United Technologies to cut Sikorsky
HARTFORD, Conn. — United Technologies has announced it plans on separating its Connecticut-based Sikorsky Aircraft business as it exits the helicopter business. This announcement comes at the company wants to focus on high-tech aerospace service.
“Our strategic review has confirmed that exiting the helicopter business is the best path forward for United Technologies,” said Gregory Hayes, UTC President and Chief Executive Officer. “Sikorsky is the world’s premier helicopter company and through a series of strategic wins is well positioned for long-term growth. However, separation of Sikorsky from the portfolio will allow both United Technologies and Sikorsky to better focus on their core businesses. Over the coming weeks, we’ll determine whether a spinoff or direct sale is the best way to enhance Sikorsky’s long-term success and create the most value for customers and shareholders.”
The Hartford conglomerate says it will focus on high-technology systems and services to the aerospace and building industries. It says a decision on selling or spinning off Sikorsky will be made by the end of the third quarter.
United Technologies has previously said Sikorsky didn’t fit with plans for long-term growth.
Excluding Sikorsky, United Technologies expects 2015 earnings per share of $6.35 to $6.55 on sales of $58 billion to $59 billion. With Sikorsky, earnings per share are expected at $6.55 to $6.85, from $6.85 to $7.05.
United Technologies expects 10 cents to 20 cents per share of separation costs and a 10-cent per share decline in Sikorsky operations due to oil and gas market weakness.