An analyst today downgraded United Technologies Corp., saying he believes profit will drop next year for the manufacturer of helicopters, elevators, jet engines and other big-ticket products due to the contracting economy and rising value of the dollar.
Analyst Cai von Rumohr of Cowen and Co. said in a note to investors that he’s cutting Hartford-based UTC to “neutral” from “outperform.”
Until recently, the dollar was falling, making U.S. exports more attractive overseas. Revenue for UTC’s international business was $34.16 billion last year, or about 62 percent of total revenue.
Von Rumohr said he expects earnings per share to be between $4.70 and $5.15 next year on revenue of $57.3 billion. Analysts surveyed by Thomson Reuters expect earnings per share to be $5.08 on revenue of $59.3 billion.
UTC, which operate Sikorsky Aircraft, Hamilton Standard, Otis Elevator, Pratt & Whitney jet engine manufacturer and other businesses, has scheduled its 2009 outlook meeting for Thursday.
At 11 a.m., UTC shares traded at $49.30, up 29 cents, or 6 percent.
Analyst Nigel Coe of Deutsche Bank-North America said in a note to investors that he expects UTC and several other industrial companies that have scheduled outlook meetings in the next few weeks to signal more cuts to consensus estimates.
However, “this is not necessarily bad news,” he said. “Indeed, we have been encouraged by the market’s positive response to recent negative stock-specific data points.”
Pratt & Whitney announced last week it has laid off about 350 U.S. employees due to concerns that airlines may delay or cancel orders as the global economy slows. The cuts affect less than 1 percent of the company’s work force of more than 38,000 employees, a spokeswoman said.
About 280 of the layoffs will be at Pratt’s Connecticut operations and the remaining 70 will affect employees in 12 other states. The cuts will affect salaried positions including administrative assistants, engineers and accountants. (AP)
