US-based high tech multinational United Technologies Corp has said it expects profits to rise by 6 to 10 percent in 2012.
During a meeting with investors and analysts Thursday, chairman & chief executive officer Louis Chênevert reaffirmed the company’s expectation for 2011 earnings per share of $5.47 on sales of approximately $58 billion.
For UTC’s base business, excluding the impact of the $16.5 billion acquisition of Goodrich Corp, Chênevert also projected 2012 earnings per share of $5.80 to $6.00, up 6 to 10 percent.
The Goodrich acquisition is expected to close in mid 2012. Sales (excluding Goodrich) for 2012 are expected to be $59 to $60 billion, including 2 to 4 percent organic growth.
“We expect 2012 will be a transformational year for United Technologies, as we leverage our new organizational structure to provide additional customer value and complete the acquisitions of Goodrich and of Rolls-Royce’s share of the International Aero Engines joint venture,” Chênevert said.
“In 2012, we expect moderate economic growth driven mainly by emerging markets, and four of our five business units expect solid organic sales growth,” he continued. “Relentless focus on cost reduction and productivity while investing in innovative technologies will position us to grow earnings per share 6 to 10 percent in 2012, excluding Goodrich, despite significant pension and foreign exchange headwinds.
“As the commercial aerospace OEMs increase production, we see tremendous opportunity resulting from the combination of Goodrich and Hamilton Sundstrand. Goodrich’s talented people, complementary products, high aftermarket content, and strong positions on new programs will add to the already strong UTC portfolio,” Chênevert added.
“While we expect the Goodrich acquisition to present headwind in 2012, we believe it will be solidly accretive in 2013.” The closing of the Goodrich acquisition is subject to customary closing conditions, including regulatory and Goodrich shareholder approvals. The transaction with Rolls-Royce is also subject to customary closing conditions, including regulatory approvals.
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