Updated from 2:56 p.m. EDTUnited Technologies ( UTX) reduced its full-year guidance and said it would lay off several thousand workers as the company no longer expects an economic recovery in 2009. The Hartford, Conn., conglomerate said it will cut 11,600 workers in response to global economic conditions. United Tech added that additional workforce reductions may occur later in the year based on market-driven production volume changes. United Tech also trimmed its full-year profit guidance to a range of $4 to $4.50 a share, compared with its previous forecast of $4.65 to $5.15 a share, with 30 cents to 40 cents of one-time restructuring costs anticipated. The company also said it expects one-time gains of $200 million to $350 million. On average, analysts expect United Tech to post full-year earnings of $4.60 a share, according to Thomson Reuters. "The outlook for commercial aerospace and global construction markets has continued to deteriorate ... and the economic recovery previously anticipated in the second half of 2009 now appears unlikely," said CEO Louis Chenevert in a statement. "These difficult actions will allow us to continue outperforming peers." Chenevert also said that savings from its restructuring efforts, dating back to last year, will result in total cost reductions exceeding $1 billion in 2009. Employment reductions are expected to total approximately 18,000, or slightly more than 8% of the staff, over the two years, he said.
United Tech also said it has revised its share repurchase expectations for the year to $1 billion from $2 billion. The company said it will preserve the usual acquisitions placeholder of $2 billion. United Tech shares gained 8.6% to close at $40.79. Among fellow manufacturers on the Dow Jones Industrial Average, Boeing ( BA) finished up 6.5%, General Electric ( GE) gained 19.7% and 3M ( MMM) added 8.1%.