UTC Reports First Quarter EPS Up 8 Percent to $0.82, Confirms 2007 Outlook.

HARTFORD, Conn., April 18 /PRNewswire-FirstCall/ -- United Technologies Corp. today reported first quarter 2007 earnings per share of $0.82 and net income of $819 million, up 8 percent and 7 percent, respectively, over the year ago first quarter. As previously disclosed, results for the current quarter include a $0.07 per share impact for the previously announced Otis European Union Commission fine, net of related reserves, restructuring charges, and one-time favorable items. Earnings per share excluding these items were $0.89, 17 percent above the year ago period.

First quarter consolidated revenues increased 16 percent to $12.3 billion, reflecting 10 percent organic growth including a better compare at Sikorsky following the strike last year. Foreign currency translation increased revenues by 3 percent and earnings by $0.03 per share in the quarter.

"Although we regret the first quarter Otis European Commission matter, we have had an excellent start to 2007," said George David, UTC's Chairman and Chief Executive Officer. "Commercial aerospace markets remain strong and Sikorsky's shipments have stepped up from last year's lower rates. Apart from the well reported North American housing market, commercial and residential construction demand worldwide remains strong. Otis' first quarter orders for new elevators were up 27 from a year ago and have compounded at 14 annually over the last three years. Comparably, Carrier's commercial air conditioning revenues were up 13 in the quarter and 12 annually over the three years. Accordingly, we confirm our prior guidance for 2007 earnings per share in the range of $4.05 to $4.20 for the year," he added.

Cash flow from operations was $453 million and capital expenditures were $208 million for the quarter. Share repurchase totaled $500 million for the first three months of the year.

"Cash flow from operations less capital expenditures was well below our net income standard on the payment of the Otis European Commission fine and materially higher tax payments in Canada. These two one-time items totaled approximately $500 million," David said. "Additionally, Carrier's inventories built seasonally and aerospace inventories remain high on continued stronger organic growth. We do expect inventory trends to reverse in the second half of the year and as usual to meet our net income standard for cash flow less capital expenditures," he added.

The accompanying tables include information integral to assessing the company's financial position, operating performance, and cash flow.

United Technologies Corp., based in Hartford, …