U.S. based United Technologies cutting 11,600 jobs, slashes outlook
March 12, 2009 By The Canadian Press
March 12, 2009, Hartford, Conn. - United Technologies Corp.lowered its 2009 profit forecast on Tuesday and said it expects to cut 11,600 jobs.
March 12, 2009, Hartford, Conn. – United Technologies Corp., which makes Pratt &
Whitney jet engines and Sikorsky helicopters, lowered its 2009
profit forecast on Tuesday and said it expects to cut 11,600 jobs
because of a deteriorating commercial aerospace market.
The moves, part of an expanded US$750-million restructuring
program, are being driven by a decline in expected revenue, which is
now seen totalling $55 billion this year, down $2.7 billion from a
Analysts polled by Thomson Reuters expected $55.2 billion.
United Technologies cut its 2009 earnings per share forecast to
between $4 per share and $4.50 per share, down from its December
outlook of $4.65 to $5.15. Analysts, on average, had expected $4.60,
according to Thompson Reuters.
Last month, United Technologies chief executive Louis Chenevert
stood by December's outlook.
And in early February, as other industrial companies were
reducing their profit outlook, Greg Hayes, the company's chief
financial officer, told analysts that United Technologies officials
felt “pretty good'' about their guidance.
On Tuesday, United Technologies also lowered the amount it would
spend on share repurchases this year to $1 billion from $2 billion.
Tuesday's announced job cuts follow news last month that Pratt &
Whitney Canada planned to lay off up to 1,000 workers in response to
falling business jet orders.
Shares of United Technologies rose 69 cents, or 1.84 per cent, to
$38.25, in pre-market trade on Tuesday.
THE CANADIAN PRESS