Lockheed Martin Announces Sikorsky Purchase And Strategic Review Of Services Portfolio (From Forbes)
The world’s largest defense contractor is making big changes to its business mix as it announces plans to buy the Sikorsky helicopter unit of United Technologies and review $6 billion in services businesses for possible divestiture. Lockheed Martin Chairman & CEO Marillyn Hewson announced the changes Monday morning, describing Sikorsky as a good fit with her company’s aerospace and defense franchises, while explaining the strategic review of the services portfolio as a necessary response to changing market conditions. Over time, substitution of Sikorsky’s rotorcraft integration and sustainment revenues for commodity IT and other low-margin services could materially improve Lockheed’s financials, enabling the company to continue increasing shareholder value. I have written a commentary for Forbes here.
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