Cites Global Economic Uncertainty, Fewer Airline Spare Parts Orders

Against a backdrop of ongoing global economic uncertainty and fewer orders for spare parts on the part of the world's airlines, United Technologies has cut its annual sales forecast even while its third quarter profit rose.

The Hartford, CT-based conglomerate says it expects full-year sales to be in the range of $58 billion, down about a billion dollars from its previous forecast. United Technologies Chief Executive Louis Chenevert said in an interview with the Wall Street Journal that Europe continues to be a "real challenge," and that while the U.S. economic recovery had begun, "it is going to be a slow recovery."

The bottom line was boosted by the company's recent acquisition of Goodrich, but its Pratt & Whitney division profit fell by 18 percent in the third quarter in part due to U.S. defense cuts. Chenevert also said that those cuts hurt its Sikorsky helicopter business.

On the plus side, company reported that UTC Aerospace Systems, which includes Goodrich and Hamilton Sustrand, saw revenue double and earnings up 33 percent.

FMI: www.utc.com