Erickson Air-Crane Inc. (EAC) has received two contracts, one each from Helifor Canada and Western Forest Products Inc. The values of these contracts are in the range of $18-$23 million. Besides providing the S-64E model helicopter, the company will offer pilots, full-field maintenance support crew, parts and components to both the parties under the contract.
The Erickson S-64E Aircrane is a flexible and a powerful, commercial heavy-lift helicopter. It has the capacity to lift up to 20,000 pounds of weight at a time along with pilots, the entire field maintenance support crew and parts. The S-64E Aircrane also has a rear load-facing cockpit with complete aircraft control for precision lift and load placement capabilities.
Per the agreement with Helifor Canada, Erickson Air-Crane will offer logging services and build a transmission tower in British Columbia, Western Canada. The company will provide all the support through its unit Canadian Air-Crane. The transaction is valued at $8-$10 million and will continue till Dec 31, 2013. In addition, the company will provide specialized lift services for the precision placement of transmission towers in the power-line building.
As per the renewal contract with Western Forest Products Inc., Erickson Air-Crane will offer aerial support for the year-round selective logging attempts in Alberta and British Columbia. The transaction is valued at $10-$13 million. Moreover, the S-64E will be utilized to remove fir and red cedar trees in the difficult territories on isolated timberlands.
Over the last 40 years, Erickson has enjoyed a long-standing business association with the Canadian companies and tries to meet its commitments in terms of maintaining product and service standards along with delivery timing. This is the third consecutive year that Helifor signed deal with Erickson for heavy-lift aerial services.
Portland, OR.-based Erickson Air-Crane Inc. manufactures and operates Erickson S-64 Aircrane heavy-lift helicopters. The company operates through two segments: Aerial Services as well as Aircraft Manufacturing and Maintenance, Repair, and Overhaul.
In 2012, Erickson Air-Crane completed the purchase of the Sun Bird Aircraft and associated spare parts inventory and accessories from SDG&E, a subsidiary of Sempra Energy (SRE). The company is also expected to complete the acquisition of Air Amazonia’s aerial services business from HRT Participacoes em Petroleo, S.A. in the near term. These acquisitions, going forward, will continue to strengthen Erickson’s leading position in the heavy-lift market.
However, apprehensions over the future growth of the U.S. defense budgets remain concerns for Erickson Air-Crane.
Erickson Air-Crane Inc. currently has a Zacks Rank #3 (Hold). Other stocks from the sector that are presently performing better include Zacks Ranked #2 The Boeing Company (BA) and Lockheed Martin Corporation (LMT), with a Buy rating.
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