Sikorsky sales drop in second quarter on Black Hawk
Sikorsky Aircraft sales sank by $105 million in the second quarter, parent company Lockheed Martin reported Tuesday, driven by declining demand for Black Hawk helicopters even as the company ramps up production of a new chopper for the Marine Corps.
Stratford-based Sikorsky is the largest corporate employer in southwestern Connecticut, with Lockheed Martin based in Bethesda, Md.
Lockheed Martin revenue rose 7 percent from a year earlier to $13.4 billion in the second quarter, with the company’s earnings up 22 percent to $1.2 billion, with Sikorsky improving its own profitability by $10 million. Lockheed Martin earmarked $96 million during the quarter for restructuring and severance costs in the Rotary and Mission Systems division that includes Sikorsky, radar and electronic warfare systems.
Lockheed Martin does not break out Sikorsky’s total revenue and profitability totals on a quarter-to-quarter basis. The Rotary and Mission Systems division had a 26 percent increase in profits to $371 million, with revenue up 4 percent to $3.6 billion.
While sales of Black Hawk helicopters have declined, Sikorsky is starting to benefit from a higher volume of work on the CH-53K King Stallion helicopter designed to carry large loads in combat theaters, with the Marines eyeing as many as 200 or more helicopters in a contract that could top $30 billion. Sikorsky is now exploring Germany’s interest in the CH-53K.
Sikorsky did not disclose any major new sales contracts at last week’s Farnborough International Airshow in the United Kingdom, as the case with other major helicopter manufacturers like Airbus, Bell, Boeing and Leonardo.
Lockheed Martin reported an effective income tax rate of 18.1 percent in the second quarter, down from 28.8 percent a year ago due largely to the federal Tax Cuts and Jobs Act of 2017.
Alex.Soule@scni.com; 203-842-2545; @casoulman