Sikorsky spinoff?
Thread Starter
Evil Twin,
Maybe Lockheed will sell the 300 to Piper or somebody that can build them. Thanks for the link Sultan! Seems like Lockheed does not share your view of Sikorsky. Oh well, what do they know anyway?
Maybe Lockheed will sell the 300 to Piper or somebody that can build them. Thanks for the link Sultan! Seems like Lockheed does not share your view of Sikorsky. Oh well, what do they know anyway?
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Official announcement now made:
Lockheed Martin to acquire Sikorsky Aircraft and conduct strategic review of IT and Technical Services businesses
Plus dedicated micro-site: Lockheed Martin to acquire Sikorsky Aircraft
I/C
Lockheed Martin to acquire Sikorsky Aircraft and conduct strategic review of IT and Technical Services businesses
Plus dedicated micro-site: Lockheed Martin to acquire Sikorsky Aircraft
I/C
Ian, this makes some sense. As I recall, when the Seahawk LAMPS Mk III program was awarded, IBM federal systems division was the prime and Sikorsky the sub who provided the airframe. In due time, Federal Systems (or part of it) was sold to Loral who ended up being assimilated into the LM borg.
One can see that Sikorsky and LM have had a long relationship in systems development, which suggests to me that LM has a good idea of Sikorsky's strengths and weaknesses. Of all the buyers, this is probably a best fit.
IFMU: (just in case your post was not tongue in cheek ... ) 
I'd say LM knows Sikorsky pretty well, having worked a lot of systems integration with them on various helicopter programs for about 20 years.
One can see that Sikorsky and LM have had a long relationship in systems development, which suggests to me that LM has a good idea of Sikorsky's strengths and weaknesses. Of all the buyers, this is probably a best fit.
Originally Posted by wiki
Lockheed Martin Systems Integration – Owego (LMSI) Originally
founded as IBM Federal Systems in 1957, it was sold to Loral Corporation in 1994. Subsequently, Lockheed Martin acquired Loral's electronic systems and systems integration business in 1996. In 2010, Systems Integration was dissolved and merged with Lockheed Martin Mission Systems and Sensors and Lockheed Martin Missiles and Fire Control.
founded as IBM Federal Systems in 1957, it was sold to Loral Corporation in 1994. Subsequently, Lockheed Martin acquired Loral's electronic systems and systems integration business in 1996. In 2010, Systems Integration was dissolved and merged with Lockheed Martin Mission Systems and Sensors and Lockheed Martin Missiles and Fire Control.
I'd say LM knows Sikorsky pretty well, having worked a lot of systems integration with them on various helicopter programs for about 20 years.
Last edited by Lonewolf_50; 20th Jul 2015 at 20:36. Reason: The thread was moved so other post I deleted.
Thread Starter
LW50,
That was totally tounge in cheek, primarily for the sultan's benefit. Interesting watching the market this AM. LMT is up 2%, UTX down 0.65% when I last looked. It would seem the market approves of Lockheed's purchase.
That was totally tounge in cheek, primarily for the sultan's benefit. Interesting watching the market this AM. LMT is up 2%, UTX down 0.65% when I last looked. It would seem the market approves of Lockheed's purchase.
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Wouldn't that make Lockheed a player in both FVL entries?
Wouldn't be the first time for LM. Remember the predecessor to JMR/FVL, the JHL program.
Lockheed Martin and Karem Aircraft Team to Support Department of Defense Joint... -- re> PALMDALE, Calif., Feb. 29 /PRNewswire/ --
IMFU
I always need something to laugh at. From AvWeek:
This does not bode well for the commercial side. The whole article has more details such as LM is only coughing up $1B and assuming $6B of debt and the US taxpayers paying another $2B in tax breaks. $1B is nothing to LM as they have gotten away with charging $150M for a fighter that was suppose to cost no more than $60M and have been in service years ago. Nice business if you can get it.
The Sultan
I always need something to laugh at. From AvWeek:
Furthermore, Lockheed does not expect Sikorsky to be accretive, or profitable, to its bottom line until 2017, with net proceeds eventually reaching about $150 million per year coming from the addition of the company. Tanner said Lockheed looks to integrate Sikorsky quickly, and cost savings will be found in streamlining supply chains, along with cutting some workforce and facilities.
The Sultan
IMFU
looks like UTC is down nearly 8% today so someones not happy.
The Sultan
Interesting watching the market this AM. LMT is up 2%, UTX down 0.65% when I last looked. It would seem the market approves of Lockheed's purchase.
The Sultan
Thread Starter
Sultan,
If course they are not happy! They just sold Sikorsky!
Actually I think that has little to do with it. Their profits are down, they are missing projected earnings and so on. Soft aftermarket sales for UTAS and less elevator business for Otis in China, I believe they said.
Interesting times any way you look at it.
If course they are not happy! They just sold Sikorsky!
Actually I think that has little to do with it. Their profits are down, they are missing projected earnings and so on. Soft aftermarket sales for UTAS and less elevator business for Otis in China, I believe they said.
Interesting times any way you look at it.
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The market never responds well to profit warnings. Not that Monday's stock performance was a ringing endorsement of the Sikorsky disposal.
Given that the head of the Light Helicopter range now *also* has the S-92 Program to Direct, you're probably right.
I/C
Originally Posted by Evil Twin
Probably a very bad time to be buying or selling a 300CBi
I/C
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I don't see how the commercial helo market would be attractive. How would you expect much profit from selling just 90 S-92s?
On the other hand, the military market has potential. 53Ks and H60s will provide billions in cash flow for the next decade. A guaranteed 8-10% profit margin on $2B in annual revenues for the next 10 years is probably acceptable for LM shareholders, but apparently not enough for UTC shareholders.
On the other hand, the military market has potential. 53Ks and H60s will provide billions in cash flow for the next decade. A guaranteed 8-10% profit margin on $2B in annual revenues for the next 10 years is probably acceptable for LM shareholders, but apparently not enough for UTC shareholders.
