United Technologies to Cut 11,600 Jobs Worldwide

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United Technologies to Cut 11,600 Jobs Worldwide (Update3)
By Edmond Lococo


March 10 (Bloomberg) -- United Technologies Corp. plans to cut 11,600 jobs as the global recession and credit crunch lead to lower sales and profit than previously projected by the maker of Otis elevators and Carrier air conditioners.

The company also will reduce its share buyback plan by 50 percent to $1 billion, Hartford, Connecticut-based United Technologies said in a statement today.

United Technologies said it is responding to “contracting markets worldwide.” As a result, sales will be about $55 billion this year, or $2.7 billion less than it forecast in December. Chief Executive Officer Louis Chenevert said an economic recovery that the company previously anticipated would start in the second half of this year now “appears unlikely.”

“The scale of this economic downturn has led to this un- surprising capitulation,” Rob Stallard, a New York-based analyst with Macquarie Capital USA, wrote today in a report to clients. He rates the shares “neutral” and doesn’t own any. “We believe it is a more realistic assessment of the challenges” United Technologies faces. .........(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=aixbGXHy.2Z4&refer=home