Shares of United Technologies Corp. climbed nearly 2% Thursday morning after the aerospace and defense company said late Wednesday it will review strategic alternatives for its Sikorsky aircraft business, including a possible spin off.
President and CEO Gregory Hayes said the company is considering whether a spin off of the unit “would allow United Technologies to better focus on providing high-technology systems and services to the aerospace and building industries.”
The strategic review should be concluded before the end of the year, UTX said, noting that a specific timetable has not been set and that a spin off or other transaction is not guaranteed.
UTX will discuss its plan to review strategic alternatives on the maker of Black Hawk and other helicopters at its annual investor meeting at 1:00 p.m. ET on Thursday.
The unit generated approximately $7.5 billion of UTX’s total sales of $65 billion in 2014, the Associated Press noted.
UTX was up 1.8% at $120.44 in recent morning trade, moving near the top end of the 52-week range of $97.30 to $124.45.