Boeing Awards $48 Million A-10 Re-Winging Contract to CPI Aerostructures
October 17 2019 - 08:00AM
CPI Aerostructures, Inc. (“CPI Aero®”) (NYSE American: CVU)
announced today the receipt of an Indefinite Delivery/Indefinite
Quantity (IDIQ) contract with a maximum ceiling value of $48
million from Boeing (NYSE: BA) for structural assemblies for the
A-10 Thunderbolt II. Under the terms of the IDIQ, CPI Aero will
manufacture major structural subassemblies of the A-10 aircraft’s
wing. The Company also announced that it has received initial
purchase orders under the IDIQ contract valued at approximately $6
million for the production of 4 shipsets of assemblies and
associated program start-up costs. First delivery is expected to be
in late 2020. CPI Aero further announced that Boeing has stated its
intention to place additional firm production orders prior to May
2020 for between 23 and 40 production shipsets valued at between
$9.1 million and $14.7 million with deliveries commencing in 2021.
On August 21, 2019, Boeing announced an award from
the United States Air Force (USAF) with a maximum contract value of
$999 million to manage the production of up to 112 new wing sets
and spares kits for A-10 aircraft.
Douglas McCrosson, president and CEO of CPI Aero,
stated, “This award builds on our decade-long experience in
manufacturing wing structures for the A-10 and cements our role as
a key supply chain partner to Boeing on this aircraft to 2030 and
beyond. We are very honored to continue our work on one of the most
combat-proven aircraft in the world today, one that plays a vital
role in our national defense.”
About Boeing
Boeing is the world's largest aerospace company and
leading provider of commercial airplanes, defense, space and
security systems, and global services. As the top U.S. exporter,
the company supports commercial and government customers in more
than 150 countries. Boeing employs more than 150,000 people
worldwide and leverages the talents of a global supplier base.
Building on a legacy of aerospace leadership, Boeing continues to
lead in technology and innovation, deliver for its customers and
invest in its people and future growth.
About CPI Aero
CPI Aero is a U.S. manufacturer of structural
assemblies for fixed wing aircraft, helicopters and airborne
Intelligence Surveillance and Reconnaissance pod systems in both
the commercial aerospace and national security markets. Within the
global aerostructure supply chain, CPI Aero is either a Tier 1
supplier to aircraft OEMs or a Tier 2 subcontractor to major Tier 1
manufacturers. CPI also is a prime contractor to the U.S.
Department of Defense, primarily the Air Force. In conjunction with
its assembly operations, CPI Aero provides engineering, program
management, supply chain management, and MRO services. CPI Aero is
included in the Russell Microcap® Index.
The above statements include forward looking
statements that involve risks and uncertainties, which are
described from time to time in CPI Aero's SEC reports, including
CPI Aero's Form 10-K for the year ended December 31, 2018, and Form
10-Q for the three-month periods ended March 31, 2019 and June 30,
2019.
CPI Aero® is a registered trademark of CPI
Aerostructures, Inc. For more information, visit www.cpiaero.com,
and follow us on Twitter @CPIAERO.
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Contact: |
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Vincent Palazzolo |
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Investor Relations
Counsel: |
Chief Financial Officer |
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LHA Investor Relations |
CPI Aero |
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Jody Burfening/Sanjay M.
Hurry |
(631) 586-5200 |
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(212) 838-3777 |
www.cpiaero.com |
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cpiaero@lhai.com |
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www.lhai.com |
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