Sikorsky sales down 7 percent as military cuts weigh on profits

|

Sikorsky Boeing JMR conceptual rendering. Contributed art.

Sikorsky announced during the first quarter it will team with Boeing to go after the U.S. military’s joint multi-role helicopter contract Contributed art.

Stratford-based Sikorsky Aircraft actually delivered more helicopters in the first quarter of this year than a year ago, but sales revenue was down 7 percent to $1.24 billion, the aircraft maker’s parent corporation reported Tuesday.

United Technologies, the parent of Sikorsky, Pratt & Whitney and several of the most recognized industrial and aerospace brands in the world, reported combined  net income rose 7 percent of $1.3 billion, or $1.39 per share, from $1.2 billion, or $1.31. UTC said much of its gains came from its commercial business and it expects reductions in military spending to affect its defense business going forward.

Sikorsky delivered 30 military helicopters in the quarter, down 4 from last year, but doubled its commercial craft deliveries to 10 from a year ago. The helicopter maker’s margin on its massive contract with the Pentagon for Black Hawks has been reset, according to the company, as part of sequestration.

In the first quarter, Sikorsky took $5 million in restructuring costs and, while its operating profit was $90 million in the quarter, that reflects a 32 percent drop from a year ago.

Shares of UTC lost 78 cents to finish the day at $92.86 Tuesday.

 

Rob Varnon

Comments are closed.