United Tech sees sales rising with Goodrich buy
HARTFORD, Conn. (AP) — United Technologies Corp. said Thursday that the addition of aircraft-parts maker Goodrich Corp. will help it overcome Europe's weak economy and reduced U.S. defense spending next year.
At its annual outlook meeting, the parent of jet-engine maker Pratt & Whitney, Otis elevator and other companies said it expects revenue next year to be between $64 billion and $65 billion. That's short of what Wall Street expects but still more than 10 percent higher than 2012 revenue, which is expected to be $58 billion.
CEO Louis Chenevert credited the Hartford, Conn., company's $18.4 billion purchase — its biggest ever — of Goodrich for propelling revenue growth.
"In 2013, UTC's reshaped portfolio will be well-positioned for accelerated top-line growth," he said.
Chenevert repeated the company's pledge to resume share repurchases in 2013, spending $1 billion after suspending buybacks in September 2011 to focus on the Goodrich deal. But he hinted that could double eventually.
"One could say that we've done certainly $2 billion or around $2 billion repeatedly. I would say that that's probably a proper expectation," he said.
He said he continues to look for companies to buy but doesn't see "anything big on the horizon."
United Technologies tightened its 2012 profit outlook to $5.32 per share, from a previous range of $5.25 to $5.35, matching Wall Street expectations. It expects to make $5.85 to $6.15 per share next year. Analysts expect $6.15 per share on revenue of $66.13 billion, according to FactSet.
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