United Technologies Corp., which makes Pratt & Whitney jet engines and Sikorsky helicopters, lowered its 2009 profit forecast on Tuesday and said it expects to cut 11,600 jobs because of a deteriorating commercial aerospace market.
The moves, part of an expanded $750 million restructuring program, are being driven by a decline in expected revenue, which is now seen totaling $55 billion this year, down $2.7 billion from a December estimate.
Analysts polled by Thomson Reuters expected $55.2 billion.
United Technologies cut its 2009 earnings per share forecast to between $4 per share and $4.50 per share, down from its December outlook of $4.65 to $5.15. Analysts, on average, had expected $4.60, according to Thompson Reuters.
Last month, United Technologies Chief Executive Louis Chenevert stood by December’s outlook.
And in early February, as other industrial companies were reducing their profit outlook, Greg Hayes, the company’s chief financial officer, told analysts that United Technologies officials felt “pretty good” about their guidance.
On Tuesday, United Technologies also lowered the amount it would spend on share repurchases this year to $1 billion from $2 billion.
Tuesday’s announced job cuts follow news last month that Pratt & Whitney Canada planned to lay off up to 1,000 workers in response to falling business jet orders.