Erickson Inc. struggling financially

aircrane

Above: An Erickson Aircrane reloads with retardant while fighting the Beaver Fire in northern California, August 12, 2014. Photo by Bill Gabbert.

Last year Erickson had eight Type 1 firefighting helicopters, Aircranes like the one above, on exclusive use contracts with the U.S. Forest Service. There are none on the new contract that was issued February 26.

While it may be only partially related to losing those eight contracts, Erickson Inc. is struggling financially. Their stock, (EAC) that reached a 5-year high of $28.10 on May 13, 2013, has dropped like a stone since early in 2014 and Friday closed at 99 cents.

In 2012 and 2013 the company went on a buying spree, and purchased two companies that had a total of 78 aircraft. When Erickson acquired Evergreen Helicopters, Inc. (and their 64 aircraft) and the Brazilian company Air Amazonia (and their 14 helicopters), they no longer qualified as a “small business” and lost their eligibility to compete for the federal firefighting contract. Evergreen Helicopters had 400 employees. Last year Erickson laid off 150 workers.

Below is an excerpt from an article at Oregon Live:

…Erickson is not a big player in oil and gas. But it has its own problems. It recently lost a crucial wildfire fighting contract with the U.S. Forest Service. It also borrowed heavily three years ago to buy the helicopter business from Evergreen Aviation in McMinnville, only to see the U.S. defense business that was Evergreen’s forte go into a tailspin.

The toll on Erickson’s financial performance has been dramatic.

The company lost $10.2 million in 2014 and another $86.7 million in 2015. So far, 2016 has brought little relief, with Erickson losing another $26 million in its first quarter…

Erickson had six aircranes working in Australia during their 2015/2016 summer fire season.  There are still nine Sikorsky helicopters similar to the Aircrane that are on contract for the next one to four years in the United States. Helicopter Transport Services has five and Siller has four. The models are CH-54A, CH-54B, SK-64A and SK-64E.

3 thoughts on “Erickson Inc. struggling financially”

  1. Sad to see this company run into the ground by Management…I gave them 14 years 1993-2007 and it was an exciting time. Learned how not to manage a company!

  2. And with the low caliber pilots they have now flying helicopters and fixed wing air tankers around the rogue valley, it’s no wonder why Erickson is flailing. Their pilots poor choices of incessant and deliberate harassment of local homeowners on the ground will be their undoing.

  3. You want to be paid up front to do work for them as we are sitting with large receivables 6 months past due.

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