Financial Mines

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Archive for the ‘Sikorsky’ Category

Sikorsky develops automated oil rig approach system

Monday, May 6, 2013 by:Rob Varnon

An S-92 flies out of the factory in Stratford on its way to the Gulf for oil rig duty. Contributed photo.

Stratford-based Sikorsky Aircraft won FAA approval for Rig Approach, a new system the helicopter maker has developed with its customer PHI Inc. to help pilots land safely on deep-sea oil rigs.

It’s an automated system the two companies have been developing since 2007. It reduces the workload of a pilot during approach of an oil platform and is expected to be helpful during bad weather and improve overall safety. PHI, which flies a lot of Sikorsky helicopters, transports employees and supplies to oil rigs in the Gulf of Mexico, Sikorsky said a pilot with the company approached a Sikorsky pilot about developing the system and the two companies teamed up on something that’s brand new to the industry.

“Automated rig approach had never been done before so the FAA had no basis on which to compare it, said Ron Doeppener, Sikorsky’s project pilot, in a release. “We couldn’t go to the FAA regulators and say we’re certifying this according to existing data. We’re writing the book on it, working with the operator and the FAA.”

The new system was tested by the FAA in February and Sikorsky will now be able to provide it as an option on its S-92 aircraft. It can also be retrofitted onto older S-92s.

“The… system is one of the most intuitive and innovative systems I have ever flown,” said Paul Perkins, chief pilot for PHI, who said it in a press release, will aid in difficult approaches taking some of the burden off of pilots.

The system is also expected to be available for the new S-76D now in development. Both the 92 and 76 are popular for use in the oil production business and the company is not sure what pricing point it will set for the system.

“We are still establishing market brand pricing for new and existing customers. It is too early to estimate how many customers will buy it, but we believe it will be a very desirable capability,” said Marianne Heffernan, a Sikorsky sp0keswoman.

The added feature will presumably be available on the S-92 variant Sikorsky and Lockheed are entering in the contest for the next presidential helicopter.

Sikorsky is a unit of Hartford-based UTC.

Sikorsky sales down 7 percent as military cuts weigh on profits

Tuesday, April 23, 2013 by:Rob Varnon

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.

Sikorsky delivers Polish-built Black Hawks to Colombians

Monday, March 25, 2013 by:Rob Varnon

Colombia Army pilots finishing their flight from CT to home in new S-70i Black Hawks

Late last week, Sikorsky Aircraft announced the Colombian Army formally inducted five new Sikorsky S-70i multi-mission helicopters into its fleet. Colombia is the first South American country to buy the S-70i Black Hawk helicopter variant from Sikorsky Aircraft, a subsidiary of United Technologies Corp.
“We are honored by the trust the Colombian Armed Forces continue to place in Sikorsky, and in the Black Hawk aircraft as the country’s utility helicopter of choice,” said Jennifer Caruso, Sikorsky Vice President of Army and Air Force Programs.

The aircraft were accepted during a Feb. 11 ceremony in Tolemaida attended by Colombian President Juan Manuel Santos and Defense Minister Juan Carlos Pinzon.

Built at Sikorsky’s aircraft manufacturing facility in Mielec, Poland, the five aircraft were custom-equipped in the United States for the Special Forces of the Colombian Army’s Air Assault Division.

Sikorsky’s S-70i line is being produced in Poland to tap the the European market, which analysts say is more friendly to firms that have a presence in one of the old countries.

But Connecticut still played its part as the Colombian pilots trained in Stratford before taking control of the aircraft.

A team of Colombian pilots and maintainers flew the five aircraft from Connecticut 4,334 miles via Central America to the Army Special Operation Aviation Military base in Tolemaida, arriving Jan. 30 following 10 days of flight.

Boeing Sikorsky unveil helicopter of the future

Thursday, February 28, 2013 by:Rob Varnon

Boeing and Sikorsky said Thursday they have the U.S. Military’s helicopter of the future.

Sikorsky Boeing JMR conceptual rendering. Contributed art.

The aviation giants have teamed up to pursue the Army’s Joint Multi-Role contract and will offer up a new breed of helicopter based on Sikorsky’s X2.

