Sikorsky's first-quarter operating profit dropped 11 percent on a 7 percent fall in sales, according to results released on Tuesday. Commercial sales tumbled 26 percent.
The prime culprit? The decline in oil prices. A huge chunk of Sikorsky's nonmilitary business is for oil industry customers shuttling workers and equipment to offshore rigs. Moves by oil companies to cut back on expenses are affecting the helicopter industry.
"We are seeing pressure from the oil and gas segment," Paul Lundstrom, United Tech's vice president of investor relations, told analysts on a conference call.
Lundstrom called the quarter a "slow start" for Sikorsky, but added it was too early in the year for the company to cut financial forecasts.