Compressed Air Best Practices - March 2009 - (Page 48)

® | 03/09 Columns ENERGY MANAGEMENT | WALL STREET WATCH CHARLOTTE, NC — January 21, 2009 — SPX Corporation (NYSE:SPW) today announced its 2009 annual financial guidance. “We believe the company is well-positioned to meet the challenges ahead, including the uncertain economic environment,” said Chris Kearney, President, Chairman and CEO of SPX. “In response to the current state of the global economy, we are initiating a number of restructuring actions for 2009 totaling as much as $65 million. We believe this positions us well given current conditions and continues our strategy of simplifying our business structure for the future.” Kearney said the company is committed to its long-term strategy of focusing on the three global end markets of global infrastructure, tools and diagnostics and process equipment. He also emphasized SPX’s strong financial position. “Our available liquidity of over one billion dollars will provide us flexibility in making strategic capital allocation decisions. Our disciplined approach to capital allocation continues to generate positive returns as our recent share repurchases and the integration of the APV acquisition are helping to mitigate the economic and currency translation headwinds we face in 2009,” he added. The 2009 annual financial guidance for SPX includes: Revenues are expected to decline between 7% and 12% to approximately $5.3 to $5.6 billion. Organic revenues are expected to be flat, down 5% from 2008, while divestitures and the impact of currency fluctuations are expected to reduce reported revenues by approximately 2% and 5%, respectively. Earnings from continuing operations are expected to be $5.40 to $5.80 per share, down 10% to 16% from 2008. The company expects to incur $65 million, or approximately $0.85 per share, in restructuring charges in 2009. These charges are primarily focused on cost reductions in response to the slowing global economy. Operating cash flow from continuing operations is expected to be in the range of $330 million to $370 million, while capital expenditures are targeted at $100 million. The resulting free cash flow target (cash flow from continuing operations less capital expenditures) is expected to be in the range of $230 million to $270 million. This performance represents 85% to 95% conversion of expected net income. HARTFORD, CT — January 21, 2009 — United Technologies Corp. (NYSE:UTX) today reported fourth quarter 2008 earnings per share of $1.23 and net income of $1.1 billion, up 14% and 8%, respectively. Consolidated revenues for the quarter at $14.5 billion were lower than last year by 1%, with 3 points of organic growth more than offset by 5 points of adverse foreign exchange translation. Cash flow from operations was $2 billion and, after capital expenditures of $406 million, substantially exceeded fourth quarter net income. Full year earnings per share of $4.90 and net income of $4.7 billion increased 15 and 11 %, respectively, from 2007 results. Revenues increased 7% to $58.7 billion, including 5 points of organic growth, 1 point foreign exchange, and 1 point net acquisitions. Full year cash flow from operations was $6.2 billion and capital expenditures were $1.2 billion. “UTC had a solid close to 2008 in spite of deteriorating end markets and currency headwinds. Solid margin expansion at the aerospace units and at UTC Fire & Security offset the impact of a sharp decline at Carrier,” said UTC President and CEO Louis Chênevert. “Balance works at UTC. While Carrier saw organic revenue decline 7% in the quarter, all other units reported organic growth with Sikorsky at an exceptional 25%. New equipment orders at Otis declined 14% in the quarter, including 6 points from the stronger dollar. On a similar basis, Carrier’s Commercial HVAC new equipment orders were down 7% (foreign exchange 3 points). Commercial aerospace spares orders in the quarter were just below sales at Pratt & Whitney and just above sales at Hamilton Sundstrand. 48 www.airbestpractices.com “We remain confident that UTC’s strong global franchises and experienced management team will continue to outperform even in this environment.” — Louis Chenevert, UTC President and CEO http://www.airbestpractices.com

Table of Contents Feed for the Digital Edition of Compressed Air Best Practices - March 2009

Compressed Air Best Practices - March 2009 Contents From the Editor Utility-Air News Compressed Air Audit of the Month Air Standards Assessment Improves Electroplater Production and Saves Energy Demand-Side System Optimization Seven Sustainability Projects for Industrial Energy Savings Personal Productivity Resources for Energy Engineers Wall Street Watch Advertiser Index Classifieds

Compressed Air Best Practices - March 2009

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