United Technologies Corp. has reported fourth quarter and full year 2018 results above expectations and announced an outlook for continued sales, earnings and free cash flow growth in 2019.
Full year sales of US$66.5 billion were up 11% over the prior year, including 8 points of organic sales growth, 1 point of net acquisitions impact and 1 point of foreign exchange tailwind. The remaining 1 point of growth was driven by the adoption of the new Revenue Standard and the absence of a customer contract settlement incurred in 2017.
Full year GAAP EPS of $6.50 was up 14% versus the prior year and included US$1.11 of net restructuring charges and other significant items, including a US$692 million tax charge primarily related to undistributed foreign earnings. Adjusted EPS of US$7.61 was up 14%.
Net income for the year was US$5.3 billion, up 16% versus the prior year. Cash flow from operations was US$6.3 billion and capital expenditures were US$1.9 billion, resulting in free cash flow of US$4.4 billion.
