CPI Aero Receives $43.1 Million in New Firm Orders from Northrop Grumman for E-2D Advanced Hawkeye Wing Kits
June 16 2020 - 8:00AM
CPI Aerostructures, Inc. (“CPI Aero®”) (NYSE American: CVU)
announced today announced that it has received multiple purchase
orders valued in aggregate at approximately $43.1 million from
Northrop Grumman Corp. (NYSE: NOC) for outer wing panel kits used
in the manufacture of complete wings for the E-2D Advanced Hawkeye.
In February 2019, CPI Aero received an $8.1 million order for the
first year of a multi-year contract with an expected value of up to
$47.5 million. With the addition of these new orders the total
value of firm orders under the multi-year contract to CPI Aero is
approximately $51 million as the total expected quantity of wing
kits has increased.
"We have enjoyed an exceptional relationship with Northrop
Grumman since 2008 as part of 'Team Hawkeye'. Having provided the
structural kits used to manufacture the wings on every E-2D
Advanced Hawkeye in the U.S. Navy's fleet over that time, we are
very pleased to continue for the remainder of the current program
of record," stated Douglas McCrosson, chief executive officer of
CPI Aero. "Work under these new orders has already commenced with
the vast majority of revenue expected to be recognized in 2020 and
2021 with deliveries scheduled through 2023."
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, June 30, 2019, and September 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.
Investor Relations Contacts:
LHA Investor RelationsSanjay M. Hurry/Jody Burfening(212)
838-3777cpiaero@lhai.com www.lhai.com
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