Home Technology Lockheed Martin to Buy Sikorsky Aircraft for $9 Billion

Lockheed Martin to Buy Sikorsky Aircraft for $9 Billion

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Lockheed Martin is buying Black Hawk Helicopter maker Sikorsky Aircraft for $9 billion. United Technologies Corp. had stated in June that it planned to shed Sikorsky either through an outright sale or a spinoff. The aerospace and buildings system conglomerate said that it wants to focus on high technology systems and services for the aerospace and building industries. It is imperative to state that aside from Black Hawk Helicopters, Sikorsky makes presidential helicopters and have been used to bring astronauts home after they splashed down in the Pacific Ocean at the end of their space travels. United Technologies added that they plan on using the sales proceeds for additional stock buybacks.

Lockheed Martin said that it plans to add Sikorsky to its mission systems and training units. The company said that it plans to fund the acquisition through cash and new debt issuances. The company also reported its quarterly results today. The company reported net earnings of $929 million or $2.94 per share which was higher than what the company had reported in the same period last year and is being seen as a huge positive. Analysts on the street had an earnings per share estimate of $2.66. Shares of Lockheed Martin were higher by close to 2 percent in pre-market trading.

Shares of Lockheed Martin have outperformed the broader markets since the beginning of the year and have risen by close to 4.4. Analysts continue to remain positive about the long term growth trajectory of the company and believe that every dip in the stock should be used as a buying opportunity by investors with a long term investment horizon. The price volume action seen today is a clear indication of the thumbs up given to the company for the acquisition announced as well as a stellar set of earnings results.