United Technologies, Canada Reach Deal on Delayed Helicopters


United Technologies Corp (NYSE:UTX-A) on Wednesday said its Sikorsky Aircraft unit would record sales of $850 million and a charge of $440 million in the second quarter after signing a revamped agreement with Canada for 28 maritime patrol helicopters.

The amendment to the long delayed C$5 billion ($4.61 billion) deal will allow Canada to retire its current fleet of Sea King helicopters in 2015, and accelerate efforts to start operating the new CH-148 Cyclone helicopters, the company said in a statement.

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It said the charge would be offset by one-time gains during the course of 2014 and would not have any effect on the company's earnings per share for the year.

United Technologies said its forecast for 2014 earnings per share remained unchanged at $6.65 to $6.85.

"This agreement clears the way for us to deliver the world's most advanced maritime helicopter capability to the Royal Canadian Air Force," said Sikorsky President Mick Maurer.

($1 = 1.0853 Canadian Dollars)

(Reporting by Andrea Shalal. Editing by Andre Grenon)