UTX Reaffirms 2010 Outlook - Analyst Blog

United Technologies Corp. (UTX) reaffirmed its 2010 earnings per share guidance of $4.70 on sales of $54 billion.  It also guided 2011 earnings per share at $5.05 to $5.35, a year-over-year growth of 7% to 14%.  Revenues for 2011 are expected to be $56 billion to $57 billion, up 4% to 6% from prior-year period reflecting 3% to 5% organic growth.

Pratt & Whitney, a group company, has delivered the first F135 Short Take Off/Vertical Landing engine for the F-35 Lightning aircraft, signifying its commitment to fielding the highly advanced military jet engine technology to the U.S. Air Force. The Pratt & Whitney F135 has made steady progress through the development, testing, validation, full production and sustainment stages.

United Technologies has strong market positions in aerospace/defense and global infrastructure with a portfolio that includes: Carrier, Otis, Hamilton Sundstrand, Pratt & Whitney, Sikorsky and Fire & Security.

United Technologies will be one of the few companies that can take advantage of strategic mergers and acquisitions (M&A) once liquidity is restored and functioning M&A markets re-emerge, which is more likely in the remainder of fiscal 2010.

The company is highly dependent on the U.S. government's budgetary allocation for defense. Its business may also be affected by  risks inherent in government contracting.

The company designs, manufactures and services products that incorporate advanced technologies. The introduction of new products and technologies involves risks, and anticipating the degree or timing of benefits may not be quite feasible.

Pratt & Whitney's Global Services provide maintenance, repair and overhaul services, including the sale of spare parts, as well as fleet management services for large commercial engines. Pratt & Whitney produces engines for wide and narrow body aircraft for the commercial and military markets. Pratt & Whitney also sells engines for industrial applications and space propulsion systems.

United Technologies provides high technology products and services to the building systems and aerospace industries worldwide. General Electric Company (GE) is its major competitor.

We currently have a Neutral recommendation on United Technologies Corporation.

 
GENL ELECTRIC (GE): Free Stock Analysis Report
 
UTD TECHS CORP (UTX): Free Stock Analysis Report
 
Zacks Investment Research