United Technologies Corp.(UTX: News ) 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.
The company noted that additional hourly workforce adjustments may occur during 2009 based on market driven production volume changes.
The company said that the employment reductions will total about18,000 or slightly more than 8% over the two years.
For fiscal 2009, 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. The revised revenue guidance of about $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.
Analysts polled by Thomson Reuters expect the company to report earnings of $4.61 per share on revenues of $55.21 billion for fiscal 2009. Analysts’ estimates typically exclude special items.
The company continues to expect 2009 cash flow from operations less capital expenditures equal to or in excess of net income.
United Technologies also revised share repurchase guidance for the year to $1 billion from $2 billion while preserving the usual acquisitions placeholder of $2 billion.