United Technologies profit beats on Rockwell Collins boost

(Reuters) - United Technologies Corp reported a higher-than-expected quarterly profit on Tuesday, boosted by robust demand for aircraft parts at one of the producers better placed to ride out the fallout of this year’s Boeing 737 MAX groundings.

UTC, whose stock has risen 10 percent since the fatal crash in Ethiopia in March, said it is benefiting from better-than-expected performance of its recently acquired aero parts maker Rockwell Collins.

Sales in the unit which houses Rockwell Collins and is the company’s biggest, jumped about 71 percent to $6.51 billion, as a growing fleet of aircraft boosts demand for spare parts.

Rockwell Collins, now combined with UTC’s aerospace systems, makes engine components, interior and exterior aircraft lighting, aircraft seating, landing gear, wheels and brakes, and provides spare parts, overhaul and repair services.

“We made significant progress this quarter on the integration of Rockwell Collins and saw excellent performance from the combined Collins Aerospace business,” Chief Executive Officer Gregory Hayes said.

UTC, which also makes Otis elevators and Carrier air conditioners, said it was on track to separate into three companies in the first half of 2020, leaving the company focused on its aerospace units through Collins Aerospace and the Pratt & Whitney engines business.

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