Heavy-lift helicopter manufacturer
Erickson Air-Crane Inc.
) received an exclusive firefighting services contract from the US
Forest Service ("USFS"). Per the contract, the company will provide
aerial firefighting services using one of its heavy-lift Aircrane
helicopters. This is a precautionary measure taken by the federal
authority ahead of the upcoming forest fire season.
Erickson Air-Crane will have one of its heavy duty helicopters
stationed in Boise, Idaho, which will be pressed into action
whenever there is a distress call. Erickson Air-Crane's expertise
in handling such extreme situations helped it to get this new
The company has a long working relationship with USFS. This new
contract increases the total exclusive contract count between the
two parties to eight. Like the other contracts USFS might extend
this contract for another three years.
The company's able firefighting crew with proven expertise makes
it a preferred choice over its peers. In May 2012, the company was
awarded a $44 million, three-year contract by the NATO Maintenance
and Supply Agency ("NAMSA") to provide aerial firefighting services
Erickson Air-Crane generates the majority of its revenue from
. In the first quarter 2012, revenue generated from this segment
was $25.1 million (91% of revenue) while the Manufacturing division
contributed the rest. The success of Aerial Services is guaranteed
given its run of recent contract wins.
The company reiterated its earnings per share expectation for
2012 in the range of 72 cents to 82 cents. The Zacks Consensus
Estimate for 2012 is 69 cents.
Erickson Air-Crane currently retains a Zacks #3 Rank (short-term
Hold rating). The company competes with the likes of
Northrop Grumman Corporation
) in the defense niche.
Based in Portland, Oregon, Erickson Air-Crane is the
manufacturer of a powerful heavy-lift helicopter, Erickson S-64
Aircrane. The company also operates a fleet of heavy helicopters
and provides a variety of services to the US government and its
worldwide customers. Its service offerings include firefighting,
timber harvesting, infrastructure construction, and crewing.
(EAC): ETF Research Reports
EMBRAER AIR-ADR (ERJ): Free Stock Analysis
NORTHROP GRUMMN (NOC): Free Stock Analysis
To read this article on Zacks.com click here.