Tuesday, June 16, 2015

UTC Announces Intention To Exit Helicopter Business

Hartford June 15, 2015 - United Technologies Corp. today announced that it will pursue the separation of the Sikorsky Aircraft business from United Technologies, subject to final Board approval.  This announcement follows a review of strategic alternatives for Sikorsky announced earlier this year.  A decision on whether Sikorsky will be spun off or sold is expected by the end of the third quarter.
"Our strategic review has confirmed that exiting the helicopter business is the best path forward for United Technologies," said Gregory Hayes, UTC President and Chief Executive Officer.  "Sikorsky is the world's premier helicopter company and through a series of strategic wins is well positioned for long-term growth.  However, separation of Sikorsky from the portfolio will allow both United Technologies and Sikorsky to better focus on their core businesses.  Over the coming weeks, we'll determine whether a spinoff or direct sale is the best way to enhance Sikorsky's long-term success and create the most value for customers and shareholders."
Excluding Sikorsky, UTC now expects 2015 earnings per share of $6.35 to $6.55 on sales of approximately $58 to $59 billion.  The company continues to expect organic sales growth of 3 to 5 percent and cash flow from operations less capital expenditures in the range of 90 to 100 percent of net income attributable to common shareowners.
Including Sikorsky, the company now anticipates earnings per share of $6.55 to $6.85, down from the previous expectation of $6.85 to $7.05.  This reduction in the earnings expectation range reflects approximately $0.10 to $0.20 of one-time separation costs along with a $0.10 decline in Sikorsky's operational expectations for the year due to weakness in the oil and gas markets.

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