logo
Share SHARE
FONT-SIZE Plus   Neg

United Technologies Updates FY12 Outlook - Quick Facts

United Technologies Corp. (UTX) updated its financing plan for the proposed $16.5 billion cash acquisition of Goodrich Corp. (GR), including expected proceeds of approximately $3 billion from net divestitures and $1.5 billion from mandatory convertible instruments.

UTC businesses identified for sale include Pratt & Whitney Rocketdyne, Clipper Windpower and the Hamilton Sundstrand Industrial businesses: Milton Roy, Sullair and Sundyne. These businesses are treated as held for sale and have been moved to discontinued operations in UTC's financial statements. Gains realized at the time of closing are expected to be greater than impairment charges in discontinued operations, United Technologies said.

Including Goodrich, the company now expects earnings from continuing operations in 2012 of $5.30 to $5.50 per share, up 0 to 4 percent. On the same basis, the company now expects 2012 sales of $61 billion to $62 billion, up 9 to 11 percent and cash flow from operations less capital expenditures to equal or exceed net income attributable to common shareowners.

Analysts polled by Thomson Reuters expect the company to report earnings of $5.59 per share on revenues of $65.56 billion for fiscal 2012. Analysts' estimates typically exclude special items.

While announcing the fourth-quarter results, the company maintained its 2012 forecast for earnings in a range of $5.80 to $6.00 per share, up 6 to 9 percent from last year, for its base business excluding the pending Goodrich transaction. The company maintained full-year sales forecast between $59 billion and $60 billion.

United Technologies agreed in September last year to acquire aerospace components and systems supplier Goodrich for $127.50 per share in an all-cash deal valued at $18.4 billion, including net assumed debt of $1.9 billion. The acquisition is expected to close in mid-2012.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
American Express Co. said that beginning in April 2018, card members will not be required to sign receipts for their credit card purchases. The company thus joins other major card companies such as Mastercard Inc. and Discover Financial Services Inc., who have previously announced similar changes. Costco members can now enjoy MoviePass subscription service and Fandor streaming service for $89.99. The subscription will be for one year. The offer will be available on Costco website for up to December 18. The annual subscription will offer access to Fandor's library of more than 5000 films and... A Houston woman has said that Spirit Airlines Inc. kicked her family off a flight Friday morning as she did not immediately stop breastfeeding her 2-year-old son. Mei Rui, a concert pianist and cancer researcher, said she was asked by flight attendants to stop breastfeeding her son and put him into his own seat for takeoff.
comments powered by Disqus
Follow RTT