United Technologies Corp. has announced it will separate its Connecticut-based Sikorsky Aircraft business as it exits the helicopter business.
The Hartford conglomerate said it will focus on high-technology systems and services to the aerospace and building industries. It said a decision on selling or spinning off Sikorsky will be made by the end of the third quarter.
United Technologies has previously said Sikorsky didn't fit with plans for long-term growth.
“Regardless of corporate structure, Sikorsky's skilled and dedicated workforce will continue to produce the world's best helicopters-- a critical national security asset. I will continue to strongly support military budgets that recognize the vital value of Sikorsky helicopters to our national defense, including robust funding in the authorization bill now before the Senate," U.S. Sen. Richard Blumenthal said in a statement. "For both military and civilian uses, Sikorsky's products are the gold standard-- a fact unchanged by this planned shift in ownership.”
Excluding Sikorsky, United Technologies expects 2015 earnings per share of $6.35 to $6.55 on sales of $58 billion to $59 billion. With Sikorsky, earnings per share are expected at $6.55 to $6.85, from $6.85 to $7.05.
United Technologies expects 10 cents to 20 cents per share of separation costs and a 10-cent per share decline in Sikorsky operations due to oil and gas market weakness.