Aerospace Losses Contribute To Dour Forecast
The conglomerate that owns such
notable aerospace companies as Sikorsky, Pratt & Whitney,
Rocketdyne and Hamilton Sundstrand will cut 5 percent of its global
workforce this year, the latest victim of a staggeringly awful
United Technologies Corp. announced Tuesday it will shed 11,600
jobs from all divisions this year, as the company revised its
once-optimistic forecast of an economic recovery this year.
"The outlook for commercial aerospace and global construction
markets has continued to deteriorate," Louis Chenevert, president
and CEO, told the Wall Street Journal.
It wasn't long ago UTC expressed much different sentiments.
As ANN reported in January, the company was
lauded for its impressive performance in 2008; Sikorsky, in
particular, posted 25 "organic growth" over the previous year,
which helped offset downturns in other segments of UTC's
At the time, Chenevert predicted the economy at large would be
on the path to recovery by the second half of 2009... but evidence
now indicates that's just not going to happen. "Now I don't believe
there's going to be a recovery in '09," Chenevert said.
While aerospace will likely perform better than other UTC
companies like Otis Elevator and Carrier air conditioners -- both
tied to the slumping housing and construction sectors -- almost all
industries in United Technologies' diversified portfolio are
expected to take a hit.
After projecting strong growth in shipments for 2009 just three
months ago, Pratt & Whitney now hopes engine deliveries in 2009
will be flat, and not drop further... as the market for business
aircraft continues its freefall.
"These are tough things you'd rather not do, but it was
important to get out there and be aggressive and proactive,"
Chenevert said of the planned layoffs, which are expected to be
focused on administrative and sales staff.
Sikorsky remains one bright spot for UTC, with expected
shipments up to 15 percent higher in 2009 thanks to demand for
helicopters for the military and offshore oil platform