Sikorsky Wins $1.28 Billion US Air Force Contract - Analyst Blog

Sikorsky Aircraft Corp, a subsidiary of diversified business conglomerate United Technologies Corp. UTX, recently secured a contract to develop new combat search and rescue helicopters for the U.S. Air Force. The initial Engineering & Manufacturing Development EMD contract is valued at $1.28 billion and could eventually be worth approximately $7.9 billion if all options are exercised.

The contract includes development and delivery of four new Combat Rescue Helicopters CRH coupled with seven aircrew and maintainer training systems. The U.S. Air Force is expected to acquire a total of 112 aircraft to replace its current fleet of HH-60G Pave Hawk helicopters. Along with its project partner Lockheed Martin Corp. LMT, Sikorsky will develop a variant of its UH -60M Black Hawk and deliver the initial training of aircrew and maintainers and five Combat Rescue Helicopters by 2020.

Despite a challenging macroeconomic environment that has curtailed military spending, this new contract speaks volume of the high quality standards of Sikorsky and is likely to yield in similar such contracts in the near future.

Sikorsky is one of the world's largest manufacturers of military and commercial helicopters, and also provides aftermarket helicopter and aircraft parts and services for its parent company United Technologies.

Based in Hartford, CT, its parent company United Technologies provides high-end technology products and services to the building systems and aerospace industries worldwide. This diversified business conglomerate serves various end markets such as aerospace, defense and commercial construction. The business diversification allows the company to remain profitable during tough economic times.

United Technologies currently has a Zacks Rank #2 (Buy). Other stocks that look promising and are worth a look now include Hutchison Whampoa Limited (HUWHY) and ITT Corporation ITT, both carrying a Zacks Rank #2 (Buy).

 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
ITT CORP ITT: Free Stock Analysis Report
 
UTD TECHS CORP UTX: Free Stock Analysis Report
 
LOCKHEED MARTIN LMT: Free Stock Analysis Report
 
HUTCHINSON WHAM (HUWHY): Get Free Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research