United Technologies (UTX) Revises FY12 EPS, Revs Outlook Following Goodrich (GR) Acquisition
Tweet
Share
E-mailGet Alerts UTX Hot Sheet
Price: $86.01 --0%
Financial Fact:
Cost of services sold: 2.82B
Today's EPS Names:
SFST, VLTO, CLIR, More
Financial Fact:
Cost of services sold: 2.82B
Today's EPS Names:
SFST, VLTO, CLIR, More
Join SI Premium – FREE
In a meeting with investors and analysts, United Technologies Corp. (NYSE: UTX) today updated its financing plan for the proposed $16.5 billion cash acquisition of Goodrich Corp. (NYSE: GR), including expected proceeds of approximately $3 billion from net divestitures and $1.5 billion from mandatory convertible instruments.
UTC businesses identified for sale include Pratt & Whitney Rocketdyne, Clipper Windpower and the Hamilton Sundstrand Industrial businesses: Milton Roy, Sullair and Sundyne. These businesses are treated as held for sale and have been moved to discontinued operations in UTC's financial statements. Gains realized at the time of closing are expected to be greater than impairment charges in discontinued operations.
"We are taking the opportunity to re-evaluate our portfolio as we enter a transformational stage with the proposed acquisitions of Goodrich and Rolls-Royce's share in the International Aero Engines joint venture," said UTC Chairman & Chief Executive Officer Louis Chenevert. "The proceeds from divestitures of non-core businesses will help minimize the equity issuance and reduce dilution from the Goodrich transaction.
"The Goodrich transaction remains on track for a mid-year close," added Chenevert. "Including Goodrich, we expect United Technologies' EPS from continuing operations in 2012 of $5.30 to $5.50, up 0 to 4 percent."
On the same basis, the company expects 2012 sales of $61 to $62 billion, up 9 to 11 percent and cash flow from operations less capital expenditures to equal or exceed net income attributable to common shareowners. The accompanying tables contain 2011 financial results revised for discontinued operations.
The Street sees EPS of $5.59 and revs of $65.6 billion. At the end of January, United Tech reaffirmed its FY12 EPS outlook of 5.80 to $6.00.
UTC businesses identified for sale include Pratt & Whitney Rocketdyne, Clipper Windpower and the Hamilton Sundstrand Industrial businesses: Milton Roy, Sullair and Sundyne. These businesses are treated as held for sale and have been moved to discontinued operations in UTC's financial statements. Gains realized at the time of closing are expected to be greater than impairment charges in discontinued operations.
"We are taking the opportunity to re-evaluate our portfolio as we enter a transformational stage with the proposed acquisitions of Goodrich and Rolls-Royce's share in the International Aero Engines joint venture," said UTC Chairman & Chief Executive Officer Louis Chenevert. "The proceeds from divestitures of non-core businesses will help minimize the equity issuance and reduce dilution from the Goodrich transaction.
"The Goodrich transaction remains on track for a mid-year close," added Chenevert. "Including Goodrich, we expect United Technologies' EPS from continuing operations in 2012 of $5.30 to $5.50, up 0 to 4 percent."
On the same basis, the company expects 2012 sales of $61 to $62 billion, up 9 to 11 percent and cash flow from operations less capital expenditures to equal or exceed net income attributable to common shareowners. The accompanying tables contain 2011 financial results revised for discontinued operations.
The Street sees EPS of $5.59 and revs of $65.6 billion. At the end of January, United Tech reaffirmed its FY12 EPS outlook of 5.80 to $6.00.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Tesla touts acceleration of new models, but Q1 results fall short of estimates
- Uniti Group (UNIT), Windstream Said To Near $15 Billion Combination - Bloomberg
- Costar Group (CSGP) Tops Q1 EPS by 3c, Offers Guidance
Create E-mail Alert Related Categories
Guidance, Mergers and AcquisitionsRelated Entities
Earnings, United Technologies Corp./Goodrich Corp.Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
