United Technologies announced that it plans to sell or spin off its the Sikorsky Aircraft business, subject to final board approval, company officials announced June 15.
The announcement follows a review of strategic alternatives for Sikorsky announced earlier this year and a decision on whether Sikorsky will be spun off or sold is expected by the end of the third quarter, a UTC statement said.
"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 said in a written statement. "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, firm officials explained in a statement.
Sikorsky is known for it production an manufacture of a wide range of helicopters, including the UH-60 series of aircraft such as the Army Black Hawk, Navy Sea Hawk and Air Force Pave Hawk.