United Technologies Corp., which owns Pratt & Whitney jet engines and Sikorsky Aircraft, expects to cut 11,600 jobs and is lowering its 2009 forecast because of a deteriorating commercial aerospace market.
As of December 2008, it employed about 220,000 people. Additional hourly work force adjustments may occur during 2009 based on market driven production volume changes, the company said in a statement.
The world's largest maker of elevators and air conditioners said on Tuesday it expects to earn $4 to $4.50 per share in 2009, lower than the $4.65 to $5.15 per share it previously forecast. The new forecast includes 30 cents to 40 cents per share of restructuring charges, as well as some expected one-time gains.
CEO Louis Chenevert had said in December that strong backlogs would temper the effects of a rising dollar and deteriorating economic conditions in the second half of 2008. ''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,'' he said in today's statement.
The moves, part of an expanded $750 million restructuring program, are being driven by a decline in anticipated revenue, which is now expected to total $55 billion this year, down $2.7 billion from a December estimate. Analysts had expected $55.2 billion. The job cuts make up some of the more than $1 billion in cost savings generated this year.
United Technologies' extensive portfolio includes Carrier air conditioners, Otis elevators, Pratt & Whitney and Rocketdyne aircraft systems, helicopter-maker Sikorsky and safety-equipment manufacturer UTC Fire & Security.