Fri, Mar. 13, 3:52 AM
- Since the beginning of the year, United Technologies (NYSE:UTX) approached several companies about acquiring Sikorsky, CEO Greg Hayes said at the company's investor meeting yesterday, although it quickly became clear that a sale would be "very hard" due to the unit's heavy tax liability.
- "The business is growing too slowly and is overly dependent on Defense Department contracts," he added.
- United Tech said on Wednesday it was exploring alternatives for Sikorsky, including a potential spinoff.
- Previously: United Tech's Sikorsky asset could be worth $7B-$8.5B, analyst says (Mar. 12 2015)
- Previously: United Tech CEO sheds light on possible Sikorsky spinoff (Mar. 12 2015)
- UTX +0.2% AH
Thu, Mar. 12, 11:33 AM
- Sikorsky Aircraft would be a sought-after property if United Technologies (UTX +2%) follows through with a sale, probably as a tax-free spinoff that could be valued on a stand-alone basis of $7B-$8.5B, or $8-$10/share, Sterne Agee's Peter Arment calculates.
- Citi's Jason Gursky says a deal should be met favorably, Sikorsky is not well aligned with UTX’s vision of being exposed to end markets that will likely benefit from the world’s growing middle class.
- Gursky is looking to Northrop Grumman's (NYSE:NOC) 2011 spinoff of Huntington Ingalls as an example, which led to the levering up of the spinco and the repurchase of the parent company stock.
- Management has put no timeline on the potential alternative outcomes, but Arment expects a conclusion by mid-summer 2015.
Thu, Mar. 12, 8:10 AM
- United Technologies' (NYSE:UTX) chief executive acknowledged that the decision to possibly spin off its Sikorsky Aircraft unit was difficult, but said it would ultimately create value by giving shareholders the choice of owning a helicopter business or owning an aerospace and commercial buildings firm.
- "The issue with Sikorsky here is not that Sikorsky is a bad business. Sikorsky is a great helicopter business," CEO Gregory Hayes told CNBC in a "Squawk Box" interview. "As we think about the portfolio, though, it's really a question of, 'How do you position yourself for above GDP growth, for higher margin into the future?"
- Hayes also noted that Sikorsky's growth will be governed by defense spending and areas of "huge uncertainty."
- Previously: WSJ: United Technologies may spin off Sikorsky Aircraft (Mar. 11 2015)
- UTX +2% premarket
Wed, Mar. 11, 7:16 PM
- The WSJ reports United Technologies (NYSE:UTX) may spin off its Sikorsky Aircraft helicopter unit, and that it might "discuss steps toward a possible spinoff" at tomorrow's investor/analyst meeting.
- Excluding restructuring costs and non-recurring items, Sikorsky had 2014 revenue of $6.62B (+6% Y/Y), and an op. profit of $699M. The business is best known for its Black Hawk helicopters.
- The meeting starts at 1PM ET tomorrow (webcast)
Wed, Mar. 11, 8:26 AM
- United Technologies (NYSE:UTX) is getting it together, writes Peter Arment, Josh Sullivan and Asher Carey in Barron's, saying new CEO Greg Hayes will set a new path that involves portfolio shaping, M&A and more buybacks.
- Sterne Agee rates the stock at Buy with a $140 price target, ahead of its 2015 investor meeting tomorrow.
- UTX +0.2% premarket
Wed, Feb. 25, 7:30 AM
- Sikorsky Aircraft (NYSE:UTX) expects to sell around 400 helicopters in the Middle East over the next five to ten years, roughly as many as it has delivered to the region to date.
- "Expansion of the existing fleet of 400 will be in a proportional manner, and modernization is going to drive that number in the region," said Anand Stanley, vice president and general manager for the Middle East, Turkey and Africa.
- Sikorsky plans to open a regional office in Abu Dhabi, and is opening a new business unit in Saudi Arabia to support military and commercial aircraft.
Fri, Feb. 20, 8:14 AM
- Sikorsky Aircraft (NYSE:UTX) will make India its only assembly location outside of the U.S. for its S-70B Seahawk helicopters if it wins contracts to build more than 120 helicopters from the country, said Samir Mehta, president of Sikorsky’s defense systems department.
- The helicopters may be built either with the Tata Group with whom Sikorsky already has an alliance, or through a new partnership with another Indian company.
Wed, Feb. 18, 2:38 PM
- United Technologies (UTX +0.6%) is exploring international acquisition opportunities of at least $5B that would use the company's "trapped cash" overseas, CEO Greg Hayes says.
- But until deal opportunities arise, UTX will buy back its stock, Hayes says after the company announced last month that it expects to repurchase $3B of its shares this year, although he does not see doing a buyback at $10B or more.
