The Middletown Press (Middletown, CT)
Sikorsky sees decline in Q2
Helicopter programs at Sikorsky declined by roughly $115 million in the second quarter, according to Tuesday reports by parent company Lockheed Martin.
But overall, the Marylandbased defense conglomerate had a strong showing, according to company executives.
"Our team remains focused on driving growth, investing in innovative solutions and creating longterm value for shareholders,” said Marillyn Hewson, Lockheed Martin chairman, president and CEO, in a news release.
The conglomerate reported $14.4 billion in net sales for the quarter, up from $13.4 billion from the same period last year. Earnings also increased from $1.2 billion in the second quarter 2018 to $1.4 million this year.
In the rotary and mission systems segment that includes Sikorsky, Lockheed Martin reported a 6 percent, or $202 million, increase in sales due largely to the company’s integrated warfare systems and sensors programs and various training and logistics solutions programs. The dip in Sikorsky’s helicopter programs offset increases.
The lull came primarily from the Stratford company’s Black Hawk production, combat rescue helicopter program and commercial aircraft services.
Lockheed Martin does not break out Sikorsky sales from other business units in the division.
On the upside, the Stratford company has added several bigticket orders to its list of todos last quarter.
The largest is a $1.1 billion contract to continue building Ch53K King Stallion helicopters for the U.S. Marine Corps. Sikorsky snagged an order for a dozen of the heavy lift helicopters expected to replace the Marine’s outdated fleet. The contract is part of a larger order of 200 King Stallions.
The Pentagon will award the money in stages to Sikorsky and Lockheed Martin, including $509 million for the current fiscal year and $617 million in the following year.
Sikorsky also won a $542 million contract from the United States Navy to build six VH92A Presidential Helicopters as part of the 23aircraft program.
The Stratford company is expecting to begin delivering the first of the presidential helicopters in 2021 while the first of the King Stallions is slated for a 2022 delivery.
The U.S. House of Representatives recently approved more than $700 billion in funding for defense programs last month as part of almost $1 trillion in spending for the next fiscal year. That includes several Sikorsky contracts that total roughly $3.5 billion, which should ramp up production and hiring for the company in coming years.
Legislation that would authorize the spending is awaiting a final vote by the Senate. If approved, it could mean a surge of production and employment for the helicopter makers.