United Tech Slashing 11,600 Jobs; Cut Guidance Too (UTX)
United Technologies Corp. (NYSE: UTX) is trading higher on what would have been considered bad news in other economies or in different times. The company announced an additional $600 million of restructuring actions for 2009 to now come to a…
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
These cuts are primarily from overhead and SG&A and additional hourly workforce reductions may occur based on market-driven production volume changes.
The company anticipates 2009 revenue of $55 billion (including $1 billion in first time adoption of engine collaboration agreements), which is actually about $2.7 billion below the December guidance. Earnings are also now expected to be $4.00 to $4.50 EPS for the year, although that includes $0.30 to $0.40 for the $750 million restructuring costs (net of anticipated one-time gains of $200 million to $350 million).
First Call has 2009 estimates at $4.61 EPS before items and revenues are expected to be $55.2 billion. Those numbers have come down over the last quarter from analysts, so it looks like the company’s guidance is just catching up to where the Street already expected.
The company continues to expect 2009 cash flow from operations less capital expenditures equal to or in excess of net income. UTC also revised share repurchase guidance for the year to $1 billion from $2 billion while preserving the usual acquisitions placeholder of $2 billion.
Shares are actually up almost 2% at $38.25 before the open. It just hit a new 52-week low yesterday and its 52-week high was $75.86.
JON C. OGG
Contact [email protected] for any questions or corrections.
Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.
McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.
His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.
A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.
TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.
McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.
