* Sees 2013 EPS $5.85-$6.15
* See organic sales up 3 percent to 5 percent
* Aims to buy back about $1 bln in shares next year
By Ernest Scheyder
NEW YORK, Dec 13 United Technologies Corp
expects profit to rise about 13 percent next year, with
recovering demand for its systems used in buildings helping to
offset declining U.S. defense spending.
The world's No. 1 maker of elevators and air conditioners,
whose other businesses include jet engines and helicopters, on
Thursday projected 2013 earnings of between $5.85 to $6.15 per
share. At the midpoint would represent a 13 percent rise from
the $5.32 per share it expects to report for 2012.
Analysts, on average, expect 2013 earnings of $6.12 per
share, according to Thomson Reuters I/B/E/S.
That growth will come in the face of an uneven global
economy, Chief Executive Louis Chenevert told investors in New
"The challenging macroeconomic environment will continue,"
Chenevert said, adding that the company expects roughly flat
sales in Europe, with mid-single-digit percentage growth in the
United States and Asia. "The two biggest drivers of the economy
are consumer spending and housing showing signs of recovery and
oil prices that have settled down."
The company also said it plans to buy back about $1 billion
of its shares, though Chenevert said he would like to push that
United Tech expects 2013 revenue to reach $64 billion to $65
billion, an 11 percent rise from the $58 billion it now expects
for 2012. Wall Street had expected sales to reach $66.4 billion
It expects sales of jet engines and other equipment to
commercial airlines and recovering demand from the construction
sector for its Otis elevators and Carrier air conditioners to
offset a decline in sales of military engines and helicopters.
It forecast organic sales -- a measure that excludes the
effect of acquisitions and currency fluctuations -- to rise 3
percent to 5 percent.
This has been an eventful year for the Hartford,
Connecticut-based company. In July, United Technologies closed
its largest-ever acquisition, the $16.5 billion takeover of
aircraft components maker Goodrich. It sold several smaller
operations to help fund the deal after Wall Street objected to
Chenevert's initial financing plan of selling shares.
Having closed those deals, Chenevert said the company is
focused on existing businesses, not pursuing other deals.
"The transformation is essentially complete," he said.
Faced with the uncertainty of the U.S. budget standoff in
Washington, a downturn in Europe and uneven growth in major
Asian economies, big U.S. manufacturers this week have offered
cautious guidance for 2013.
Earlier this week, 3M Co set a 2013 profit target
that would represent growth of about 8 percent and Honeywell
International Inc set one that at its midpoint called
for an 8.5 percent increase.
General Electric Co is due to lay out its
expectations for 2013 on Monday, though the largest U.S.
conglomerate does not make numeric, per-share profit forecasts.
United Tech shares slipped 1 percent to $79.42 in light
post-market trading, from an $80.37 close on the New York Stock
Exchange. The shares are up about 9 percent over the past year,
a touch behind the Dow Jones industrial average, which
has risen 10 percent.