UTC Chairman & CEO Expects 2012 Earnings Per Share of Approximately $5.32; Expects 2013 EPS of $5.85 to $6.15, Up 10 to 16 Percent on Sales Growth of 10 to 12 Percent
NEW YORK, Dec. 13, 2012 /PRNewswire/ -- In a meeting with investors and analysts today, United Technologies Corp. (NYSE: UTX) Chairman & Chief Executive Officer Louis Chenevert narrowed the company's expectation for 2012 earnings per share to approximately $5.32, from $5.25 to $5.35. The company continues to expect sales of approximately $58 billion. Chenevert also projected 2013 earnings per share of $5.85 to $6.15, up 10 to 16 percent. 2013 sales are expected to be $64 billion to $65 billion, up 10 to 12 percent, including 3 to 5 percent organic growth. The company continues to anticipate cash flow from operations less capital expenditures will exceed net income attributable to common shareowners in 2012 and anticipates it will be equal to or in excess of net income attributable to common shareowners in 2013.
"2012 has been a transformational year for United Technologies," Chenevert said. "We leveraged our organizational structure to optimize our global scale, completed the acquisition of Goodrich and acquired control of the International Aero Engines joint venture, and reshaped our portfolio to focus on our core markets of aerospace and building systems.
"In 2013, UTC's reshaped portfolio will be well positioned for accelerated top line growth," Chenevert continued. "We anticipate organic sales growth at each of our five businesses, even with continued softness in Europe and a decline in U.S. defense spending. We expect sales growth, our relentless focus on cost reduction and productivity, and the incremental benefits from our portfolio transformation to drive 10 to 16 percent earnings per share growth in 2013, despite significant pension headwinds.
"With the portfolio transformation substantially complete, our team is focused on integration and execution," Chenevert added. "This focus will allow us to deliver consistent earnings growth and strong cash flow well into the future."
Today's United Technologies meeting with investors and analysts was broadcast live on the Internet and the audio and presentation materials will be available at www.utc.com. United Technologies Corp., based in Hartford, Connecticut, is a diversified company that provides a broad range of high technology products and support services to the building systems and aerospace industries.
This release is supplemented by presentation materials that are available on UTC's web site at www.utc.com and includes statements that constitute "forward-looking statements" under the securities laws. All financial projections reflect continuing operations unless otherwise noted. Forward-looking statements often contain words such as "believe," "expect," "plans," "strategy," "prospects," "estimate," "project," "target," "anticipate," "will," "should," "see," "guidance," "confident" and similar terms. Forward-looking statements may include, among other things, statements relating to future and estimated sales, earnings, cash flow, financing plans, charges, expenditures, anticipated benefits of acquisitions and divestitures, results of operations, uses of cash and other measures of financial performance. All forward-looking statements involve risks, uncertainties and assumptions that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. Risks and uncertainties include, without limitation, the effect of economic conditions in the markets in which we operate, including the potential impact of governmental austerity or stimulus measures, financial market conditions and availability of credit, fluctuation in commodity prices, interest rates and foreign currency exchange rates; future levels of indebtedness and capital and research and development spending; levels of end market demand in construction and in the aerospace industry; levels of air travel; financial difficulties of commercial airlines; the impact of weather conditions and natural disasters; the financial condition of our customers and suppliers; delays and disruption in delivery of materials and services from suppliers; cost reduction efforts and restructuring costs and savings and other consequences thereof; the scope, nature or impact of acquisitions, dispositions, joint ventures and other business arrangements, including integration of acquired businesses; the timing and impact of anticipated dispositions of businesses; the timing and amount of anticipated gains, losses, impairments and charges related to such dispositions; the timing and impact of anticipated debt reduction following the Goodrich acquisition; the development and production of new products and services; future levels of repurchases of common stock; the anticipated benefits of diversification and balance of operations across product lines, regions and industries; pension plan assumptions and future contributions; the impact of the negotiation of collective bargaining agreements and labor disputes; the outcome of legal proceedings and other contingencies; and the effect of changes in tax, environmental and other laws and regulations and political conditions in countries in which we operate and other factors beyond our control. The completion of the proposed divestitures of businesses is subject to uncertainties, including the ability to secure disposition agreements and regulatory approvals on acceptable terms; the satisfaction of information, consultation, and / or negotiation obligations, if any, with employee representatives; and satisfaction of other customary conditions. These forward-looking statements speak only as of the date of this release and we undertake no obligation to update or revise any forward-looking statements after we distribute this release. For additional information identifying factors that may cause actual results to vary materially from those stated in the forward-looking statements, see our reports on Forms 10-K, 10-Q and 8-K filed with the SEC from time to time, including, but not limited to, the information included in UTC's Forms 10-K and 10-Q under the headings "Business," "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Legal Proceedings" and in the notes to the financial statements included in UTC's Forms 10-K and 10-Q.
Contact: John Moran
SOURCE United Technologies Corp.