United Technologies Corp., which manufacturers heating and ventilating equipment as well as jet engines, on Wednesday reported a 20 percent increase in profit for the third quarter, crediting strength in all its businesses except Carrier, which is pressed by the deteriorating housing market.

Net income in the July-September period rose to $1.2 billion, or $1.21 per share, from $1 billion, or 99 cents a share, a year earlier.

That was better than the $1.16 expected by analysts surveyed by Thomson Financial.

Revenue for the quarter that ended Sept. 30 totaled $13.86 billion, up 14 percent from $12.16 billion in the same quarter last year.

The Hartford-based conglomerate controls brands including Carrier, Otis, Pratt & Whitney and Sikorsky. It also has fire and fuel cell divisions.

United Technologies increased its revenue forecast for the year to $54 billion from its previous outlook of $53 billion. Per-share earnings are expected in the range of $4.22 to $4.25, at the top end of the company’s previously stated range of $4.15 to $4.25.

Profit rose at double-digit rates in all businesses except Carrier “as markets in general remain healthy and cost reductions continue,” George David, chairman and chief executive, said in a statement.

Still, its shares fell $2.82, or 3.5 percent, to $76.83 in midmorning trading.

Paul Nisbet, an analyst at JSA Research Inc. in Newport, R.I., said the investors appeared to be punishing United Technologies for the company’s outlook for 2008, which he said was “rather lukewarm.”

Greg Hayes, vice president of accounting and finance, told analysts in a conference call that the commercial aerospace market “looks to remain strong” even as aftermarkets slow. He added that emerging markets were likely to expand at “perhaps a more modest rate”

Hayes said United Technologies’ aerospace business has “plenty of opportunities for investment.” He cited a deal announced last week for a new Pratt & Whitney jet engine by Japanese machinery maker Mitsubishi Heavy.

But investments in the engine product and Hamilton-Sundstrand systems on the Boeing 787 “will put pressure on earnings growth” at Pratt & Whitney and Hamilton-Sundstrand, Hayes said.

Carrier, which manufactures heating, ventilating and air conditioning equipment, reported profit at $420 million, down from $430 million in the third quarter of 2006.

David called market conditions in Carrier’s North American residential business “clearly challenging,” though he said its other three global businesses delivered double-digit earnings growth.

Hayes said in the conference call that strong earnings growth for Carrier in building systems, residential and light commercial, international and refrigeration businesses more than offset soft residential business in the United States.

The company reiterated Carrier’s full-year guidance of $150 million in earnings growth despite continued deterioration in the U.S. residential market.

At helicopter manufacturer Sikorsky Aircraft, profit jumped to $103 million from $70 million in the same quarter last year. It was the second consecutive quarter of significant gains for Sikorsky.

For the first nine months of the year, net income was $3.16 billion, or $3.19 a share, on revenue of $40 billion. That compared with profits of $2.87 billion, or $2.84 a share, on revenue of $35 billion in 2006.

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