UPDATE 3-United Tech 2011 forecast below Wall Street view

* Sees 2011 EPS $5.05 to $5.35

* Analysts had looked for $5.30

* Euro is the major variable, CEO says

* Shares down 3 percent after hours
(Rewrites first paragraph; adds CEO, investor comments,
byline; update stock price)

By Scott Malone

NEW YORK, Dec 9 (BestGrowthStock) – United Technologies Corp
(UTX.N: ) set a wide 2011 profit target range, warning that a
fluctuating euro and uncertain global economic recovery could
hamper it from hitting its long-term earnings growth target of
10 percent or more.

The diversified U.S. manufacturer set a forecast range that
implied growth of 7 to 14 percent from estimated 2010 levels,
as it expects overall global economic growth to slow next
year.

“Economic growth in the U.S. and Europe is expected to
remain sluggish,” Chief Executive Louis Chenevert said at an
investor meeting in New York on Thursday.

The U.S. economic recovery will hinge on a pickup in
consumer spending, which has been hampered by “elusive” job
growth, he said.

The world’s largest maker of elevators and air
conditioners, which also makes Pratt & Whitney jet engines and
Sikorsky helicopters, expects a profit of $5.05 to $5.35 per
share in 2011. Analysts’ average estimate was $5.30, according
to Thomson Reuters I/B/E/S.

The forecast included about 15 cents per share of
contingencies, reflecting the risk of a drop in the value of
the euro against the dollar. The company last year generated 23
percent of its sales in Europe.

“Every time the euro moves a little bit, it affects the
company a lot,” said Chenevert.

United Tech shares fell to $75.21 in extended trading, from
a $77.63 close on the New York Stock Exchange.

“Wall Street may have gotten a little bit ahead of itself,
just given where we are in the economic cycle,” said Tim Rich,
portfolio manager at the Golub Group in San Mateo, California,
which holds United Tech shares in its funds.

EMERGING MARKETS STRONG

The company, which also makes Pratt & Whitney jet engines
and Sikorsky helicopters, has higher hopes for China and India,
and expects its emerging markets business to represent 20
percent of sales for the first time next year, Chenevert said.

“They’ll do well in Asia as long as Asia continues” to do
well, Rich said.

United Tech forecast revenue of $56 billion to $57 billion.
Wall Street had forecast $57.11 billion in revenue.

It looks for organic revenue, factoring out the effect of
acquisitions and exchange-rate fluctuations, to rise 3 to 5
percent, he said.

The company forecast mid-single-digit percentage sales
growth at all divisions except for Pratt & Whitney, which faces
sluggish demand from the business jet sector.

The Hartford, Connecticut-based company confirmed its 2010
profit forecast of $4.70 per share.

The company crossed a major milestone this month when
Airbus (EAD.PA: ) said it would offer Pratt & Whitney’s
geared-turbofan (GTF) engine on its next-generation A320. The
company had been working on that project for two decades.

“The announcement on the GTF, first of all, is a very
important statement for Pratt, because it put the Pratt-logo
engine back in the narrow-body segment,” Chenevert, who used to
run the Pratt division being tapped for the top job, told
reporters.

United Tech joins a wave of major U.S. manufacturers that
are spelling out their 2011 expectations to Wall Street. 3M Co
(MMM.N: ) said on Tuesday its revenue growth would be crimped by
weak demand in the United States and Europe, while General
Electric Co’s (GE.N: ) finance unit forecast profit growth in
2011 and 2012 and said it would resume paying a dividend to its
parent company in 2012.

Next week, GE is due to offer its overall corporate
forecast, as will Honeywell International Inc (HON.N: ).

United Tech shares have risen about 12 percent so far this
year, outpacing the 9 percent rise of the Dow Jones industrial
average (.DJI: ), of which it is a component.
(Reporting by Scott Malone; Editing by Gunna Dickson and
Richard Chang)

UPDATE 3-United Tech 2011 forecast below Wall Street view