Report: Sikorsky could be spun off/sold from United Technologies

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Sikorsky Aircraft could be sold or spun off from United Technologies, Defense News reported Monday, citing unnamed sources.

Employees leave Sikorsky Aircraft during a shift change in Stratford, Conn. on Thursday June 27, 2013. Photo: Christian Abraham, File Photo

Employees leave Sikorsky Aircraft during a shift change in Stratford, Conn. on Thursday June 27, 2013. Photo: Christian Abraham, File Photo

The Stratford-based company, which specializes in military-type helicopters, has faced headwinds as the U.S. winds down two big wars and governments around the globe have tightened their defense spending.

The company would likelier be unloaded as a tax-free spinoff than through an acquisition or merger, Defense News reported.

John Moran, a spokesman for the Hartford-based United Technologies, declined to comment in a phone interview Monday evening.

“We don’t comment on market rumors,” he said.

Sikorsky had a global workforce of about 15,800 people, more than 8,400 of whom work in Connecticut, after laying off about 400 people from its hourly workforce last summer.

Last week, in its fourth-quarter earnings report, United Technologies said that Sikorsky brought in about $6.25 billion in revenue for 2013, a drop of 7.9 percent. Operating profit for the year was down more than 16 percent, to $594 million. All told, Sikorsky accounted for about 10 percent of United Technologies’ overall revenue of $62.6 billion, Reuters noted.

The New York Times underscored in its report that the discussions are preliminary and that a deal may not result.

Shares in United Technologies were up 1.78 percent to $113.79 on Monday, while the S&P 500 was down slightly.

 

Categories: General
Tim Loh

2 Responses

  1. Veritas says:

    Losing Sikorsky would be the second terrible blow to the skilled workforce remaining in Connecticut. The first came with closure of the Avco engine plant in Stratford, which boasted an unequaled and skill level in its workforce.

  2. Billy bob says:

    Ten percent profit
    Not enough, I guess for the LIBERAL DEMOCRATS who run United Technologies