United Technologies Corp. (UTX) predicted the addition of
Goodrich Corp. (GR) and the absence of share buybacks next year
would pressure earnings in 2012, though it expected profit would
grow excluding that takeover, despite revenue below analysts'
estimates.
The aerospace and building controls specialist predicted
earnings of $5.80 to $6 from its base business excluding Goodrich,
which it expects to acquire in the middle of the year. United
Technologies also projected sales between $59 billion and $60
billion, also excluding any effect from Goodrich.
Analysts surveyed by Thomson Reuters are forecasting $5.90 in
earnings and $62.09 billion in revenue.
However, factoring in dilution from the Goodrich takeover as
well as a headwind from a lack of share repurchases, the company
predicted earnings would be $5.30 to $5.50 a share.
Chairman and Chief Executive Louis Chenevert said the
company--which makes of Otis elevators, Pratt & Whitney
aircraft engines and Carrier air-conditioning systems--expects next
year to be transformational, as it operates under a new
organizational structure and completes the acquisitions of Goodrich
and Rolls-Royce Holdings PLC's (RR.LN, RYCEY) share of an engines
joint venture.
He predicted four of the company's five business units would
report "solid organic sales growth" in 2012.
"Relentless focus on cost reduction and productivity while
investing in innovative technologies will position us to grow
earnings per share 6% to 10% in 2012, excluding Goodrich, despite
significant pension and foreign exchange headwinds," he said.
The $16.4 billion Goodrich takeover, unveiled in September,
expands United Technologies aerospace business, a sector with
expanding sales and margins.
In the third quarter, United Technologies earnings rose and it
raised 2011 earnings guidance, even though it noted that demand in
some markets was weakening.
United Technologies shares closed Thursday up 36 cents at $73.53
and weren't active after hours.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com