Tuesday March 10, 01:49 PM
United Technologies to slash 11,600 jobs worldwide
WASHINGTON (AFP) - United Technologies Corp., a US manufacturer of aerospace systems, elevators and helicopters, said Monday it will cut 11,600 jobs worldwide to cope with the global economic slowdown.
UTC president and chief executive Louis Chenevert said in a statement the company would expand its 2009 restructuring by 600 million dollars to 750 million in response to the sharp global slowdown.
The belt-tightening will result in a reduction in global headcount of 11,600 and further blue-collar scalebacks could occur during the year depending on production required by market conditions, he said.
"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," said Chenevert.
Chenevert said the company now expects 2009 revenues 2.7 billion dollars below the company's December guidance "due to contracting markets worldwide."
"These expanded restructuring actions are required to protect UTC profitability and are expected to position the company for resumed earnings growth in 2010. In 2008, UTC anticipated slowing economies for 2009, although not at the severity which has since developed," he said.
UTC revised downward its earnings per share guidance to a range of 4.00 dollars to 4.50 dollars, from a previous guidance it confirmed as recently as last month of between 4.65 and 5.15 dollars.
The company continued to expect cash flow from operations less capital expenditures "equal to or in excess of net income."
The number of job cuts from the 2008-2009 restructuring actions would total approximately 18,000, or slightly more than 8.0 percent of the global workforce of the company, which makes Pratt & Whitney aircraft engines, Sikorsky helicopters and Otis elevators, among other products.
Chenevert said the company expected savings from the two years of restructuring and other 2009 actions of more than one billion dollars in 2009.
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