United Technologies to separate helicopter business
15 June 2015
United Technologies Corp has announced plans to separate its Connecticut-based Sikorksy Aircraft business as it exited helicopter business.
According to the Hartford conglomerate, it would focus on high-technology systems and services to the aerospace and building industries.
It added a decision on selling or spinning off Sikorsky would be taken by the end of the third quarter.
United Technologies had earlier said Sikorsky did not fit its long-term growth plans.
Excluding the helicopter business, United Technologies expects 2015 earnings per share at $6.35 to $6.55 on sales of $58 to $59 billion.
With Sikorsky, earnings per share expected to come in at $6.55 to $6.85, from $6.85 to $7.05.
According to estimates, the separation costs is likely to work out to between 10 and 20 cents per share. It further expected a 10-cent per share decline in Sikorsky operations due to oil and gas market weakness.
According to the company, the decision came following a review of strategic alternatives announced earlier this year and would need final board approval.
According to a Reuters report last week, the board discussed its options after receiving several offers for Sikorsky, including one that would combine the company with the Bell Helicopter unit of Textron Inc.
Prospects of a deal had also attracted Lockheed Martin Group and Boeing Company.
According to chief executive Gregory Hayes' statement Sikorsky was well positioned for long-term growth and that separating it from the portfolio would allow both United Technologies and Sikorsky to better focus on their core businesses.
Sikorsky earlier this month announced 1,400 job cuts and consolidation of facilities.