The X2 is Sikorsky’s experimental helicopter which operates with counter rotating rotors on top of the aircraft and a pusher propeller in the back. Boeing and Sikorsky are offering their plan for Phase 1 of the JMR Technology Demonstrator program.Winning this competition could mean billions of dollars in business as the plan is to use one type of aircraft for multiple branches and platforms.

“The Sikorsky-Boeing proposal will demonstrate how X2 Technology with counter-rotating coaxial main rotors and a pusher propeller, and advanced fly-by-wire system, will deliver efficient 230-knot cruise airspeed, improved hover efficiency, and weight optimized design in an affordable package,” said Samir Mehta, president of Sikorsky Military Systems. “By leveraging our proven design, we can offer the Army reduced risk, a 100-knot improvement in speed, a 60 percent improvement in combat radius and 50 percent better high-hot hover performance.”

“The Sikorsky-Boeing team for JMR TD is truly a team of equals,” said Leanne Caret, vice president and general manager of Boeing’s Vertical Lift division. “Sikorsky will take the lead role in this JMR TD Phase 1 proposal, and Boeing will take a lead role for Phase 2, for the mission systems demonstrator program.

“Our companies are fully committed to the long term nature of the Future Vertical Lift initiative and we will contribute equally in terms of capital, technological capability and risk on our path to the FVL with the Army,” said Caret.

Proposals for JMR TD Phase 1 are due to the U.S. Army Aviation Applied Technology Directorate by March 6, 2013. The Army is expected to announce its selection of one or more winning bids in late 2013. Demonstrator aircraft are expected to fly in 2017.

U.S. Army Chief of Staff plans to push out Black Hawk deliveries

Friday, February 22, 2013 by:Rob Varnon

Defense News is reporting today that U.S. Army Chief of Staff Gen. Ray Odierno has signed a plan to deal with sequestration that would include extending the Black Hawk fleet modernization program by three to five years.

Sikorsky is currently sitting on a five year, $8.5 billion contract to build the new fleet of Black Hawks. Extending delivery dates would mean fewer helicopters per year for the Stratford helicopter maker, though analysts have pointed out changing the contract terms could force the Pentagon to pay penalties.

The plan is not yet official, but appears to be the one the Pentagon is prepared to follow if it must.

Automatic spending cuts, called sequestration are set to begin being phased in next month. Pentagon spending under sequestration would be trimmed by $500 billion during the next 10 years.

However, there is some expectation that the full force of sequestration will not be unleashed as Congress will eventually do something to stop full implementation later this year.

For more on the situation, visit http://www.defensenews.com/article/20130222/DEFREG02/302220018?utm_source=twitterfeed&utm_medium=twitter

Black Hawk provides Sikorsky cover against sequestration

Thursday, February 21, 2013 by:Rob Varnon

AP file photo of UTC CEO and Chairman Louis Chenevert

With concerns over sequestration hanging over his Sikorsky Aircraft, Pratt & Whitney and UTC Aerospace systems subsidiaries, Louis Chenevert, chief executive officer and chairman of United Technologies, said the company is prepared for a 10 cent hit to earnings per share in a worst case scenario.

Chenevert, speaking at the Barclays Conference, was in step with his CFO Greg Hayes, who spoke a week earlier at another conference espousing similar expectations that automatic defense spending cuts will happen in D.C. as Congress fails to reach a deal over the budget.

But UTC isn’t expecting catastrophe from sequestration for Sikorsky or Pratt.

“Sikorsky locked up Black Hawk volumes on multi-year 8,” Chenevert said, of the $8.5 billion deal the Stratford helicopter maker announced in July 2012. “We got five years of volume.”

He said he doesn’t expect much impact on UTC from sequestration in 2013, but a 10 cent impact on earnings per share was possible in a worst case scenario. This would still be withing the company’s financial guidance, however.

Overall, the top executive at UTC said, “I’m pleased with the programs we are on.”

Besides Black Hawk, he specifically mentioned the 53K, which Sikorsky is building for the Marines and the Joint Strike Fighter, which Pratt is the sole provider of engines and which UTC’s Aerospace division makes a variety of components for.

