The president's $496 billion budget proposal for the military has nothing but good news for Sikorsky.
In it, the Pentagon plans to buy more Black Hawk helicopters than last year and to move forward with a new multibillion-dollar program for a combat rescue helicopter, the competition for which Sikorsky was the sole bidder.
Increased demand for Black Hawks — the major product of the company's Stratford plant — follow budget cuts that depressed orders, from 100 helicopters two years ago to 70 this year. The president's budget for the next fiscal year, beginning Oct. 1, asks for 79 Black Hawks, with the possibility for 28 more.
"With the overall budget, if it's untouched, Sikorsky comes out smelling like a rose," said analyst Mark Bobbi of MB Strategy Consulting, an aerospace firm in Florida.
From what I understand the current Presidential Budget is DOA on the Hill. The last budget-debt ceiling compromise set the spending levels for the next two years, so baring a major shift, we won't see much in the way of changes. The President is REQUIRED by law to submit a budget proposal every year; he's done so. The Congress is free to ignore that proposal if they choose to do so.
I would not bank on any immediate impact plus or minus, on Sik or UTX.