UTC to rid itself of Sikorsky Aircraft

HARTFORD, Conn., June 16 (UPI) -- Sikorsky Aircraft is to be spun off or sold by parent company United Technologies Corp., subject to approval by UTC's board of directors.

The decision follows a strategic company review by UTC which was announced earlier this year.

Sikorsky Aircraft is a premier manufacturer of helicopters, including the UH-60 family of Blackhawks.

"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."

UTC said that UTC expects 2015 earnings per share of $6.35 to $6.55 on sales of approximately $58 to $59 billion, excluding Sikorsky. It expects organic sales growth of 3 to 5 percent and cash flow from operations less capital expenditures in the range of 90 to 100 percent of net income attributable to common shareowners.

"Including Sikorsky, the company now anticipates earnings per share of $6.55 to $6.85, down from the previous expectation of $6.85 to $7.05." it said. "This reduction in the earnings expectation range reflects approximately $0.10 to $0.20 of one-time separation costs along with a $0.10 decline in Sikorsky's operational expectations for the year due to weakness in the oil and gas markets," a customer source for Sikorsky helicopters.