Sikorsky Aircraft Corp. again lifted year-over-year revenue in the first quarter, a period punctuated by senior executives vowing to move work elsewhere due to the high cost of doing business in Connecticut and by a renewed bid to design and manufacture a new presidential helicopter fleet in partnership with an erstwhile rival.
A subsidiary of Hartford-based United Technologies Corp., Sikorsky is the largest employer in Fairfield County with more than 9,000 workers.
In response to a reporter”™s question at the SBIR National Conference last month in Hartford, a senior UTC executive attempted to strike a balance on the “anywhere but Connecticut” rhetoric from UTC and Sikorsky executives at a March investment forum in New York City.
“We are a primarily a Connecticut-headquartered company,” said Michael McQuade, senior vice president of science and technology at UTC. “Yes, Connecticut is an expensive place to be in business, but ”¦ we have lots of key suppliers in this area, lots of key employees. It will continue to be a balance.”
Separately, Sikorsky and Lockheed Martin Corp. announced plans to make a joint bid to build a fleet of helicopters for the White House, more than four years after AgustaWestland and Bethesda, Md.-based Lockheed Martin beat out Sikorsky for the contract, flying an early prototype of the VH-71 helicopter in the fall of 2008 only to see the program canceled last year.
The CEO of Italy-based Finmeccanica SpA, AgustaWestland”™s parent company, expressed interest last month in reviving its bid for the program, according to Dow Jones Newswires.
The proposed “VXX” helicopter would replace the current fleet of Sikorsky-built presidential helicopters. Lockheed Martin would supply subsystems on board the helicopter.
Sikorsky and Lockheed Martin reached a memorandum of understanding to explore business opportunities involving other Sikorsky programs, without providing specifics.
“We”™ve had a relationship with Sikorsky on the MH-60-(R and S) helicopter programs ”¦ that”™s been good for Sikorsky, good for us and I think highly valued by our customers,” said Robert Stevens, CEO of Lockheed Martin, in a conference call with investment analysts after the partnership was announced. “We have learned a lot on the VH-71 program, ”¦ and our relationship with Sikorsky and our experience of working together being the mission system integrator on their (aircraft) has been a good and productive one that”™s familiar to us, familiar to them, and has given good value to customers. That”™s why we did what we did.”
Sikorsky sales came up just short of $1.4 billion in the first quarter, up 2 percent or about the cost of one of its S-92 helicopters. Operating profits totaled $145 million.
“Sikorsky came in a little bit light,” said Greg Hayes, chief financial officer of UTC, in a conference call with investors. “They delivered only two more helicopters this year than last year ”¦ Part of that is just the nature of the commercial business, (and) we had a little problem with some of the customers where we didn”™t get some things delivered that we probably could have.”
Still, Sikorsky was one of three divisions of Hartford-based United Technologies Corp. to lift year-over-year revenue in the quarter, along with Otis Elevator Co. and UTC Fire & Security, both based in Farmington. During the quarter, UTC completed its acquisition of the GE Security division of Fairfield-based General Electric Co., helping boost UTC Fire & Security results.
Companywide, UTC earned $866 million on $12.1 billion in revenue in the first quarter, with sales down 1 percent from a year earlier.
