Hartford aerospace manufacturer United Technologies Corp. said Monday that its management intends to spin off or sell its Stratford helicopter unit, Sikorsky Aircraft.
UTC announced in March that it would consider a sale or spinoff of Sikorsky, which has slimmer profit margins than the company’s other subsidiaries.
“Our strategic review has confirmed that exiting the helicopter business is the best path forward for United Technologies,” UTC President and CEO Gregory Hayes said in a statement Monday. “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.”
UTC also lowered its 2015 earnings guidance on Monday, to a range of $6.55 to $6.85, down from a previous range of $6.85 to $7.05, partly due to reduced Sikorsky expectations because of weakness in the oil and gas markets.
UTC announced earlier this month that it would lay of 1,400 Sikorsky workers, including 180 in Connecticut, and close the subsidiary’s Bridgeport facility.
UTC’s board of directors must still approve the separation, the company said.
The Sikorsky announcement came on the opening day of the International Paris Air Show, where UTC Aerospace has already made a handful product and customer announcements.
