News
Erickson shifting its focus to oil, fire fighting clients
November 10, 2014 By The Portland Business Journal
Nov. 10, 2014, Portland, Or. - Erickson Inc. reported third quarter revenue of $118.3 million, a 1.6 percent decline it attributed to a drop in the Portland aviation firm's work for the Department of Defense.
The dip was offset by growth in its commercial segment, including a
new two-year contract with Agip Oil Ecuador to provide two medium-lift
helicopters to ferry workers involved with oil exploration activities in
Ecuador.
"We delivered solid performance during our peak season,
despite softness in fire activity across the globe. Recent contract wins
and proposal activity in both oil and gas and in our government segment
give us confidence in our long-term strategy," said Udo Rieder,
president and CEO. " We remain focused on diversification to achieve a
more balanced mix of end markets while positioning our business for
sustainable growth. We continue to see an excellent opportunity to
increase utilization of our fleet around the world."
For
the year to date, Erickson (NASDAQ: EAC) reported year-to-date earnings
of $273.4 million, 21 percent higher than the same period the prior
year, when it completed its acquisition of Evergreen Helicopters Inc.
Its
revenue from government contracts decreased 8.1 percent to $85.4
million, which the company attributed to declining Department of Defense
activity in Afghanistan. Erickson said it flew fewer hours that
expected on firefighting missions in Greece and the U.S. but the losses
were offset by more fire activity in Turkey.
Its commercial
revenue increased 20.7 percent to $33 million. The increase was due to
increased oil and gas activity in South America and revenue from selling
aircraft.
The company said it expects to close the year with $350
million to $370 million in revenue, or 35 cents to 75 cents diluted
earnings per share.
