3 Good Reasons for United Tech to Sell SikorskySikorsky’s CH-53E Super Stallion helicopter – the biggest helo in America. Source: Wikimedia Commons

Big Helicopters – Tiny BusinessSikorsky is United

Technologies' smallest business.

With $6.25 billion in revenues last year, Sikorsky is barely

half the size of United Tech's

second smallest business (Otis

elevators).

Otis Elevator Company Building in Portland, Ore. Source: Wikimedia Commons

Big Helicopters – Puny ProfitsSikorsky is also UTC’s

least profitable business. Its 10.3%

operating profit margin is worse than what UTC

earns at any other division.

Ex-Sikorsky, UTC would earn operating margins of 15.6% on average -- half again as good as Sikorsky. Otis alone earns a 21.4% profit

margin!

The innards of an Otis elevator. Source: Wikimedia Commons

Outclassed by the Competition?For that matter, Sikorsky

may be the least profitable helicopter

business in the country. Kaman gets 15.3% profit

margins from its aerospace business.

Textron Bell gets 12.7%. Only Boeing earns

military aircraft (helos and fixed-wings)

margins worse than Sikorsky produces --

9.2%.

A Sikorsky rival: Kaman’s Sea Sprite. Source: Wikimedia Commons

But none of that is the point.

From a purely financial perspective, it might seem like it would make sense for United Technologies to dump a less profitable division, and focus on businesses that make it more money.

But there are even better reasons for United Technologies to try to keep the Sikorsky brand in-house.

Reasons like...

4 Better Reasons for United Tech to Keep SikorskySikorsky’s UH-60L Blackhawk helicopter – the best-selling helo in the world. Source: Wikimedia Commons

UH-60L BlackhawkSikorsky makes

the world's most popular combat

helicopter – the Blackhawk.

Along with derivations such as the U.S. Navy’s

SH-60 Seahawk and HH-60G Pave Hawk used by

U.S. Special Forces, Sikorsky’s Blackhawk helicopter is the best-

selling helicopter in the world.

HH-60G Pave Hawks at work in Iraq. Source: Wikimedia Commons

CH-53E Super StallionIn addition to its

ubiquitous Blackhawks, Sikorsky boasts the

biggest helicopter in the Western world – the CH-53E Super

Stallion. Nearly 100 feet long and

28 feet tall, the Super Stallion can haul close to 18 tons of cargo, or carry as many as 55 soldiers in

its capacious hold.

Sikorsky’s biggest bird: the CH-53E Super Stallion. Source: Wikimedia Commons

“Marine One” Bragging RightsProducts like the

Blackhawk and Super Stallion made Sikorsky

famous. But the company’s marquee

product is the Presidential Helicopter,

“Marine One.”Sikorsky built President Obama’s helo – and is

in line to win the contract for the new

fleet of “Marine Ones,” as well.

Sikorsky H-3 Sea King departs the White House Lawn. Source: Wikimedia Commons

Present at the BeginningIt may be United

Technologies’ smallest division today, but

Sikorsky has been an integral part of UTC since 1929 — back

before Sikorsky was even building helicopters.

Back when it was still building planes like the Sikorsky Clipper flying

boat.

Sikorsky’s Clipper, c. 1935. Source: Wikimedia Commons

And so you see, United Technologies really wouldn’t be

United Technologies anymore without Sikorsky.

It might be a very profitable producer of elevators and HVAC systems...

It might be a producer of quality airplane engines...

but it wouldn’t be United Technologies...

... without its crown jewel.

Without Sikorsky.

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