WASHINGTON (Reuters) - Lockheed Martin Corp (N:LMT) has "no regrets" about buying Sikorsky for $9 billion even though sliding oil prices have taken a bigger bite than expected from the company's commercial helicopter sales, Chief Executive Marillyn Hewson said Tuesday.
Hewson told reporters at the company's annual media day that buying Sikorsky from United Technologies Corp (N:UTX) was "absolutely a great opportunity" and Lockheed remained confident about its long-term prospects, despite the drop in commercial sales as energy companies have slashed spending.
She said she expected oil prices to recover over the longer term.
Lockheed Chief Financial Officer Bruce Tanner rejected speculation that Lockheed had paid 20 times Sikorsky's earnings before interest, taxes, depreciation and amortization, and said that was an "overstated number."
He told Reuters in an interview that Lockheed remained upbeat about Sikorsky's longer-term prospects, and said its cash generation would also increase as it moved ahead on several U.S. military development programs, including a new presidential helicopter program.