Sales Were Half What LMC Expected From The Helo Manufacturer

While the recent plunge in oil prices has meant relief at the pump for everyone who drives, it has also meant a sharp drop in sales for Sikorsky, according to Lockheed Martin.

The Hartford Courant reports that LMC CFO Bruce Tanner gave the bad news to analysts with the release of fourth quarter sales figures. According to Tanner, commercial sales of Sikorsky helicopters in the period are expected to be $375 million, which was about 50 percent of the projected $750 million for the year. In 2014, Sikorsky's sales were about $1.5 billion.

The slide in oil prices has meant less transportation of workers to oil rigs offshore, and a cutback in offshore exploration by oil producers.

Sikorsky's military business is also seeing some turbulence with the force reductions in Afghanistan and Iraq, but at least one analyst told the paper that the military slide has likely bottomed out, and a multiyear upturn is likely on the horizon.

Lockheed Martin CEO Marillyn Hewson said this week that the company is getting increased interest for opportunities in the SAR markets in the Middle East, Asia, and Eastern Europe.

Tanner said the U.S. Coast Guard may also be a future customer, but even if those deals are made this year, they would not have a major impact on the bottom line in the near term.

(Image from file)

FMI: www.sikorsky.com