Aerospace and industrial conglomerate United Technologies reduced its guidance for some businesses and told investors Thursday that it will divest assets worth $3 billion as part of its planned $16.5 billion cash acquisition of Goodrich.
Shares of United Technologies (UTX) were off 0.37%, or 32 cents, to $86.49. Goodrich (GR) shares declined 43 cents, or 0.34%, to $126.
United Technologies CEO Louis Chênevert said “the Goodrich transaction remains on track for a mid-year close” and that the company expects earnings per share from continuing operations in 2012 of $5.30 to $5.50, up 0 to 4 percent.
“We are taking the opportunity to re-evaluate our portfolio as we enter a transformational stage with the proposed acquisitions of Goodrich and Rolls-RoyceÂs share in the International Aero Engines joint venture,” he said.
The company said the following businesses are for sale, and are considered discontinued operations: Pratt & Whitney Rocketdyne, Clipper Windpower , and three Hamilton Sundstrand Industrial businesses: Milton Roy, Sullair and Sundyne.
The CEO called the purchase of Clipper wind power in 2010 a mistake, according to this Reuters story, in which he says,
“We bought into this business with a thought that there was going to be a renewable energy mandate in this country, and there has not been one. The market, as everyone knows, is stagnating.”
United Technologies said operating profit at Pratt & Whitney could decline between $25 million and $50 million; its previous forecast was for the unit’s profits to be flat or decline to up to $50 million. It the largest unit of the diversified company, at roughly $13.4 billion in sales, with Otis elevator coming in at $12.4 billion, and Carrier at $12 billion, according to company statistics online.
The company also reduced its guidance for its Hamilton Sundstrand unit. But it expects profit at Sikorsky Aircraft, the helicopter unit, to be better than previously thought: up $50 million to $75 million this year, up from $25 million.
