Erickson-Air Crane Inc.
) received a modification contract from the Helicopter Transport
Services for adjustments and modernization of seven CH54B tail
boom and pylon assemblies. The contract is valued at $1.5
With advanced engineering and technical work currently
underway, Erickson Air's upgrade task will help increase the
lifespan of the helicopter components. The latest contract bears
evidence of the company's technological expertise in the fields
of maintenance, repair and overhaul (MRO).
Erickson Air's efforts to upgrade its technological skills
have fetched sizeable contract renewal wins. In the last three
months, the company secured a total of four renewal contracts
including the current one.
Erickson-Air's diversified nature of operations has also
proved to be a key catalyst. From transport to the energy sector,
the company has successfully expanded its operations in the U.S.
as well as in the international market. The recent purchase of
HRT Participações em Petróleo S.A.'s Air Amazonia will unlock
significant growth prospects for Erickson-Air in the emerging
South American markets.
Furthermore, the buyout of Evergreen Helicopters from
Evergreen International Aviation, Inc. also helped in bringing
contracts for the company - the most lofty being the $100 million
contract extension with Fluor Corp. for offering multiple rotary
wing aircraft for cargo as well as transport mission requirements
for aiding forces in Afghanistan.
The back-to-back acquisitions will somewhat counter the
company's low-priced intermittent defense contract flows.
Nevertheless, the budget sequestration will continue to remain an
overhang on major defense players.
At the moment Erickson Air carries a Zacks Rank #3 (Hold).
Other defense industry operators worth considering are Zacks
Ranked #2 (Buy)
The Boeing Company
General Dynamics Corp.
Northrop Grumman Corp.
Based in Portland, OR, Erickson Air Crane manufactures and
operates Erickson S-64 Air crane (S-64) heavy-lift helicopters
and has a market capitalization of $146.48 million.
BOEING CO (BA): Free Stock Analysis Report
ERICKSON AIR-CR (EAC): Free Stock Analysis
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