UTC Reports 16-Percent Increase in Second-Quarter Earnings Per Share

July 18, 2001 by Jeff Shepard

United Technologies Corp. (UTC, Hartford, CT) reported a 16-percent increase in second-quarter 2001 diluted earnings per share to $1.16, versus $1.00 in the same quarter of last year. Earnings per share rose 19 percent before the impact of foreign-currency translation, which reduced earnings by $0.03 per share. Net income for the second quarter was $588.0 million, 16 percent above the $509.0 million reported in the second quarter of 2000. Revenues for the quarter were $7.3 billion, five percent higher than the prior year.

Second-quarter available cash flow was $494.0 million. Acquisition spending in the quarter totaled $107.0 million, primarily for aerospace after-market business. During the quarter UTC repurchased 2.1 million shares of stock for $165.0 million, bringing total repurchases in the first half of this year to $365.0 million. The company's debt-to-capital ratio ended the quarter at 38 percent, slightly lower than the end of the first quarter.

Chairman and CEO George David commented, "We thought this was an excellent quarter for UTC given the tougher business conditions across many countries and economic sectors. We continue to anticipate earnings-per-share growth of 15 percent for the year, and available cash flow in line with net income."