CPI Aerostructures Awarded Additional $12.5 Million by Raytheon for Next Generation Jammer Mid-Band
August 30 2018 - 8:00AM
CPI Aerostructures, Inc. (“CPI Aero®”) (NYSE MKT: American)
announced today that Raytheon Company (NYSE: RTN) has awarded CPI
Aero modified purchase orders totaling $12.5 million related to the
Engineering and Manufacturing Development (EMD) phase of Next
Generation Jammer Mid-Band (NGJ-MB). Previously, Raytheon
awarded CPI Aero a $4 million contract for pod structural housings
in July 2016 and a $2.7 million contract in September 2016 to
manufacture Air Management System (AMS) door and duct assemblies
that are installed within the pod housing. The contract
modifications announced today, which increase the total value to
CPI Aero for the EMD phase to more than $19 million, are for work
scope changes associated with these earlier contracts, including
additional systems integration efforts that will be performed
during CPI Aero’s build-up of the pod assembly. CPI Aero
expects to complete its work for the EMD phase systems in late
2019.
In 2016, the U.S. Navy awarded Raytheon a $1 billion NGJ-MB
Engineering and Manufacturing Development contract. The capability
will augment, and eventually replace the ALQ-99 system on the U.S.
Navy’s EA-18G Growler carrier-based electronic warfare aircraft.
There are two pods per EA-18G aircraft. CPI Aero estimates that the
total value to CPI Aero of the NGJ-MB production phase could be in
excess of an additional $150 million through 2030.
Douglas J. McCrosson, president and CEO of CPI Aero, stated, “We
are honored that Raytheon, one of the leading aerospace and defense
companies in the world, has recognized the value added by our team
to date toward the success of the NGJ-MB pod program.
Raytheon has done a tremendous job of embracing key suppliers such
as CPI Aero within the integrated product team and we are proud to
play an important role in transferring this critical electronic
warfare capability from development into the hands of our
warfighters.”
About CPI AeroCPI 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, 2017, and Form 10-Q for the three-month
periods ended March 31, 2018 and June 30, 2018.
CPI Aero® is a registered trademark of CPI Aerostructures, Inc.
For more information, visit www.cpiaero.com, and follow us on
Twitter @CPIAERO.
Contact:
Vincent
Palazzolo Chief Financial Officer CPI Aero (631)
586-5200 www.cpiaero.com |
|
Investor
Relations Counsel:LHAJody Burfening/Sanjay M. Hurry (212)
838-3777cpiaero@lhai.comwww.lhai.com |
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