Erickson Air-Crane Inc.
) has received two contracts, one each from Helifor Canada and
Western Forest Products Inc. The values of these contracts are in
the range of $18-$23 million. Besides providing the S-64E model
helicopter, the company will offer pilots, full-field maintenance
support crew, parts and components to both the parties under the
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The Erickson S-64E Aircrane is a flexible and a powerful,
commercial heavy-lift helicopter. It has the capacity to lift up
to 20,000 pounds of weight at a time along with pilots, the
entire field maintenance support crew and parts. The S-64E
Aircrane also has a rear load-facing cockpit with complete
aircraft control for precision lift and load placement
Per the agreement with Helifor Canada, Erickson Air-Crane will
offer logging services and build a transmission tower in British
Columbia, Western Canada. The company will provide all the
support through its unit Canadian Air-Crane. The transaction is
valued at $8-$10 million and will continue till Dec 31, 2013. In
addition, the company will provide specialized lift services for
the precision placement of transmission towers in the power-line
As per the renewal contract with Western Forest Products Inc.,
Erickson Air-Crane will offer aerial support for the year-round
selective logging attempts in Alberta and British Columbia. The
transaction is valued at $10-$13 million. Moreover, the S-64E
will be utilized to remove fir and red cedar trees in the
difficult territories on isolated timberlands.
Over the last 40 years, Erickson has enjoyed a long-standing
business association with the Canadian companies and tries to
meet its commitments in terms of maintaining product and service
standards along with delivery timing. This is the third
consecutive year that Helifor signed deal with Erickson for
heavy-lift aerial services.
Portland, OR.-based Erickson Air-Crane Inc. manufactures and
operates Erickson S-64 Aircrane heavy-lift helicopters. The
company operates through two segments: Aerial Services as well as
Aircraft Manufacturing and Maintenance, Repair, and Overhaul.
In 2012, Erickson Air-Crane completed the purchase of the Sun
Bird Aircraft and associated spare parts inventory and
accessories from SDG&E, a subsidiary of
). The company is also expected to complete the acquisition of
Air Amazonia's aerial services business from HRT Participacoes em
Petroleo, S.A. in the near term. These acquisitions, going
forward, will continue to strengthen Erickson's leading position
in the heavy-lift market.
However, apprehensions over the future growth of the U.S. defense
budgets remain concerns for Erickson Air-Crane.
Erickson Air-Crane Inc. currently has a Zacks Rank #3 (Hold).
Other stocks from the sector that are presently performing better
include Zacks Ranked #2
The Boeing Company
Lockheed Martin Corporation
), with a Buy rating.