Executive Business Briefing

Here is a look at more of Thursday's top business stories:

Earnings jump 54 percent at United Technologies

HARTFORD, Conn., Jan. 16 (UPI) -- United Technologies Corp. said Thursday its fourth quarter net income jumped 54 percent on robust sales of its Otis elevators in Asia and from easier comparisons in the year-earlier period when it took restructuring charges.

United Tech, which also makers the Black Hawk helicopters and Carrier air conditioners, said its fourth-quarter net income jumped to $533 million, or $1.06 a diluted share, from $345 million, or 69 cents a diluted share during the same period a year earlier period.

Last year's results included $126 million in restructuring charges.

Analysts on Wall Street were expecting United Tech to report a net income of $1.04 a share, according to Thomson First Call.

Consolidated revenues for the fourth quarter were $7.2 billion, 3 percent above the prior year, with modest growth across all segments.

George David, chairman and chief executive officer, said, "We closed the year with a solidly up quarter in spite of the weak U.S. economy and an adverse commercial aviation market.

"Reported earnings up 15 percent for the year and free cash flow exceeding net income are impressive accomplishments in these conditions. The cash performance is notable for having been net of a $500 million cash contribution to UTC's pension plans," David said.

The company said operating profit at Otis increased 20 percent from the prior year on 9 percent higher revenues. At constant foreign exchange, operating profit and revenues increased 14 and 5 percent, respectively, with about one-half of the revenue increase from organic growth. The operating profit improvement reflected double-digit growth in Asia and Europe.

Carrier's operating profit was 30 percent above the prior year on 1 percent higher revenues, led by cost reduction actions. Higher volume in transport refrigeration, Latin America and North America residential HVAC and a small divestiture gain were partially offset by continued weakness in commercial HVAC.

Pratt & Whitney's operating profit was up 2 percent on 5 percent higher revenues. Increased Government Engine revenues were partially offset by lower Power Systems and Pratt Canada volumes.

Operating profit in the Flight Systems segment was 14 percent above the prior year on 3 percent higher revenues. Sikorsky's aftermarket and Hamilton Sundstrand's military business were higher in the quarter. These increases more than offset lower sales of Sikorsky helicopters and new commercial aerospace equipment at Hamilton Sundstrand.

Looking ahead, United Tech also reaffirmed its 2003 earnings forecast of $4.55 to $4.80 a share.

Abbott Labs results improve slightly

ABBOTT PARK, Ill., Jan. 16 (UPI) -- Abbott Laboratories Inc. said its fourth-quarter net income rose to $627 million, or 40 cents a share, from $614 million, or 39 cents a share during the same period a year earlier.

The company, whose products include the Flomax prostate treatment and Ensure nutritional supplements, said excluding charges to reflect a decline in the value of investments and for cutting 2,000 jobs, its latest results rose to $866 million, or 55 cents a share, from $816 million, or 52 cents a share a year ago.

On that basis, analysts on Wall Street had expected the company to post a net income of 56 cents a share, according to Thomson First Call.

Abbott said its worldwide sales for the quarter rose 8.9 percent to $4.84 billion from $4.45 billion in the fourth quarter of 2001. Total sales were favorably impacted 0.1 percent due to the effect of exchange rates.

"We were extremely pleased to end 2002 on a very positive note with the earlier-than-expected approval of Humira, our breakthrough treatment for rheumatoid arthritis," said Miles D. White, chairman and chief executive officer.

"This is a drug with proven patient benefits and legitimate blockbuster potential. In addition, Humira represents a significant milestone in the strategic re-positioning of Abbott's pharmaceutical business to include advanced technologies such as biologics. In 2003, one of our top priorities will be to continue to focus on building our scientific capabilities to drive longer-term growth and profitability for our shareholders," White added.

Jones Apparel to close some facilities, cut jobs

NEW YORK, Jan. 16 (UPI) -- Clothing maker and retailer Jones Apparel Group Inc. said it will take a fourth-quarter charge to close some facilities, cut jobs, and convert some of its Enzo Angiolini shoe stores to the company's Bandolino brand.

The company said it will record a fourth-quarter charge of $25.5 million, or 11 cents a share, of which $21.9 million, or 10 cents a share, is non-cash.

Excluding these charges, Jones backed its previous earnings guidance of 48 cents to 50 cents a share for the fourth quarter ended Dec. 31.

Analysts on Wall Street were expecting the retailer to post a net income of 49 cents a share, according to Thomson First Call.

Jones said it plans to close Sun Apparel manufacturing facilities in Torreon, Mexico and warehousing and administrative facilities in El Paso, Texas. The write down of facilities and severance benefits accounts for 3 cents a share in charges.

Jones also plans to regroup 20 of its 47 Enzo Angiolini retail stores under Bandolino, the name of its lower-priced chain, as the Enzo Angiolini stores have not achieved the company's return on its investment goal.

The impact of the change represents 6 cents of a non-cash write down of trademarks totaling 8 cents a share, the company said.

Peter Boneparth, president and chief executive officer, said, "Our continued focus is to improve upon our efficient operating model in order to better support future expansion through both internal growth and acquisitions. By improving productivity in two business units, the actions we are announcing today will help us to accomplish this goal."

The company will report its earnings on Feb. 5.