Evergreen Helicopters, a wholly owned subsidiary of
Erickson Air-Crane Inc.
), has extended its contract with Fluor Corp. The value of the
contract is more than $100 million. Fluor Corporation is engaged
in engineering, procuring, constructing, maintaining and is
involved in project management services.
ALLIANT TECHSYS (ATK): Free Stock Analysis
ERICKSON AIR-CR (EAC): Free Stock Analysis
RAYTHEON CO (RTN): Free Stock Analysis Report
WESCO AIRCRAFT (WAIR): Free Stock Analysis
To read this article on Zacks.com click here.
Per the contract, the company will provide multiple rotary wing
aircraft for cargo as well as transport mission requirements.
These aircrafts will be used by Afghanistan forces. This contract
extension would continue to meet significant, urgent and ongoing
needs of various aviation services work in Afghanistan.
We note that the company had acquired Evergreen Helicopters in
May this year.
Recently, the company also extended its contract with U.S.
Transportation Command to provide essential services to support
overseas operations in Afghanistan. Taken together, both these
contract extensions would bring in $125 million.
In Mar 2013, the company renewed its contracts with Helifor
Canada ("Helifor"), an affiliate of Columbia Helicopters, and
Western Forest Products Inc. ("Western"). Per this renewal,
Erickson will continue to provide Helifor with logging services
and transmission tower construction in western Canada for $8
million to $10 million. Erickson will continue to provide aerial
support for year-round selective logging efforts to Western for
$10 million to $13 million.
Erickson Air-Crane manufactures and operates Erickson S-64
Aircrane (S-64) heavy-lift helicopters. The series of contract
renewals at Erickson Air-Crane speaks for the confidence of its
customers in its services.
Currently, the company is progressing well with ways that are
generating revenues. Contract renewals and acquisitions are
driving this growth. Strategic acquisitions, going forward, would
continue to strengthen Erickson's leading position in the
The company has built a good position in the market by the dint
of its efforts. Recently, after a successful negotiation with
financial institutions Erickson Air-Crane enhanced its five-year
revolving credit facility to $125 million. On May 2, the company
entered into a $100 million, five-year revolving credit facility
with a group of financial institutions. This credit facility will
carry an interest rate of 325-450 basis points over the London
Interbank Offered Rate. Erickson Air-Crane intends to use this
credit facility for general corporate purposes.
The company presently retains a short-term Zacks Rank #1 (Strong
Buy). Other stocks to consider are
Wesco Aircraft Holdings, Inc.
Alliant Techsystems Inc.
), all with a Zacks Rank #2 (Buy).