Report: Sikorsky Spinoff or Divestiture Possible

Sources inside United Technologies Corporation (UTC), the owner of Sikorsky Aircraft, say the parent corporation is considering divesting, spinning off or merging the helicopter manufacturer, according to a report in Defense News Monday.

While both UTC and Sikorsky representatives declined comment to the publication, unnamed sources told Defense News Sikorsky could serve as a “tempting target” for European companies trying to break into the American defense market.

"Now that there’s some stability and visibility in the future years defense budgets, plans that had been developed in closed board rooms over the last two years of a volatile market are going to become public,” Pentagon official Brett Lambert told Defense News.

The news comes just one week after President Obama signed a budget containing $3.3 million in defense spending, enough funds to keep Sikorsky’s 6,000 workers employed and open the door to further development opportunities, including a new Air Force combat search-and-rescue helicopter. Sen. Chris Murphy called the move a “home run” for Sikorsky.

Nonetheless, sales have been declining for Sikorsky, according to Defense News. The company’s 2013 earnings were down one percent, and net sales down nine percent, based on figures released Jan. 22.

Aside from Sikorsky, UTC owns companies ranging from aerospace research and development to wind turbine manufacturers, including the aircraft manufacture company Pratt & Whitney. UTC is based in Hartford, Conn.