Company Chairman and CEO Louis R. Chenevert disappointed investors in United Technologies Corporation’s (UTX) annual investor and analyst meeting yesterday with the management’s tepid forecast for fiscal year 2014.
Chenevert said the company is preparing for slower growth in the global economy, particularly in China and other emerging markets in the Asia-Pacific region. UTC expects organic revenues to grow between 3-4% to $64 billion next year, and earnings to be around $6.55-6.85 per share. On the other hand, analysts had expected revenues of $66.3 billion, and $6.84 in per share earnings.
Chenevert said the management has allocated around $2 billion for dividends in 2014. The company has also provisioned $1 billion each for a share buyback program and potential acquisitions.
The company sees increased urbanization and growth in commercial aviation as growth drivers going forward. The management also plans on focusing on relentless cost-cutting and effective cash deployment to increase shareholder value in the company.
Read More : UTX
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