a relative used to wire the cockpits before getting a cushy inspector job at the company.
it will be a miracle if this new ceo finds a domestic buyer and gets approval to sell this division.
United Technologies says weighing possible Sikorsky spinoff
Updated 10:05 pm, Wednesday, March 11, 2015
Sikorsky Aircraft and the U.S. Navy celebrate the delivery of the 100th Sikorsky-built MH-60R Seahawk helicopter and the near completion of the 200th MH-60S Seahawk helicopter at their headquarters in Stratford, Conn.
HARTFORD, Conn. (AP) — United Technologies said Wednesday it is weighing options for its Sikorsky Aircraft division, including a possible spinoff of the maker of Black Hawk and other military and commercial helicopters.
The Hartford, Connecticut, company said it hasn't set a timetable for any action regarding Sikorsky and that there's no guarantee it will spin off the unit.
Sikorsky accounted for about $7.5 billion of United Technologies' total sales of $65 billion last year. The conglomerate's other divisions include jet engine manufacturer Pratt & Whitney and Otis elevator.
The company is looking into whether spinning off Sikorsky "would allow United Technologies to better focus on providing high-technology systems and services to the aerospace and building industries," CEO Gregory Hayes said in a statement.
United Technologies said it will give further details on its plans for Sikorsky at its annual meeting with investors and analysts on Thursday.
Igor Sikorsky Jr. stands in front of a S-76 helicopter Thursday, Aug. 28, 2014 at the National Helicopter Museum in Stratford, Conn. His father, Igor Sikorsky Sr., built the world's first working helicopter. Photo: Autumn Driscoll
An S-92 flies out of the factory in Stratford on its way to the Gulf for oil rig duty.
http://www.ctpost.com/business/arti...s-weighing-possible-6128989.php#photo-4583539
UTC plans spin-off for Black Hawk unit
Robert Wright in New York
©Bloomberg
United Technologies plans to dispose of its business that builds the Black Hawk military helicopter, in a move that shows the determination of Greg Hayes, the new chief executive, to reshape the US aerospace and building systems conglomerate.
Mr Hayes will talk about his plans for Sikorsky Aircraft — which could be valued at about $7bn if it becomes an independent company — at an investor day on Thursday in New York.
©Bloomberg Gregory Hayes
However, Mr Hayes insisted that it made sense to keep the bulk of United Technologies — which makes Otis elevators, Pratt & Whitney aircraft engines and other building and aerospace components — intact.
The Sikorsky decision runs counter to the statements that Mr Hayes made at an investor day in December, when he insisted Sikorsky was not for sale but noted that anything was for sale for the right price. Mr Hayes took over on November 24 from Louis Chênevert following his abrupt and so far unexplained resignation.
“This is part of the ongoing portfolio review process that we began after I took over as CEO,” Mr Hayes said. “As we looked at the business around Sikorsky, we became convinced internally that, while Sikorsky is a great helicopter company, it probably didn’t fit into the UTC portfolio.”
Sikorsky — which builds the Marine One helicopters that US presidents use as well as the Black Hawk and some civilian helicopters — built entire aircraft while other parts of UTC provided only systems to other suppliers, Mr Hayes said.
“We’re primarily a systems provider, be that aircraft systems or systems in commercial buildings,” Mr Hayes said. “Those businesses have a decidedly different portfolio than the platform business that is Sikorsky.”
Sikorsky recorded operating profits of $219m on $7.45bn in sales for 2014. The profits were depressed by $466m of one-off charges.
The business was a “10 per cent margin” company, Mr Hayes said.
“It has the potential to grow but it has a big single customer in the US Department of Defense for two-thirds of its sales and the margin potential is just not what you would expect from a UTC-type business,” he said.
UTC has hired JPMorgan to advise it on the sale or spin-off of Sikorsky.
Part of the reason for keeping the rest of the business together was that it had far more financial capacity as a single group than if split up, said Mr Hayes, who was UTC’s chief financial officer before becoming CEO.
UTC would start work on a spin-off but would also consider a sale of Sikorsky, Mr Hayes said. A non-US buyer was a possibility, although such a transaction would need approval from the Pentagon.
The Pentagon seeks to preserve competition in key areas, meaning that it would be unlikely to approve the sale of Sikorsky to Boeing — which supplies Chinook helicopters — or another major manufacturer of military rotorcraft.
Mr Hayes said in December that UTC’s recent performance had “not been very good” and vowed to improve it. He said on Wednesday that there was no immediate sign of attractive acquisition targets and the best use of the cash raised from the Sikorsky disposal might be to repurchase UTC shares.
http://www.ft.com/intl/cms/s/0/871c3e0c-c83b-11e4-8fe2-00144feab7de.html#axzz3U8ahGFix
it will be a miracle if this new ceo finds a domestic buyer and gets approval to sell this division.