Analysts at Forecast International and The Teal Group have both said the Black Hawk is viewed as a must have contract for the military as is the 53K, which is for the Marines and is the Pentagon’s only new program.

Chenevert said he does expect impact on the afterparts business for the military.

During the conference, Chenevert also addressed concerns about the Canadian maritime helicopter deal and was in

Sikorsky Aircraft's Black Hawk gate in Stratford. The company installed the helicopter in February of 2012 and today, a multi-year contract to produce it is hoped to insulate the company from major defense budget cuts looming on the horizon. Staff photo by Brian Pounds

line with analysts, who have said despite fines and penalties, the Cyclone would ultimately provide a stage to show off the military variant of Sikorsky’s S-92.

“We are fully committed,” he said, to building “the most capable helicopter in the world”

While the company works with the Canadians over details of the contract, Chenevert was confident the Cyclone would be a win for Sikorsky and UTC.

“Other countries see what the helicopter is doing and salivate about it,” he said.

And while there has been talk about the delays and fines to the program, he noted that aircraft 26 of 28 is already on the line and being built. Four of the aircraft have been delivered and maintenance training has started in Canada.

Sikorsky Aerospace taps Texas firm for State Department contract

Tuesday, February 19, 2013 by:Rob Varnon

Sikorsky Aerospace Services, the Shelton-based aftermarket service arm of Sikorsky Aircraft, has picked Texas-based S-TEC/ Cobhman Commercial systems to do the advanced avionics work on the S-61 modernization program for the State Department.

Sikorsky, a subsidiary of Hartford-based United Technologies, won a contract to provide up to 110 S-61s to the State Department in 2010. The re-worked helicopters will be used to transport passengers and cargo worldwide.

“Sikorsky’s S-61 helicopter has a 50-year legacy of reliably performing missions for the U.S. and foreign allied militaries. With its rugged endurance, spaciousness, and lift capabilities, the modernized S-61 aircraft can be outfitted to meet a wide variety of requirements. It provides superior value for a mid-size multi-mission helicopter,” said John Johnson, Director, Commercial Customer Support and S-61 Programs. “We are pleased to work with Cobham, which has a solid reputation for innovation and system performance in harsh conditions.”

Decommissioned legacy S-61 aircraft are being converted into a modernized S-61T fleet that incorporate a full array of system upgrades for enhanced mission performance. The IDIQ serves as a contracting vehicle for any U.S. Government agency to purchase the modernized S-61T variant. The integrated avionics package features large-format synthetic vision flight displays, advanced flight management capability, integrated Engine Indication and Crew Alerting System (EICAS), dual digital audio/radio control display units, dual VHF navigation, and communication radios.

“Cobham Commercial Systems is excited to be part of Sikorsky’s modernization of the S-61 helicopter” said Roger J. Smith, General Manager, Cobham Commercial Systems, Mineral Wells. “We are proud to have been selected to enhance the mission performance of Sikorsky’s S-61T aircraft with Cobham’s intuitive 21st century cockpit.”

Sikorsky in financial tussles with Canadians and U.S.

Tuesday, February 12, 2013 by:Rob Varnon

Stratford-based Sikorsky Aircraft is facing up to $80 million in fines from the Canadian government, Reuters reported this week, if the helicopter maker can’t get the Canadians to accept delivery of the new Cyclone, search and rescue helicopter.

UTC reported that Sikorsky had taken a $157 million charge related to delays in this program in the fourth quarter, already.

Sikorsky signed a $5 billion deal to develop 28 search and rescue helicopters to the Canadians almost eight years ago, but the program has seen a number of delays, some due to changes made by the customer. The Canadians, however, do have four of the helicopters, but have not signed official paperwork accepting delivery, though they are training in them.

According to the contract with the Canadians, if the government does not take official delivery of the aircraft, Sikorsky would have to pay the fine.

In the meantime, a long-running dispute with the U.S. Government over prices Sikorsky charged it between 1999 and 2004, might get settled soon. The feds said Sikorsky overcharged the government for a number of parts, but Sikorsky filed an appeal with the courts and final arguments were held in January. At least that’s what Sikorsky’s parent company, United Technologies said in a filing this week and what court documents from the case say.

If the government prevails, Sikorsky could be on the hook for $94 million.

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