The Canadian Ministry of Public Works and Government Services
recently announced that it has given a green signal to the $4.7
billion (C$5 million) deal to buy 28 helicopters from Sikorsky
Aircraft Corp., a subsidiary of diversified business conglomerate
United Technologies Corp.
). The deal, which was almost shelved due to long delays, got a
fresh lease of life when the Canadian government entered into new
Principles of Agreement with principal contractor Sikorsky.
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Under the terms of the new agreement, Sikorsky will deliver a
fleet of CH-148 Cyclone Maritime helicopters to help Canada
replace its aging CH-124 Sea King copters by 2015. The
twin-engine multi-role maritime helicopter will be operated by
the Canadian Forces Air Command for anti-submarine warfare (ASW),
anti-surface warfare, surveillance and control, and search and
rescue (SAR) missions. It will also provide tactical transport
facility for national and international security missions.
In addition, the new contract also states that Sikorsky will be
required to upgrade the helicopters' capability to suit Canada
without any extra charge. The copters, developed under the
Canadian Forces' Maritime Helicopter Project (MHP), will be
jointly built by Sikorsky and
General Dynamics Corp.
Sikorsky is one of the world's largest manufacturers of military
and commercial helicopters, and also provides aftermarket
helicopter and aircraft parts and services for its parent company
United Technologies. At present, major production programs at
Sikorsky include the UH-60M Black Hawk medium-transport
helicopters and HH-60M Medevac helicopters for the U.S. and
foreign governments, the S-70 Black Hawk for foreign governments,
the MH-60S and MH-60R helicopters for the U.S. Navy, the
International Naval Hawk for multiple naval missions, and the
S-76 and S-92 helicopters for commercial operations.
Based in Hartford, Conn., United Technologies provides high-end
technology products and services to the building systems and
aerospace industries worldwide. The company is a diversified
business conglomerate serving various end markets such as
aerospace, defense and commercial construction. The business
diversification allows the company to remain profitable amid
tough economic times.
The operations of the company are primarily classified into two
principal businesses: commercial and aerospace. Under its
commercial business, the company has Otis and the UTC Climate,
Controls & Security division, which combined the former
Carrier and UTC Fire & Security divisions. The aerospace
business of the company consists of Sikorsky aircraft and the UTC
Propulsion & Aerospace Systems, which includes UTC Aerospace
Systems and Pratt & Whitney divisions.
United Technologies presently has a Zacks Rank #3 (Hold). Other
notable companies in the industry include
), both carrying a Zacks Rank #2 (Buy).