United Technologies Reaffirms 2012 Outlook, Says Cash Will Help Lower Debt

By IndustrialsFOXBusiness

United Technologies (NYSE:UTX) reaffirmed its fiscal 2012 earnings guidance on Friday that brackets Wall Street’s consensus and said strong cash flow will enable the company to pay down debt.

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The Hartford, Conn.-based maker of technology products for the aerospace industry said it expects to earn between $5.25 and $5.35 a share, excluding one-time items, on sales of $58 billion to $59 billion.

Analysts in a Thomson Reuters poll are looking for earnings of $5.31 on sales of $58.58 billion.

In July, the company lowered the full-year forecast from an earlier $5.30 to $5.50, which represents roughly flat year-over-year profit growth.

At a meeting on Friday with investors, UTC Chief Financial Officer Greg Hayes said the company, which manufactures plane components for major jet makers like Boeing (NYSE:BA), continues to expect cash flow from operations, minus capital expenditures, to meet or exceed net income attributable to shareholders.

“Strong cash generation and proceeds from anticipated divestitures will enable us to pay down approximately one-third of the debt issued for the Goodrich acquisition by the end of 2012," he said.

The affirmation comes more than a month after the company posted second-quarter earnings that topped Wall Street expectations and completed its $16.5 billion takeover of Goodrich.