NEW YORK – During a meeting with analysts today, United Technologies Corp. (NYSE: UTX) President and Chief Executive Officer Louis R. Chênevert reaffirmed the company’s expectation for 2009 earnings per share of $4.10. Chênevert also projected 2010 earnings per share of $4.40 to $4.65, growth of 7 to 13 percent. Revenues for 2010 are expected to be $54 billion to $55 billion, up 2 to 4 percent from prior year on zero to 2 percent organic growth, with foreign currency translation and the net impact of acquisitions/divestitures (1 percent each). The company anticipates 2009 cash flow from operations less capital expenditures in excess of net income attributable to common shareowners and 2010 cash flow from operations less capital expenditures equal to or in excess of net income attributable to common shareowners.
“Exceptional execution, aggressive restructuring, and strategic capital allocation have positioned UTC to resume earnings growth in 2010 even in the face of continuing difficult end markets,” Chênevert said.
“In 2010, we expect continued challenges in the North American and European commercial construction and commercial aerospace OEM markets,” Chênevert continued. “However, some recovery in our short cycle commercial businesses, our strong aftermarket content, continued strength in the military businesses, and benefits from a weaker U.S. dollar will allow us to grow the top line modestly. Lower net restructuring costs, productivity gains, and savings from 2008 and 2009 restructuring expenditures will enable all six operating divisions to expand margins in 2010.
“Our global market leading franchises, experienced management team, ACE operating system, and significant investments in key technologies and markets will lead UTC to continue to outperform, especially when markets recover,” Chênevert added.
United Technologies Corp., based in Hartford, Connecticut, is a diversified company that provides a broad range of high technology products and support services to the building systems and aerospace industries.
This release is supplemented by presentation materials that are available on UTC's website at www.utc.com, and includes "forward looking statements" concerning expected revenue, earnings, cash flow, share repurchases, restructuring; anticipated benefits of UTC’s diversification, cost reduction efforts and business model; and other matters that are subject to risks and uncertainties. These statements often contain words such as “expect”, “anticipate”, “plan”, “estimate”, “believe”, “will”, “should”, “see”, “guidance” and similar terms. Important factors that could cause actual results to differ materially from those anticipated or implied in forward looking statements include further deterioration or extended weakness in global economic conditions; further tightening or extended contraction in credit conditions; the impact of volatility and deterioration in financial markets on overall levels of economic activity; declines in end market demand in construction and in both the commercial and defense segments of the aerospace industry; fluctuation in commodity prices, interest rates, foreign currency exchange rates, and the impact of weather conditions; and company specific items including the impact of financial market volatility and deterioration on the financial strength of customers and suppliers and on levels of air travel; the availability and impact of acquisitions; the rate and ability to effectively integrate these acquired businesses; the ability to achieve cost reductions at planned levels; challenges in the design, development, production and support of advanced technologies and new products and services; delays and disruption in delivery of materials and services from suppliers; labor disputes; and the outcome of legal proceedings. The level of share repurchases may vary depending on the level of other investing activities. For information identifying other important economic, political, regulatory, legal, technological, competitive and other uncertainties, see UTC's SEC filings as submitted from time to time, including but not limited to, the information included in UTC's 10-K and 10-Q Reports under the headings "Business", "Risk Factors", "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Cautionary Note Concerning Factors that May Affect Future Results", as well as the information included in UTC's Current Reports on Form 8-K.