- Hayes sees UTX's portfolio to be split 60-40 between commercial and aero, or vice versa, and that the portfolio should support long-term, double-digit earnings growth.
Wed, Feb. 18, 8:58 AM
- As a step toward providing allied nations with weapons, the U.S. government has established a policy that will permit the widespread export of armed drones for the first time.
- Under the new rules, foreign governments' requests for drones will be examined on a case-by-case basis, while recipient nations must agree to certain "end-use assurances."
- To date, the U.S. has sold its armed drones only to Britain. Unarmed military drones, used primarily for intelligence, have been sold to several countries, including France and Italy.
- The shift in policy comes just days after the FAA proposed rules that would lift some restrictions on drones for commercial use.
- Related stocks: AVAV, NOC, TXT, LMT, LLL, RTN, BA, SAIC, GD, OA, COL, UTX
Fri, Feb. 6, 6:57 PM
- Former United Technologies (NYSE:UTX) CEO Louis Chenevert will leave the company with a package of stock options and deferred compensation that could be valued at ~$195M, WSJ reports.
- UTX shares rose more than 50% during Chenevert’s six years as CEO, which was marked by the 2012 acquisition of Goodrich Corp. and a multiyear investment of billions of dollars to develop a new line of efficient, quieter geared turbofan engines for medium-size commercial airliners.
- But Chenevert reportedly was challenged by UTX's lead director over the CEO's work commitment after he visited a factory in Taiwan where his new yacht was under construction; Chenevert tendered his retirement last November after the discussion.
Fri, Feb. 6, 7:46 AM
- Sikorsky Aircraft (NYSE:UTX) said it is seeing a big spike in demand for its UH-60 Black Hawk helicopters from Eastern Europe, driven by growing concerns in countries in the region about suppliers for their existing Russian-built helicopters.
- Several Eastern European countries have already submitted a formal request for the aircraft to the U.S. government, announced Samir Mehta, president of Sikorsky Defense Systems & Services.
- Meanwhile, the U.S. Navy said it was launching a more intensive effort to ensure that any wiring or fuel line problems with its CH-53E and MH-53E heavy-lift helicopters are corrected, following the January 2014 crash of an MH-53E Sea Dragon that killed three crew members.
Wed, Jan. 28, 3:49 PM
- The U.S. Air Force says it has selected Boeing's (BA +5.7%) commercial 747-8 airliner to replace its current fleet of Air Force One presidential aircraft.
- Boeing has not secured a contract, but the Pentagon says it likely would win deals for the aircraft and modifications that include sophisticated communications equipment and antimissile devices.
- The Sikorsky unit of United Technologies (UTX -1.7%) and Lockheed Martin (LMT -0.5%) win a $1.24B contract to build the first six of a planned fleet of 23 helicopters for the Marine Corps to transport the president, vice president, cabinet members and other dignitaries.
Mon, Jan. 26, 6:38 PM
- The story of Q4 at United Technologies (NYSE:UTX) "really is one word, and that’s ‘currency,’” CEO Greg Hayes says in the earnings conference call, as the company - which derives 62% of sales from outside the U.S. - is hurt by the strengthening dollar once those sales are translated back into the U.S. currency.
- UTX had projected a 6% decline in the value of the euro vs. the dollar when it briefed investors Dec. 10, but the euro has fallen another 12% since then, Hayes said, whacking $0.24 off anticipated FY 2015 EPS.
- To offset some of the currency impact, Hayes says UTX will costs and raise its planned share buyback for the year from $2B to $3B.
- UTX executives said nothing had changed in the company's fundamental outlook, backing its forecast for 3%-5% in organic sales growth for the year.
- UTX -2.1% AH.
Mon, Jan. 26, 4:51 PM
- United Technologies (NYSE:UTX) -2.3% AH after Q4 earnings met expectations but it cut its FY 2015 outlook due to negative impacts from the stronger dollar.
- UTX says it sees 2015 EPS of $6.85-$7.05 per share, down from its prior range of $7.00-$7.20 and below analyst consensus of $7.19, and FY 2015 revenues of $65B-$66B vs. $66.9B consensus.
- In Q4, UTX says new equipment orders at its Otis elevator business rose 12% Y/Y, excluding foreign exchange fluctuations, but sales at aerospace subsidiary Pratt & Whitney fell 6%.
- Equipment orders at UTC Climate, Controls & Security gained 11%; commercial aftermarket sales rose 5% for UTC Aerospace Systems.
Mon, Jan. 26, 4:11 PM
Mon, Jan. 26, 10:21 AM
UTX vs. ETF Alternatives
United Technologies Corporation provides high technology products and services to the building systems and aerospace industries. Its business segments are Otis, UTC Climate, Controls & Security, Pratt & Whitney, UTC Aerospace Systems and Sikorsky.
Other News & PR