Gregory Hayes: UTC Sikorsky Spinoff Part of Board’s Strategic Review

Gregory Hayes
Gregory Hayes

United Technologies Corp. CEO Gregory Hayes has said the possible spinoff of UTC’s Sikorsky Aircraft unit aims to strategically position the standalone helicopter company and the commercial aerospace and buildings business, he told CNBC in an interview aired Thursday.

Tom DiChristopher writes UTC’s board of directors authorized a review of options for Sikorsky earlier this week, including the potential tax-free spinoff of the $7 billion business.

“The issue with Sikorsky here is not that Sikorsky is a bad business… As we think about the portfolio, though, it’s really a question of, ‘How do you position yourself for above GDP growth, for higher margin into the future?'” Hayes told CNBC’s Squawk Box program.

He said that despite a level of uncertainty in the Defense Department market for Sikorsky’s helicopters, the business still has a “solid future” with $16 billion in backlogs and a 10-percent profit margin.

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