HARTFORD-United Technolgies Corp. is adjusting its estimate of $600 million of restructuring actions in ’09 and pushing the needle up to $750 million in response to expected revenue for this year. As part of these actions, the company will cut 11,600 people from its staff, roughly 5% of its workforce. The producer of ion batteries cites “anticipated 2009 revenues $2.7 billion below [United's] guidance due to contracting markets worldwide,” according to a release.
The guidance earning per share is getting adjusted to $4.00 to $4.50 range, “including $0.30 to $0.40 for the $750 million of total ’09 restructuring costs net of anticipated one-time gains of $200 million to $350 million.
“The outlook for commercial aerospace and global construction markets has continued to deteriorate since UTC’s December investor meeting and the economic recovery previously anticipated in the second half of 2009 now appears unlikely,” says Louis R. Chenevert, president and CEO of UTC, in a statement. “These expanded restructuring actions are required to protect UTC profitability and are expected to position the company for resumed earnings growth in 2010.”
The company did not disclose where the terminations would take-place. UTC includes Carrier heating and air conditioning; Hamilton Sundstrand aerospace systems and industrial products; Otis elevators and escalators; Pratt & Whitney aircraft engines; Sikorsky helicopters; and UTC Fire & Security systems and UTC Power fuel cells. Most of these companies are based in Connecticut.