Advertisement
YOU ARE HERE: LAT HomeCollections

{United Technologies slashes 2009 profit forecast 13%} {The maker of Otis elevators and Sikorsky helicopter reverses its optimism of a month ago. It also will cut 11,600 jobs.}

March 11, 2009|Associated Press

HARTFORD, CONN. — United Technologies Corp., saying the downturn in its core markets is worse than expected, cut its 2009 profit forecast 13% on Tuesday and will eliminate 11,600 jobs, or 5% of its global workforce.

The announcement by the maker of Otis elevators and Sikorsky helicopters reverses the guarded optimism of a month ago.

The company now says the markets for commercial aerospace and global construction have worsened since December as worldwide construction and aerospace orders slowed.

"We intend to be fully prepared for a deeper and longer deterioration of market conditions," Chief Executive Louis Chenevert told analysts at a conference in New York.

The company reduced its 2009 earnings-per-share forecast to $4 to $4.50, from its outlook in December of $4.65 to $5.15 a share.

Since issuing the initial guidance, United Technologies' restructuring costs have soared to $750 million for 2009 from $150 million.

United Technologies shares rose $3.23 to $40.79 as the broader market surged.

Advertisement
Los Angeles Times Articles
|
|
|