United Technologies Announces Agreement With Government of Canada for the
Maritime Helicopter Program; Reaffirms 2014 EPS Expectations of $6.65 to $6.85
HARTFORD, Conn., June 18, 2014
HARTFORD, Conn., June 18, 2014 /PRNewswire/ -- United Technologies Corp.
(NYSE: UTX) today announced Sikorsky Aircraft Corp.'s signing of a contract
amendment with the Government of Canada on the Canadian Maritime Helicopter
Program, pursuant to the previously disclosed Principles of Agreement. The
amended contract enables Canada's Department of National Defense to take
delivery of operationally relevant CH148 Cyclone helicopters and facilitates
retirement of the Sea King fleet starting in 2015.
United Technologies Corp.
As a result of the amended agreement, Sikorsky will record sales of
approximately $850 million and a charge of $440 million in the second quarter
of 2014 reflecting the cumulative effect of progress to date toward completion
of the program, as modified. UTC anticipates the second quarter charge will
be offset by one-time gains during the course of 2014 and will have no effect
on earnings per share for the year. Accordingly, UTC continues to expect 2014
earnings per share in the range of $6.65 to $6.85, as previously communicated.
United Technologies Corp., based in Hartford, Connecticut, provides high
technology products and services to the building and aerospace industries. For
more information, visit our website at www.utc.com or follow us on Twitter:
This press release includes statements that constitute "forward-looking
statements" under the securities laws. Forward-looking statements often
contain words such as "believe," "expect," "plans," "project," "target,"
"anticipate," "will," "should," "see," "guidance," "confident" and similar
terms. Forward-looking statements may include, among other things, statements
relating to future and estimated sales, earnings, cash flow, charges,
expenditures, share repurchases and other measures of financial performance.
All forward-looking statements involve risks, uncertainties and assumptions
that may cause actual results to differ materially from those expressed or
implied in the forward-looking statements. Risks and uncertainties include,
without limitation, the effect of economic conditions in the markets in which
we operate, including financial market conditions, fluctuation in commodity
prices, interest rates and foreign currency exchange rates; future levels of
research and development spending; levels of end market demand in construction
and in the aerospace industry; levels of air travel; financial difficulties of
commercial airlines; the impact of changes in government budget and
procurement funding and priorities ; weather conditions and natural
disasters; delays and disruption in delivery of materials and services from
suppliers; company and customer directed cost reduction efforts and
restructuring costs and consequences thereof; the impact of acquisitions,
dispositions, joint ventures and similar transactions; challenges in the
development and production of new products and services, including the
programs discussed in this press release ; the impact of diversification
across product lines, regions and industries; the outcome of legal
proceedings, investigations and other contingencies; pension plan assumptions
and future contributions; the effect of changes in tax, environmental and
other laws and regulations and political conditions; and other factors beyond
our control. The level of share repurchases depends upon market conditions and
other investing activities and uses of cash. The forward-looking statements
speak only as of the date of this press release and we undertake no obligation
to update or revise any forward-looking statements as of a later date. For
additional information identifying factors that may cause actual results to
vary materially from those stated in forward-looking statements, see our
reports on Forms 10-K, 10-Q and 8-K filed with the SEC from time to time,
including, but not limited to, the information included in UTC's Forms 10-K
and 10-Q under the headings "Business," "Risk Factors," "Management's
Discussion and Analysis of Financial Condition and Results of Operations" and
"Legal Proceedings" and in the notes to the financial statements included in
UTC's Forms 10-K and 10-Q.
Contact: Danielle Smith
SOURCE United Technologies Corp.
Press spacebar to pause and continue. Press esc to stop.