On Wednesday, United Technologies Corp reported profit for the fourth quarter that exceeded estimates of Wall Street analysts as the building systems and aerospace manufacturer lowered its costs to counter a global economy that has become sluggish.
UT’s adjusted earnings ended the quarter at $1.53 per share, the company announced in a prepared statement on Wednesday. That compares to analyst estimates of $1.52 per share. Sales ended just over $14.3 billion, which misses the average estimates by analysts of more than $15.3 billion.
United Technologies CEO Gregory Hayes has had to contend with the high costs of a new program for jet-engines in Pratt & Whitney and a slowdown within the Otis elevator business across china
Since he took the helm of the company that is based in Farmington, Connecticut, he has tried to reshape it around the building and aerospace markets, while shedding its helicopter division Sikorsky.
United Technologies in December announced a restructuring plan of $1.5 billion to lower expenses in locations that are high cost, as the business looks to withstand the effects of a strong dollar and headwinds in the global economy.
Hayes said that in line with the company’s strategic priorities for 2015, it took decisive actions in streamlining its portfolio.
In addition, streamlined said Hayes was the organizational structure and it initiated a restructuring plan of $1.5 billion to improve its competitiveness.
Profit for the full year of 2016 will be between $6.30 and $6.60 per share, said the company, which has reaffirmed a forecast released earlier. Sales will be between $56 billion and $58 billion said company officials.
United Technologies saw its shares drop by 16% during 2015, which was more than the drop of 0.7% by the S&P 500 Index.
The company sold Sikorsky its helicopter division during 2015, which helped to streamline the business and eliminate costs.