United Technologies To Exit Aircraft Business; Updates 2015 Guidance

(RTTNews) - United Technologies Corp. (UTX) announced it will pursue the separation of the Sikorsky Aircraft business, subject to final Board approval. A decision on whether Sikorsky will be spun off or sold is expected by the end of the third quarter.

"Our strategic review has confirmed that exiting the helicopter business is the best path forward for United Technologies," said Gregory Hayes, UTC President and CEO.

Excluding Sikorsky, the company now expects 2015 earnings per share of $6.35 to $6.55 on sales of approximately $58 to $59 billion. The company continues to expect organic sales growth of 3 to 5 percent and cash flow from operations less capital expenditures in the range of 90 to 100 percent of net income attributable to common shareowners.

Including Sikorsky, the company now anticipates 2015 earnings per share of $6.55 to $6.85, down from the previous expectation of $6.85 to $7.05. The reduction in the earnings expectation range reflects approximately $0.10 to $0.20 of one-time separation costs along with a $0.10 decline in Sikorsky's operational expectations for the year due to weakness in the oil and gas markets.