Tags: jobs | cuts | unemployment | aircraft

Sikorsky to Cut 1,400 Jobs as Helicopter Demand Falls on Oil

Wednesday, 03 Jun 2015 02:36 AM

Sikorsky Aircraft, the United Technologies Corp. unit poised for a sale or spinoff, plans to cut about 1,400 jobs in the next year as the global rout in crude markets saps demand for helicopters.

Employee and contract positions are being eliminated in Connecticut, Pennsylvania and Poland, said Paul Jackson, a Sikorsky spokesman. The company also will consolidate some manufacturing operations, he said Tuesday in a statement.

“Sustained decreases in oil prices continue to drive significant declines in capital investments by oil companies in offshore oil exploration projects,” Jackson said. “Additionally, Sikorsky continues to experience softness in demand for certain international military products.”

The pullback shows the strain on some manufacturers from the oil-price collapse that began in 2014 and dragged West Texas Intermediate, the U.S. benchmark, to a six-year low in March. Global helicopter shipments tumbled 18 percent in the first quarter from a year earlier, according to the General Aviation Manufacturers Association trade group in Washington.

United Technologies rose 0.3 percent to $117.34 at the close in New York. The stock’s 2 percent gain this year beat the 0.9 percent drop for the Standard & Poor’s 500 Industrials Index.

The company is divesting the 90-year-old Sikorsky unit to focus on its aerospace, jet-engine and building services businesses. Chief Executive Officer Gregory Hayes has said he expects to announce plans for the disposition this month.

Sikorsky’s customers include commercial operators along with the U.S. government. The company builds VIP models for the U.S. president and supplies the Black Hawk military helicopter to more than two dozen governments around the world. Sales last year were $7.5 billion.

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Sikorsky Aircraft, the United Technologies Corp. unit poised for a sale or spinoff, plans to cut about 1,400 jobs in the next year as the global rout in crude markets saps demand for helicopters.
jobs, cuts, unemployment, aircraft
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2015-36-03
Wednesday, 03 Jun 2015 02:36 AM
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