Oh, that cursed margin of safety. It's like going to the dentist or getting a physical -- not always pleasant, but it can keep you safe and sound over the long term. So while I've cheered for United Technologies
This diversified industrial conglomerate continues to benefit from good markets in most of its major businesses. Total revenue was up 13%, with 9% growth in organic revenue -- not too shabby. Margins also continued to improve, and the company posted 18% growth in operating profits, along with solid cash flow for the quarter.
You're probably aware of the improving aerospace market, which has certainly helped United Technologies this quarter. Pratt & Whitney and Hamilton Sundstrand both had solid results, and while Sikorsky was weak, it's not your typical aerospace business.
Other businesses such as fire/security and Carrier also did quite well, with the latter still seeing a strong residential market. The Otis elevator business looked a little soft, and guidance was only for mid-single-digit revenue growth. Still, I'd suspect that a sustained improvement in non-residential construction is coming, which should help get this business going, too.
Whether you look at Ingersoll-Rand
Instead of trying to play pick-the-point-in-the-cycle, I'd suggest focusing your efforts on identifying great companies trading at appealing prices. Do that, and you'll achieve your own excellent results over the long run.
For more industrial-strength Foolishness:
Fool contributor Stephen Simpson has no financial interest in any stocks mentioned (that means he's neither long nor short the shares).