United Technologies Buybacks May Top $1 Billion Target
United Technologies Corp. (UTX) is on pace to top its $1 billion stock-buyback target for this year as Chief Executive Officer Louis Chenevert rewards investors after completing the largest aerospace takeover in history.
The maker of Pratt & Whitney jet engines and Otis elevators will buy back $350 million of shares in each of the first and second quarters, Chief Financial Officer Greg Hayes said today at an analyst meeting in New York.
The repurchases follow a yearlong pause to conserve cash after the $16.5 billion acquisition of Goodrich Corp. in 2012. While United Technologies, based in Hartford, Connecticut, will re-evaluate the pace midyear, both Hayes and Chenevert have said they hope to buy back more than $1 billion of stock in 2013.
United Technologies affirmed its full-year forecast today for earnings per share of $5.85 to $6.15 on sales of $64 billion to $65 billion. U.S. military spending cuts that took effect on March 1 will reduce the company’s profit by 10 cents a share this year, matching earlier guidance, Hayes said.
United Technologies climbed 0.4 percent to $93.45 at the close in New York. The shares have gained 14 percent this year, surpassing a 9.6 percent increase by the Standard & Poor’s 500 Index.
To contact the reporter on this story: Tim Catts in New York at email@example.com
To contact the editor responsible for this story: Ed Dufner at firstname.lastname@example.org