United Tech reaches helicopter deal with Canada

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Associated Press

Posted on June 18, 2014 at 7:02 PM

Updated Wednesday, Jun 18 at 7:07 PM

HARTFORD, Conn. (AP) — United Technologies says its Sikorsky Aircraft division has signed a deal with Canada for the delivery of 28 maritime helicopters, ending a long and costly dispute.

The delivery of the helicopters was originally scheduled to begin in 2012. But Sikorsky and Canadian officials clashed over production, support and other issues.

Hartford-based United Technologies Corp. says Sikorsky will book sales of about $850 million and a charge of $440 million in the second quarter related to the deal. The charge will be offset by one-time gains over the course of the year so its full-year earnings outlook remains unchanged.

Canada says the deal will allow it begin retiring its fleet of Sea King helicopters in 2015.

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