Lockheed looks past oil slump for gain from Sikorsky deal

CHICAGO: Lockheed Martin Corp knew falling oil prices would dent drillers’ demand for heavy-lift Sikorsky helicopters as it paid US$9bil for the storied manufacturer last year. It just didn’t anticipate the extent of the crude collapse, chief executive officer Marillyn Hewson said in an interview.

While depressed commercial sales are taking some of the shine off the Sikorsky deal as the US rig count falls to a record low, Lockheed sees new opportunities to land military orders in Germany, Poland and Saudi Arabia. The acquisition is also expanding Lockheed’s international reach.