By Alwyn Scott and Amrutha Penumudi

(Reuters) - United Technologies Corp (UTX.N) forecast a slight profit rise next year and announced a $1.5 billion restructuring plan to reduce costs, sending its shares up in extended trading.

The U.S. aerospace and building systems conglomerate said 2016 adjusted earnings will be $6.30 to $6.60 per share on revenue of $56 billion to $58 billion. Most of the EPS gain will come from share buybacks, it noted.

The company also expects 2015 adjusted earnings of $6.20-$6.30 per share, raising the lower end of the previous estimate by 5 cents.

The restructuring will cost about $500 million a year over three years, Chief Executive Officer Gregory Hayes said at an investor and analyst meeting. When completed, the program is expected to generate about $900 million in annual savings, mainly through factory consolidation, Hayes said.

United Technologies shares were up 1.4 percent at $95.20 in extended trading.

While the restructuring and about $2 billion in research and development spending next year could cause GAAP earnings to fall in 2016, it positions the maker of maker Otis elevators, Carrier heating and cooling systems and Pratt & Whitney aircraft engines for longer-term growth, Hayes said.

The company expects slowing in China and weak growth in Latin America and Europe. It also forecasts the dollar at parity with the euro, versus an average of $1.12 per euro this year.

Analysts described the forecast as conservative. But it follows a year in which United Technologies cut its 2015 profit outlook three times and saw its results dented by the strong dollar and pressures in its various businesses.

The Pratt & Whitney division is expected to see a slight rise in sales next year, and it faces rising costs as it ramps up production to about 200 units.

Hayes said United Technologies is focused on "reinvigorating top-line growth" and would tolerate lower profit margins in some areas to increase sales. "We have lost (market) share over the last 10 years," as margins rose to 20 percent from 12 percent, Hayes said.

Analysts expect 2016 earnings of $6.57 per share on a revenue of $58.58 billion according to Thomson Reuters I/B/E/S. They estimate 2015 earnings of $6.27 per share.

United Technologies closed the $9 billion sale of Sikorsky Aircraft to Lockheed Martin Corp (LMT.N) last month. The company said on Thursday it expects to record a $3.3 billion after-tax gain on the sale in the current quarter.

(Reporting by Amrutha Penumudi in Bengaluru and Alwyn Scott in New York; Editing by Savio D'Souza and Cynthia Osterman)