United Technologies Corp. President and Chief Executive Officer Louis R. Chenevert announced $600 million of additional restructuring actions for 2009 and now expects restructuring for the year to total $750 million. These actions will result in global employment reductions of 11,600, primarily from overhead and SG&A reductions throughout UTC. Additional hourly workforce adjustments may occur during 2009 based on market driven production volume changes. The expanded restructuring responds to anticipated 2009 revenues $2.7 billion below the company’s December guidance due to contracting markets worldwide.
Earnings per share guidance is being revised to a range of $4.00 to $4.50, including $0.30 to $0.40 for the $750 million of total 2009 restructuring costs net of anticipated one-time gains of $200 million to $350 million. Consistent with prior guidance, the earnings per share range excludes the impact of acquisition-related costs, if any, resulting from the adoption of SFAS 141. The revised revenue guidance of approximately $55 billion also includes $1 billion from the first-time adoption of EITF Issue No. 07-1, which covers revenues associated with engine collaboration agreements. The company continues to expect 2009 cash flow from operations less capital expenditures equal to or in excess of net income.
