Helicopter squabble won’t hurt UTX

Article Excerpt

UNITED TECHNOLOGIES CORP. $116 (New York symbol UTX; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 916.7 million; Market cap: $106.3 billion; Price-to-sales ratio: 1.7; Dividend yield: 2.0%; TSINetwork Rating: Above Average; www.utc.com) has amended its deal to build 28 Sikorsky Cyclone helicopters for the Canadian government. The company had planned to deliver these helicopters in 2012, but disputes over prices and support prompted it to suspend the program. It now plans to begin deliveries in 2015. The original contract was worth $4.6 billion. But due to the delays in starting up production, United Technologies will record a one-time charge of $440 million in the second quarter of 2014. However, it feels other unusual gains will offset this charge. As a result, the company still expects to earn $6.65 to $6.85 a share for all of 2014. The stock trades at 17.2 times the midpoint of that range. That’s a reasonable p/e ratio in light of its leading market share in…