NEW YORK – During a meeting with analysts today, United Technologies Corp. (NYSE: UTX) Chairman & Chief Executive Officer Louis R. Chênevert reaffirmed the company’s expectation for 2010 earnings per share of $4.70 on sales of $54 billion. Chênevert also projected 2011 earnings per share of $5.05 to $5.35, growth of 7 to 14 percent. Sales for 2011 are expected to be $56 billion to $57 billion, up 4 to 6 percent from prior year on 3 to 5 percent organic growth. The company anticipates 2010 cash flow from operations less capital expenditures in excess of net income attributable to common shareowners and 2011 cash flow from operations less capital expenditures equal to or in excess of net income attributable to common shareowners.
“Proactive structural cost reductions and exceptional execution have positioned UTC for solid conversion on sales growth in 2011, even as we increase strategic investments in game-changing technologies,” Chênevert said.
“In 2011, we expect continued broad end market improvement, with particular strength in emerging markets and commercial aerospace aftermarket,” Chênevert continued. “Five of the six businesses expect solid organic sales growth even with a moderate outlook for the North American and European commercial construction markets. Sales growth combined with restructuring benefits, productivity gains, and effective capital allocation will enable solid earnings growth in 2011, even as we face higher pension, tax, and engineering & development costs.
“Our global market leading franchises, experienced management team, ACE operating system, presence in high-growth markets, and continuing commitment to technology position UTC well for solid top-line and bottom-line growth in the future,” 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 sales, 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 deterioration or extended weakness in global economic conditions; 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.