Whitney commercial aftermarket sales were up 1%. Pratt & Whitney continues to expect commercial aftermarket sales to be up mid-single digits for the full year. Equipment orders at Carrier were down 2% organically in the quarter after being up 10% in the first quarter of 2018. Otis new equipment orders were down 1% at constant currency in the quarter and up 3% on a rolling twelve month basis.
UTC updates its 2019 outlook and now anticipates adjusted EPS of US$7.80 to US$8.00, up from US$7.70 to US$8.00.
