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On Thursday, the new Chief Executive Officer (CEO) of United Technologies Corp (UTC) forecast 2015 profit lower than the average estimate of Wall Street, largely affected by its jet engine business, the Pratt & Whitney.
Greg Hayes debuted as CEO after having been the finance chief for six years, said it would view the company’s portfolio through a “disciplined” manner, after speculations on Wall Street that Hayes might be open in restructuring the company.
Black Hawk helicopter maker, Sikorsky, has been specifically questioned, partially owning to its significantly lower profit margins.
During a conference of investors and analysts in New York, the CEO reiterated that they’re not selling Sikorsky. However, later in the conference, he said that anything can be for sale as long as it has the right price.
UTC shares dropped 1.8% in the aftermarket trading. Hayes added that he wanted to become more aggressive when it comes to acquisitions and to get more involved with his company.
In the next 5 years, a huge jump in production is expected from its Pratt & Whitney, but will hurt profits in 2015. That unit also deals with pressures within its pension plans.
Sales for 2015 are estimated at 66 billion to 67 billion Us dollars, including a 3 to 5% organic growth. The average forecast of analysts was at 67.5 billion or 7.27 dollars per share. Share repurchases are expected at 2 to 3 billion dollars next year. Hayes stated that the stock is undervalued.
