United Tech Unveils $1.5 Bln Restructuring Plan; Sees 2016 EPS In Line With View

(RTTNews) - United Technologies Corp. (UTX) announced $1.5 billion restructuring program and forecasts 2016 profit in line with analysts' estimates.

UTX closed Thursday trading at $93.87, down $0.29 or 0.31%. In after hours, the stock gained $1.63 or 1.74%.

The company said it expects 2015 adjusted earnings per share 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.

On average, 21 analysts polled by Thomson Reuters expect earnings of $6.27 per share for the year. Analysts' estimates typically exclude special items.

" We are now well positioned to deliver results toward the higher end of our previously announced expected EPS range for 2015," President and Chief Executive Officer Gregory Hayes said.

UTC anticipates 2016 adjusted earnings per share of $6.30 to $6.60. The company expects 2016 sales to be $56 billion to $58 billion, with organic growth of 1 to 3 percent. Analysts expects earnings per share of $6.57 per share on revenues of $58.58 billion for 2016.

Additionally, the company said that it 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.