Sikorsky Aircraft Corp., a subsidiary of diversified business
United Technologies Corp.
), is likely to receive a $6.8 billion order from the U.S. Air
Force under its combat rescue helicopter (CRH) program. However,
the contract is contingent to the outcome of the budgetary review
process of the President, wherein huge budget cuts are expected
to take place in the defense program.
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A Reuters report has claimed that top officials from the US Air
Force have revealed that the CRH program is likely to have the
least priority and faces the risks of budget cuts with a
challenging macroeconomic environment. However, the US Air Force
had been desperately trying to replace its Sikorsky HH-60 Pave
Hawk helicopters for a long time and this could have been an
opportune time to substitute an aging fleet with a newer one to
hone its combat forces.
Sikorsky is one of the world's largest manufacturers of military
and commercial helicopters. It 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, CT, 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 United Technologies 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.
Tyco International Ltd.
), each carrying a Zacks Rank #2 (Buy).