United Technologies expanded its share buyback plan by a third and reduced its 2006 acquisition-spending target.

The Hartford, Conn., elevators-and-airplanes conglomerate said it will spend as much as $2 billion on share repurchases this year, but only about $1 billion on acquisitions. The company had previously planned to spend $1.5 billion on buybacks and $2 billion on deals.

During comments at the Morgan Stanley CEOs Unplugged Industrials Conference in Half Moon Bay, Calif., CEO George David reaffirmed the company's 2006 outlook for earnings per share of $3.55 to $3.65 and cash flow from operations after capital expenditures to equal net income for the year.

Shares rose $1.36 to $64.35.