HARTFORD, Conn., June 18, 2014 /PRNewswire/ -- United Technologies Corp. (NYSE: UTX) today announced Sikorsky Aircraft Corp.'s signing of a contract amendment with the Government of Canada on the Canadian Maritime Helicopter Program, pursuant to the previously disclosed Principles of Agreement. The amended contract enables Canada's Department of National Defense to take delivery of operationally relevant CH148 Cyclone helicopters and facilitates retirement of the Sea King fleet starting in 2015.
As a result of the amended agreement, Sikorsky will record sales of approximately $850 million and a charge of $440 million in the second quarter of 2014 reflecting the cumulative effect of progress to date toward completion of the program, as modified. UTC anticipates the second quarter charge will be offset by one-time gains during the course of 2014 and will have no effect on earnings per share for the year. Accordingly, UTC continues to expect 2014 earnings per share in the range of $6.65 to $6.85, as previously communicated.
United Technologies Corp., based in Hartford, Connecticut, provides high technology products and services to the building and aerospace industries. For more information, visit our website at www.utc.com or follow us on Twitter: @UTC.
This press release includes statements that constitute "forward-looking statements" under the securities laws. Forward-looking statements often contain words such as "believe," "expect," "plans," "project," "target," "anticipate," "will," "should," "see," "guidance," "confident" and similar terms. Forward-looking statements may include, among other things, statements relating to future and estimated sales, earnings, cash flow, charges, expenditures, share repurchases and other measures of financial performance. All forward-looking statements involve risks, uncertainties and assumptions that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. Risks and uncertainties include, without limitation, the effect of economic conditions in the markets in which we operate, including financial market conditions, fluctuation in commodity prices, interest rates and foreign currency exchange rates; future levels of research and development spending; levels of end market demand in construction and in the aerospace industry; levels of air travel; financial difficulties of commercial airlines; the impact of changes in government budget and procurement funding and priorities ; weather conditions and natural disasters; delays and disruption in delivery of materials and services from suppliers; company and customer directed cost reduction efforts and restructuring costs and consequences thereof; the impact of acquisitions, dispositions, joint ventures and similar transactions; challenges in the development and production of new products and services, including the programs discussed in this press release ; the impact of diversification across product lines, regions and industries; the outcome of legal proceedings, investigations and other contingencies; pension plan assumptions and future contributions; the effect of changes in tax, environmental and other laws and regulations and political conditions; and other factors beyond our control. The level of share repurchases depends upon market conditions and other investing activities and uses of cash. The forward-looking statements speak only as of the date of this press release and we undertake no obligation to update or revise any forward-looking statements as of a later date. For additional information identifying factors that may cause actual results to vary materially from those stated in forward-looking statements, see our reports on Forms 10-K, 10-Q and 8-K filed with the SEC from time to time, including, but not limited to, the information included in UTC's Forms 10-K and 10-Q under the headings "Business," "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Legal Proceedings" and in the notes to the financial statements included in UTC's Forms 10-K and 10-Q.
Contact: Danielle Smith
SOURCE United Technologies Corp.