United Technologies Corp. promised intensified restructuring at Stratford-based Sikorsky Aircraft Corp. and other divisions, indicating it would cut 1,600 additional jobs without specifying how many would occur in Connecticut.
As of the third quarter, UTC expected to record $39 million as a charge for restructuring expenses at Sikorsky, with 60 percent of those costs still to come. U.S. Rep. Rosa DeLauro recently disclosed that Sikorsky cut some 420 jobs in Stratford in an initial restructuring, attempting to do so in part by offering early retirement. Earlier this year, the company reported having 9,200 workers locally.
As of late October, the Connecticut Department of Labor had not posted any formal notification from UTC under the Worker Adjustment and Retraining Notification Act, a law designed to help the state assist individual workers in finding new jobs.
“We”™re going to do some additional restructuring at Sikorsky as we size the business for what”™s happening in the marketplace,” said Greg Hayes, CFO of UTC, in a mid-October conference call with investment analysts. “Black Hawk production has probably peaked this year and it will probably stay about flat into next year. ”¦ On the commercial side, order trends have not been great.”
Despite the dour outlook, Sikorsky cruised to a 21 percent increase in revenue in the third quarter. It earned $215 million in operating profits on sales of nearly $1.9 billion, helping to lift sales at UTC by 9 percent to $14.8 billion. It was easily the best performance of UTC”™s six divisions.
Sikorsky is also upgrading its Stratford offices, taking 165,000 square feet in Shelton as flex space to accommodate workers as it completes the renovations.
The manufacturer completed 73 large aircraft in the third quarter, nine more than the same period a year ago, though it again pushed back deliveries of maritime helicopters destined for Canada in one of its largest contracts that has been problematic.
The quarter was punctuated by UTC”™s $6.6 billion deal to acquire Goodrich Corp., a maker of various aviation and defense systems that would be UTC”™s biggest purchase ever.
Even as it readies to be absorbed into UTC, Goodrich filed plans to expand its Danbury plant where it has some 500 workers who produce sensors and optics for use in military, aircraft and satellite systems. Goodrich is planning an addition in Danbury at a cost of $1.1 million.
