Sikorsky Aircraft Corp., a subsidiary of diversified business
United Technologies Corp.
), recently procured a contract from the U.S. Navy to develop
four production-representative CH-53K heavy-lift helicopters for
the U.S. Marine Corps. The $435-million contract for the
helicopters, which are designated as System Demonstration Test
Articles (SDTA), will facilitate the Marines to conduct
operational evaluation of the new helicopter system in support of
Initial Operational Capability in 2019.
The SDTA helicopters form an integral part of the $3.5 billion
System Development and Demonstration (SDD) contract of the Navy
that was awarded to Sikorsky in Apr 2006. Till date, Sikorsky has
delivered two of the seven SDD CH-53K aircraft to the Navy.
Moving forward, the Navy intends to order an additional 196
CH-53K helicopters to set up eight operational squadrons and one
training squadron to support the Marine Corps' operational
requirements. These augur well for the long-term prospects of
Sikorsky and pledge a steady revenue stream.
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
Hutchison Whampoa Ltd.
Compass Diversified Holdings
), each carrying a Zacks Rank #2 (Buy).
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UTD TECHS CORP (UTX): Free Stock Analysis
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