United Technologies says weighing possible Sikorsky spinoff
Updated 10:05 pm, Wednesday, March 11, 2015
Sikorsky Aircraft and the U.S. Navy celebrate the delivery of the 100th Sikorsky-built MH-60R Seahawk helicopter and the near completion of the 200th MH-60S Seahawk helicopter at their headquarters in Stratford, Conn.
HARTFORD, Conn. (AP) — United Technologies said Wednesday it is weighing options for its Sikorsky Aircraft division, including a possible spinoff of the maker of Black Hawk and other military and commercial helicopters.
The Hartford, Connecticut, company said it hasn't set a timetable for any action regarding Sikorsky and that there's no guarantee it will spin off the unit.
Sikorsky accounted for about $7.5 billion of United Technologies' total sales of $65 billion last year. The conglomerate's other divisions include jet engine manufacturer Pratt & Whitney and Otis elevator.
The company is looking into whether spinning off Sikorsky "would allow United Technologies to better focus on providing high-technology systems and services to the aerospace and building industries," CEO Gregory Hayes said in a statement.
United Technologies said it will give further details on its plans for Sikorsky at its annual meeting with investors and analysts on Thursday.
Igor Sikorsky Jr. stands in front of a S-76 helicopter Thursday, Aug. 28, 2014 at the National Helicopter Museum in Stratford, Conn. His father, Igor Sikorsky Sr., built the world's first working helicopter. Photo: Autumn Driscoll
An S-92 flies out of the factory in Stratford on its way to the Gulf for oil rig duty.
http://www.ctpost.com/business/arti...s-weighing-possible-6128989.php#photo-4583539
UTC plans spin-off for Black Hawk unit
Robert Wright in New York
United Technologies plans to dispose of its business that builds the Black Hawk military helicopter, in a move that shows the determination of Greg Hayes, the new chief executive, to reshape the US aerospace and building systems conglomerate.
Mr Hayes will talk about his plans for Sikorsky Aircraft — which could be valued at about $7bn if it becomes an independent company — at an investor day on Thursday in New York.
©Bloomberg Gregory Hayes
However, Mr Hayes insisted that it made sense to keep the bulk of United Technologies — which makes Otis elevators, Pratt & Whitney aircraft engines and other building and aerospace components — intact.
The Sikorsky decision runs counter to the statements that Mr Hayes made at an investor day in December, when he insisted Sikorsky was not for sale but noted that anything was for sale for the right price. Mr Hayes took over on November 24 from Louis Chênevert following his abrupt and so far unexplained resignation.
“This is part of the ongoing portfolio review process that we began after I took over as CEO,” Mr Hayes said. “As we looked at the business around Sikorsky, we became convinced internally that, while Sikorsky is a great helicopter company, it probably didn’t fit into the UTC portfolio.”
Sikorsky — which builds the Marine One helicopters that US presidents use as well as the Black Hawk and some civilian helicopters — built entire aircraft while other parts of UTC provided only systems to other suppliers, Mr Hayes said.
“We’re primarily a systems provider, be that aircraft systems or systems in commercial buildings,” Mr Hayes said. “Those businesses have a decidedly different portfolio than the platform business that is Sikorsky.”
Sikorsky recorded operating profits of $219m on $7.45bn in sales for 2014. The profits were depressed by $466m of one-off charges.
The business was a “10 per cent margin” company, Mr Hayes said.
“It has the potential to grow but it has a big single customer in the US Department of Defense for two-thirds of its sales and the margin potential is just not what you would expect from a UTC-type business,” he said.
UTC has hired JPMorgan to advise it on the sale or spin-off of Sikorsky.
Part of the reason for keeping the rest of the business together was that it had far more financial capacity as a single group than if split up, said Mr Hayes, who was UTC’s chief financial officer before becoming CEO.
UTC would start work on a spin-off but would also consider a sale of Sikorsky, Mr Hayes said. A non-US buyer was a possibility, although such a transaction would need approval from the Pentagon.
The Pentagon seeks to preserve competition in key areas, meaning that it would be unlikely to approve the sale of Sikorsky to Boeing — which supplies Chinook helicopters — or another major manufacturer of military rotorcraft.
Mr Hayes said in December that UTC’s recent performance had “not been very good” and vowed to improve it. He said on Wednesday that there was no immediate sign of attractive acquisition targets and the best use of the cash raised from the Sikorsky disposal might be to repurchase UTC shares.
http://www.ft.com/intl/cms/s/0/871c3e0c-c83b-11e4-8fe2-00144feab7de.html#axzz3U8ahGFix