Hartford industrial conglomerate United Technologies Corp. is scheduled to offer guidance for 2009 late today amid the most challenging economic conditions in decades, and analysts are braced for bad news.
Mark Demos of Fifth Third Asset Management in Minneapolis said the company that makes Sikorsky helicopters, Otis elevators, Pratt & Whitney jet engines and other big-ticket industrial products will likely offer a cautious outlook.
“They should lower the bar pretty good,” he said in an interview. “People are pretty much lowering expectations. Investors want companies to be honest and upfront.”
UTC Chief Executive Louis Chenevert, who will lead his first outlook session since he was elected to the top job in April, took the helm in a very different climate. UTC’s first-quarter earnings were up 26 percent as a weak dollar boosted profit throughout the business.
About six months later, even as the economy’s slide became more steep, United Technologies on Oct. 8 boosted its quarterly dividend by more than 20 percent, signaling its confidence in earnings growth.
But more recently the dollar has strengthened, putting pressure on exporters such as UTC. Revenue for UTC’s international business was $34.16 billion last year, representing about 62 percent of total revenue. (AP)
