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New Summary: United Tech 1Q revenue jumps 16 pct

The Associated Press

SOARING AEROSPACE: United Technologies Corp. reports its first quarter revenue rose 16 percent to $14.4 billion, crediting its 2012 purchase of aerospace parts maker Goodrich Corp. Excluding the Goodrich acquisition, sales declined 2 percent from a year ago. The company cited Europe's weak economy and weak commercial aerospace repairs and maintenance.

GROUNDED: Automatic federal budget cuts that took effect last month are beginning to have an impact on United Technologies' military business, with aerospace repairs and maintenance down 10 percent in the quarter. Fighter jets also are standing down as exhibitions are canceled. Chief Financial Officer Greg Hayes said he's concerned about furloughs by air traffic controllers that could drive up commercial airline costs. He says that should be a "relatively small impact" on United Technologies.

FALLING DEBT: United Technologies is raising significant amounts of cash from divestitures as it leaves non-essential businesses such as energy and complies with federal competition rules. It said it will pay down $2 billion of debt this year, up from an earlier $1 billion estimate.