UTC's Earnings Will Likely Rise on Strong Commercial Aviation Demand Despite Flat U.S. Military Spending

Partially offsetting this growth from commercial aviation and U.S. housing market, the flat-to-declining military spending from the U.S. government will likely weigh on the company?s second quarter results. In addition, like in the previous quarter, restructuring charges could weigh on UTC?s profits in the second quarter. However in our view, margin expansion driven by these restructuring activities will benefit UTC over the long term.