In a meeting with investors and analysts, United Technologies Corp have updated its financing plan for the proposed $16.5 billion cash acquisition of Goodrich Corp
United Technologies businesses identified for sale include Pratt & Whitney Rocketdyne, Clipper Windpower and the Hamilton Sundstrand Industrial businesses: Milton Roy, Sullair and Sundyne. These businesses are treated as held for sale and have been moved to discontinued operations in UTC’s financial statements. Gains realised at the time of closing are expected to be greater than impairment charges in discontinued operations.
UTC Chairman & Chief Executive Officer Louis Chênevert said;
We are taking the opportunity to re-evaluate our portfolio as we enter a transformational stage with the proposed acquisitions of Goodrich and Rolls-Royce’s share in the International Aero Engines joint venture. The proceeds from divestitures of non-core businesses will help minimize the equity issuance and reduce dilution from the Goodrich transaction.
On the same basis, the company expects 2012 sales of $61 to $62 billion, up 9 to 11 percent and cash flow from operations less capital expenditures to equal or exceed net income attributable to common share owners. The accompanying tables contain 2011 financial results revised for discontinued operations.