Sikorsky Gets $8.4 Million Contract – Analyst Blog

Sikorsky Aircraft Corp., a subsidiary of United Technologies Corp. (UTX), received an $8.4 billion contract from the US Navy for the VH-3D Executive Helicopter special progressive aircraft rework. This is a modification of an existing contract between the US Defense Department and Sikorsky.

 

The work will be performed by Sikorsky for the Naval Air systems Command of Patuxent River, Md. in Stratford, Connecticut and is expected to be completed by August 2011.

 

Through its VH-3D and VH-60N aircraft, Sikorsky has provided the President’s office with a safe and dependable means of transport since 1960s.

 

In April 2010, Sikorsky Aircraft Corporation and Lockheed Martin (LMT) entered into a joint agreement to support US Navy’s revived VXX Presidential Helicopter program. As per the contract, Sikorsky acted as the prime contractor and offered its H-92 medium-lift helicopter for presidential transport. Besides, Lockheed Martin acted as the major supplier of subsystems.

 

United Technologies has strong market positions in aerospace/defense and has a global infrastructure with a portfolio that includes Carrier, Otis, Hamilton Sundstrand, Pratt & Whitney, Sikorsky and Fire & Security. Sikorsky, which accounted for approximately 11.2% of the total revenue, is one of the world’s largest manufacturer of military and commercial helicopters and also provides aftermarket helicopter and aircraft parts and services.

 

The company will be one of the few companies that can take advantage of strategic mergers and acquisitions (M&A) once liquidity is restored and functioning M&A markets re-emerge.

 

United Technologies is a global provider of high technology products and services to the building systems and aerospace industries. The company’s growth has been attributed to acquisitions and to the internal development of existing businesses. The major competitors of United Technologies are Boeing Co. (BA), General Electric Co. (GE) and Honeywell International Inc. (HON).

 

We currently maintain our Neutral rating on United Technologies.