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United Technologies Corp. on June 18 announced Sikorsky Aircraft Corp.’s signing of a contract amendment with the Government of Canada on the Canadian Maritime Helicopter Program, pursuant to the previously disclosed Principles of Agreement. The amended contract enables Canada’s Department of National Defence to take delivery of operationally relevant CH-148 Cyclone helicopters and facilitates retirement of the Sea King fleet starting in 2015.
As a result of the amended agreement, Sikorsky will record sales of approximately $850 million and a charge of $440 million in the second quarter of 2014 reflecting the cumulative effect of progress to date toward completion of the program, as modified. UTC anticipates the second quarter charge will be offset by one-time gains during the course of 2014 and will have no effect on earnings per share for the year. Accordingly, UTC continues to expect 2014 earnings per share in the range of $6.65 to $6.85, as previously communicated.
