The head of Lockheed Martin Corp. on Wednesday declined to
comment on whether the company was interested in buying all or part
of Sikorsky Aircraft Corp., but said the defense company had the
financial capacity for large deals.
Lockheed Martin is among the companies exploring bids for the
helicopter maker, The Wall Street Journal reported earlier this
month, but such a move would mark a strategic shift as the world's
largest defense company has hitherto focused on providing systems
for rotorcraft rather than manufacturing and assembly.
"I'm not going to speculate about what we're going to do," said
Lockheed Martin Chief Executive Marillyn Hewson, when asked about
Sikorsky at an industry conference in New York.
United Technologies Corp. announced plans earlier this year to
explore strategic alternatives for Sikorsky, the Pentagon's largest
helicopter supplier, and aims to complete a review in the summer,
with a spinoff viewed as the most likely option.
Sikorsky had sales of $7.5 billion last year and could fetch $10
billion in a full sale, according to people familiar with the
review.
Lockheed spent around $900 million on a series of small
acquisitions last year, but Ms. Hewson didn't rule out larger deals
if opportunities arose.
"We have great debt capacity," she said, adding that the company
remains committed to returning most of its free cash to
shareholders over the next three years.
Lockheed is already a partner with Sikorsky on programs
including a planned new rescue helicopter for the Air Force and the
replacement for the rotorcraft used as Marine One by the U.S.
president. Lockheed has traditionally focused on providing
electronic systems rather than building the helicopter
platforms.
Boeing Co. and Airbus Group NV are also among the companies
exploring bids for Sikorsky or, alternatively, for a minority
stake.
Write to Doug Cameron at doug.cameron@wsj.com
Access Investor Kit for Lockheed Martin Corp.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US5398301094
Access Investor Kit for United Technologies Corp.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US9130171096
Subscribe to WSJ: http://online.wsj.com?mod=djnwires