Elevator, aerospace sales dent United Tech

It’s the largest aerospace acquisition since 2012, when United Technologies bought Goodrich Corp. for more than $16 billion.

In the earnings statement, CEO Gregory Hayes said: “With six months of trends behind us, it is now clear the commercial aftermarket at UTC Aerospace Systems will be significantly below our expectations for the year”.

United Tech, where posses lessened 7.1% following the business organisation also advised second-quarter outcomes, on Monday put it would probably offer its Sikorsky heli device to effectively Lockheed Martin Inc (LMT.N) for $9b, after saying in June it desired to way out your business making use of a required general info.

Along with the Sikorsky deal, United Technologies’ board approved a plan to repurchase as many as 75 million shares, or about $8.3 billion based on July 17’s closing price.

Last month, the company cut its 2015 earnings forecast due to a combination of separation costs for Sikorsky and operational challenges resulting from weakness in the oil and gas markets.

With the fate of Sikorsky settled, Hayes said the company was ready to turn its focus to acquisitions, and was “looking at everything from $500 million to $5 billion”. “This solid growth contributed to a 6 per cent increase in EPS on a constant currency basis, excluding the impact of gains and restructuring”.

United Technologies Corporation’s revenues, hurt by the strong dollar, missed analysts’ expectations in the second quarter, even as earnings per share beat analysts’ projections. Second-quarter per-share profit was $1.73, topping the $1.72 average of 14 estimates compiled by Bloomberg.

Otis orders in China fell 10% for the quarter.

“Through the first half of the year, the businesses delivered 3 percent organic sales growth in what continues to be a slow growth global economy”.

The company’s Otis division, which makes elevators and escalators, will record 2015 operating profit of $300 million to $350 million less than in 2014, Hayes said.

Further, the company lowered its outlook for sales from continuing operations to a range of $57 billion to $58 billion, from the prior range of $58 billion to $59 billion.

UTX closed Monday’s trading at $110.48.