United Technologies Corp. is gearing up for further turbulence in the economy as executives said Wednesday during a conference with analysts they are increasing restructuring costs across its divisions to $300 million from $200 million.
Greg Hayes, UTC’s chief financial officer, confirmed during the call that Sikorsky will face additional cuts beyond the 419 job cuts already announced, but he did not elaborate. Hayes, however, also said the company is increasing its spending on the development of new technologies.
That could soften the blow at Sikorsky, which has a number of new products in development, including the X2 hybrid helicopter, an electric helicopter and a remote controlled Black Hawk.
UTC reported net income of $1.3 billion, or $1.47 per share for the third quarter of 2011 on sales of $14.8 billion. For the year-ago quarter, UTC had net income of $1.2 billion, or $1.30 per share, on $13.6 billion in sales.
The company increased its full-year guidance on earnings to $5.47 a share from its top range guidance of $5.45.
Shares of UTC had dropped $1.07 to $73.05 heading into the final 45 minutes of trading Wednesday.
The company shored up its pension obligations, noting its now 90 percent funded, and continues to increase cost cutting in the face of uncertainty in the global economy.
Specifically, Hayes said high unemployment in the U.S., continuing financial crisis and debt problems in Europe remain a concern.
Here are some of the segment highlights:
Sikorsky delivered 73 helicopters in the quarter and an operating profit of $215 million on sales that were up 21 percent from a year ago.
Otis Elevator operating profit was $731 million on sales of $3.2 billion.
Carrier operating profits were $422 million on $3.1 billion in sales.
Pratt & Whitney was $525 million on $3.2 billion in sales.