Chocks away
Chopper sales strong
Sikorsky Aircraft Corp. was the lone United Technologies Corp. division to increase revenue between the second and third quarters, as the helicopter maker neared resolution of a massive contract with Canada that has hit a snag.
The Stratford-based manufacturer is the largest employer in Fairfield County with roughly 8,300 workers; parent UTC is the largest employer in Connecticut, also owning aircraft-engine maker Pratt & Whitney and avionics maker Hamilton Sundstrand. UTC has 2,400 jobs worldwide this year, and plans to eliminate another 1,300 positions in the current restructuring.
Last week, UTC named Hamilton Sundstrand’s President David Hess to replace Stephen Finger as head of Pratt & Whitney, following Finger’s retirement. Alain Bellemare, who heads Pratt & Whitney’s large Canadian operations, becomes head of Hamilton Sundstrand.
Sikorsky has been largely immune to the parent restructuring, as sales topped $1.4 billion and profits reached $133 million in the third quarter. The company shipped 40 military helicopters and 17 commercial helicopters during the quarter, and the company improved its profit margins as it began delivering updated Black Hawk military helicopters.
Sikorsky is close to moving ahead on a $3 billion contract to deliver nearly 30 helicopters to Canada that are based on its H-92 model, after a prominent Canadian minister questioned the cost assumptions of the contract.
“It is a big issue; we have been working very, very closely with the Canadian government,” said Gregory Hayes, chief financial officer of UTC, in a conference call with analysts in mid-October “We will be late delivering the helicopters, as everyone knows, but at the end of the day we’re going to deliver the best Sikorsky helicopter the world has known when this contract is done.”
Sikorsky hit two technical milestones during the quarter – the first test flight of its X2 prototype helicopter, which it hopes to sell to the U.S. Air Force; and the first flight of its mainstay Black Hawk military helicopter using “fly-by-wire” controls to electronically command flight controls, rather than hydraulics. The technology is expected to result in reduced weight aboard helicopters, improving performance.
The drag on the economy had little impact on Sikorsky, according to Hayes, save for the hiccup in a purchase of a single helicopter which the company expects to complete in the current quarter.
Other UTC divisions were affected, however, including Otis Elevator Co. after a Las Vegas casino canceled an expansion plan. UTC also ended its unsolicited bid for ATM-machine maker Diebold Inc.
“There was a little bit of excitement here, when (we saw) commercial paper rates spike for a couple of days of that week,” Hayes said. “But really, since then our access to commercial paper is still very strong.”
Add Comment
0 Comments