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AEROSPACE
Airbus hopes to land new A400M orders soon
by Staff Writers
Le Bourget, France (AFP) June 17, 2015


UTC to rid itself of Sikorsky Aircraft
Hartford, Conn. (UPI) Jun 16, 2015 - Sikorsky Aircraft is to be spun off or sold by parent company United Technologies Corp., subject to approval by UTC's board of directors.

The decision follows a strategic company review by UTC which was announced earlier this year.

Sikorsky Aircraft is a premier manufacturer of helicopters, including the UH-60 family of Blackhawks.

"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. "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 said that UTC expects 2015 earnings per share of $6.35 to $6.55 on sales of approximately $58 to $59 billion, excluding Sikorsky. It expects 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.

"Including Sikorsky, the company now anticipates earnings per share of $6.55 to $6.85, down from the previous expectation of $6.85 to $7.05." it said. "This reduction in the earnings expectation range reflects approximately $0.10 to $0.20 of one-time separation costs along with a $0.10 decline in Sikorsky's operational expectations for the year due to weakness in the oil and gas markets," a customer source for Sikorsky helicopters.

The crash of an Airbus A400M military transport plane last month hasn't affected export orders, the firm's chief executive said Wednesday, adding Airbus hoped to land new customers soon.

An A400M plane crashed during a test flight on May 9 near Seville in Spain, killing four of the six people on board and seriously injuring the two others.

Initial analysis of the black boxes showed that three of the four engines had failed.

Airbus's chief executive Tom Enders told France's Europe 1 radio that the crash was a tragic event but that so far it had not had an impact on orders as countries that use the plane were convinced of its merits.

One of the advantages that the new turboprop offers is that it can take off on shorter runways and rough terrain with up to 37 tonnes of cargo and troops.

Enders said there was lots of interest in the aircraft, including in several countries in the Middle East and Asia, and that he hoped to sign more contracts in the near future.

The A400M has been flying throughout the week at the Paris Air Show, which runs until Sunday.

Even before the crash last month, the plane has been plagued by years of production delays and costly overruns.

European nations who pushed for the development of the aircraft had even considered cancelling the programme at one point.

The first A400M was delivered in 2013, four years late and 6.2 billion euros ($7.0 billion) over budget.

A total of 174 have been ordered since, but the company has been having difficulty meeting its delivery schedule, prompting Airbus to shake up its management of the programme in January.

It acknowledged at the time that with respect to "the integration of military capabilities and the industrial ramp-up in particular, we have not been performing at the level which had been expected of us."

dlm-rl/er/cb

Airbus


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