UTC Chairman & CEO Reaffirms Expected 2011 Earnings Per Share; Expects 2012 EPS of $5.80 to $6.00, Up 6 to 10 Percent, Excluding Pending Goodrich Acquisition

NEW YORK, Dec. 15, 2011 /PRNewswire/ -- During a meeting with investors and analysts, United Technologies Corp. (NYSE: UTX) Chairman & Chief Executive Officer Louis Chenevert today 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 previously announced agreement to acquire Goodrich Corp.,   Chenevert also projected 2012 earnings per share of $5.80 to $6.00, up 6 to 10 percent. Including $0.40 of dilution related to the Goodrich acquisition and an additional $0.10 of headwind from the absence of share repurchase, 2012 earnings per share are expected to be in the range of $5.30 to $5.50. The Goodrich acquisition is expected to close in mid 2012. 

Excluding the pending Goodrich acquisition, sales for 2012 are expected to be $59 to $60 billion, including 2 to 4 percent organic growth.  The company continues to anticipate cash flow from operations less capital expenditures will exceed net income attributable to common shareowners in 2011 and anticipates it will be equal to or in excess of net income attributable to common shareowners in 2012.

"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," Chenevert 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," Chenevert 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," Chenevert 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.

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. 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, 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 financial market conditions, 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 expected timing of completion of the recently announced transactions with Goodrich and Rolls-Royce; the development and production of new products and services; the anticipated benefits of diversification and balance of operations across product lines, regions and industries; the impact of the negotiation of collective bargaining agreements, and labor disputes; the outcome of legal proceedings and other contingencies; future availability of credit; pension plan assumptions and future contributions; 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. 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.

UTC-IR

Contact:
John Moran
(860) 728-7062
www.utc.com

SOURCE United Technologies Corp.