United Technologies Reaffirms 2014 EPS View as Sikorsky Signs Contract Amendment

By Dow Jones Business News, 
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By Josh Beckerman

United Technologies Corp.'s ( UTX ) Sikorsky Aircraft Corp. unit signed a contract amendment Wednesday with the Canadian government that clears the way for delivery of CH148 Cyclone helicopters.

In April, UTC said Sikorsky and the government reached an agreement over a troubled and long-delayed maritime helicopter contract, and said final terms were still being negotiated.

The amendment will bring the Canadian Maritime Helicopter Program to completion and enable Canada'sDepartment of National Defense to begin retiring the Sea King helicopter fleet in 2015.

UTC reaffirmed its 2014 earnings guidance, as an expected second-quarter charge will be offset by one-time gains during the year.

Due to the amended agreement, Sikorsky will record sales of about $850 million and a charge of $440 million in the second quarter, "reflecting the cumulative effect of progress to date toward completion of the program, as modified."

UTC continues to expect 2014 earnings per share of $6.65 to $6.85.

In April, the company increased the lower end of its earnings-per-share guidance from $6.55, and affirmed its sales projection of $64 billion.

Write to Josh Beckerman at josh.beckerman@wsj.com

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