NEW YORK, Dec. 10, 2015 /PRNewswire/ -- In a meeting with investors and analysts today, United Technologies Corp. (NYSE: UTX) President and Chief Executive Officer Gregory Hayes will communicate the company's expectation for 2015 adjusted earnings per share (Adjusted EPS*) of $6.20 to $6.30, raising the lower end of the previous range by $0.05. In the current quarter, the company expects to record a $3.3 billion after-tax gain on the Sikorsky divestiture.
UTC anticipates 2016 adjusted earnings per share of $6.30 to $6.60. Sales for 2016 are expected to be $56 billion to $58 billion, with organic growth of 1 to 3 percent.
"I'm proud to say that over the past few weeks, we have closed the $9 billion Sikorsky sale and launched an accelerated share repurchase program to return another $6 billion to our shareholders. We are now well positioned to deliver results toward the higher end of our previously announced expected EPS range for 2015," Hayes said.
The company will announce a $1.5 billion multi-year restructuring plan focused on structural cost reductions in high-cost locations, which is expected to result in $900 million of annualized run-rate savings when completed. Actions under this plan are expected to be implemented through 2018. Restructuring charges in 2015 are now expected to be approximately $400 million, up from the prior expectation of $300 million.
"Our consistent focus on productivity over the years has resulted in a lean SG&A cost base relative to industry peers. This next phase of restructuring will principally focus on further structural cost reductions across the manufacturing base, particularly through footprint consolidation," Hayes said.
"Going forward, we will discuss earnings per share expectations on an adjusted basis that excludes the impact of restructuring and other significant non-operational items," Hayes added. "Continuing to take cost out as restructuring opportunities arise is important for UTC to remain competitive and is the right thing to do for the shareholders."
Today's United Technologies meeting with investors and analysts will be broadcast live on the Internet with the audio and presentation materials available at www.utc.com. The webcast begins at 5 p.m. and an audio recording of the presentation will be archived on the site afterward.
United Technologies Corp., based in Farmington, Connecticut, provides high technology systems and services to the building and aerospace industries. To learn more about UTC, visit the website or follow the company on Twitter: @UTC
* The Adjusted EPS measure will be included in earnings press releases and presentations to investors by webcast. Adjusted EPS will reflect continuing operations and exclude restructuring costs and other significant items of a non-recurring and/or non-operational nature. See management's comments and the schedules included in UTC's earnings press releases and webcasts for additional information as to the items that have been excluded from Adjusted EPS.
This press release includes statements that constitute "forward-looking statements" under the securities laws. Forward-looking statements often contain words such as "believe," "expect," "plans," "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, charges, expenditures, share repurchases 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 industries in which we operate, including financial market conditions, fluctuations in commodity prices, interest rates and foreign currency exchange rates; levels of research and development spending; levels of end market demand in construction and in the aerospace industry; levels of air travel; financial condition of commercial airlines; the impact of government budget and funding decisions on the economy; changes in government procurement priorities and funding; weather conditions and natural disasters; delays and disruption in delivery of materials and services from suppliers; company and customer directed cost reduction efforts and restructuring costs and consequences thereof; the impact of acquisitions, dispositions, joint ventures and similar transactions; challenges in the development and production of new products and services; the impact of diversification across product lines, regions and industries; the impact of legal proceedings, investigations and other contingencies; pension plan assumptions and future contributions; the effect of changes in tax, environmental and other laws and regulations and political conditions; and other factors beyond our control. The level of share repurchases depends upon market conditions and the level of other investing activities and uses of cash. The forward-looking statements speak only as of the date of this press release and we undertake no obligation to update or revise any forward-looking statements as of a later date. For additional information identifying factors that may cause actual results to vary materially from those stated in forward-looking statements, see our reports on Forms 10-K, 10-Q and 8-K filed with or furnished to 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 (860) 728-7062
SOURCE United Technologies Corp.