Erickson Air Crane Inc.
) newly acquired subsidiary, Evergreen Helicopters Inc., received
a contract extension from the U.S. Army's Garrison in Hawaii for
the supply of rotary wing aerial services to support air medical
evacuation and training activities.
The Army Contracting Command in Fort Shafter, Hawaii is the
contracting authority. With this order the total value of the
contract will reach over $10.0 million. The federal contract was
previously awarded in Jun 2013.
Erickson-Air Crane has been known to offer aircraft services
to the U.S. military over the past four decades. The key factor
that drives Erickson-Air Crane's business is its diversified
nature of operations. From transport to the energy sector, the
company has been successful in spreading its business
capabilities in the U.S. as well as in the international
Recently, Erickson-Air Crane cemented relations with Flour
Corporation by clinching an annual contract extension for sharing
project management capabilities and delivery of multiple
aircraft, pilots and ground crew for both passenger and cargo
transport to support ongoing military operations in
This was topped by two back-to-back contract renewals with
Special Operations Command Africa/SOCAFRICA for the delivery of
fixed and rotary wing aircraft for personnel and cargo transport
for the Department of Defense in Central Africa.
The buyout of Evergreen Helicopters from Evergreen
International Aviation, Inc. proved to be an important catalyst
for Erickson-Air Crane's growth prospects. This high-quality
acquisition boosted the company's industry position and allowed
it to secure a slew of domestic and overseas contract extensions
in the first half of 2013.
However, the threat of budget austerity in the U.S. has
reduced the total value of such contracts. Moreover,
International Monetary Fund's lower economic growth forecast of
1.9% in 2013 owing to the impact of sequestration. This will
further put pressure on the defense sector spending thereby
affecting Erickson-Air Crane's future opportunities.
At the moment, the company carries a Zacks Rank #3 (Hold).
Other defense industry counterparts worth considering are Zacks
Ranked #2 (Buy)
Northrop Grumman Corp.
Based in Portland, Ore., Erickson Air Crane manufactures and
operates Erickson S-64 Air crane (S-64) heavy-lift helicopters
and has a market capitalization of $202.6 million.
BOEING CO (BA): Free Stock Analysis Report
ERICKSON AIR-CR (EAC): Free Stock Analysis
EMBRAER AIR-ADR (ERJ): Free Stock Analysis
NORTHROP GRUMMN (NOC): Free Stock Analysis
To read this article on Zacks.com click here.