United Technologies Corporation (NYSE:UTX) Q1 2015 Earnings Conference Call - Final Transcript
Apr 21, 2015 • 09:00 am ET
Good morning and welcome to the United Technologies First Quarter Conference Call. On the call today are Greg Hayes, President and Chief Executive Officer; Akhil Johri, Senior Vice President and Chief Financial Officer; and Paul Lundstrom, Director Investor Relations. This call is being carried live on the Internet and there is a presentation available for download from UTC's website at www.utc.com.
Please note the Company will speak to results from continuing operations except where otherwise noted. They will also speak to segment results adjusted for restructuring and one-time items as they usually do.
The Company also reminds listeners that the earnings and cash flow expectation and any other forward-looking statements provided in this call are subject to risks and uncertainties. UTC's SEC filings, including its 10-Q and 10-K reports provide details on important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements.
Please go ahead, Mr. Hayes.
Okay. Thank you and good morning, everyone. As you guys saw in the press release today, UTC reported Q1 earnings per share of $1.58, that's up 20% versus prior year and up 7% excluding the impact of restructuring and one-time items. Foreign exchange had an unfavorable impact of $0.07 in the quarter, which equates to about 5% on year-over-year earnings. So a good start to the year.
We also benefited from a few timing items that Akhil and Paul will walk you through in a second. Sales of $14.5 billion were up 3% organically led by solid growth at Climate, Controls & Security and UTC Aerospace Systems, which were up 6% and 7% respectively on an organic basis. Segment operating margins expanded by 20 basis points to 15.6% despite a 40 basis point headwind from pension. For the full year, we continue to expect earnings per share of $6.85 to $7.05.
With that, let me turn it over to Akhil and Paul to take you through the results in detail, and I will be back and give you some thoughts on the quarter and the remainder of the year before we get into the Q&A. Akhil?
Thanks, Greg. Turning to Slide 2, organic sales grew 3% in the quarter and that's on top of the 5% organic growth we saw in the same quarter last year. In the commercial businesses, we saw 6% growth in the Americas helped by the ongoing US economic recovery. Asia also grew by 6%, and Europe was up slightly in the quarter. On the aerospace side, defense sales were flattish and commercial grew by 3%, with aftermarket growth of 2% at Pratt and 4% at UTC Aerospace Systems. Sikorsky's commercial business was down 26% as lower oil prices negatively impacted demand for helicopters and aftermarket in the oil and gas segment.
Taking a closer look at our end markets on Slide 3, and just a reminder, we'll talk to the commercial business orders on a constant currency basis as we usually do. Although there are some puts and takes, overall