Sypris Awarded Multi-Year Contract Extension With Global Truck OEM
April 19 2022 - 8:30AM
Business Wire
To Supply Drivetrain Components for
Commercial Vehicles
Sypris Technologies, Inc., a subsidiary of Sypris Solutions,
Inc. (Nasdaq/GM: SYPR), announced today that it has entered into a
multi-year contract extension to provide drivetrain components for
use in the production of medium and heavy-duty commercial vehicles
with a leading global commercial vehicle original equipment
manufacturer. Terms of the agreement were not disclosed.
The components produced by Sypris for use in the drivetrain of
medium and heavy-duty trucks are essential to the performance of
the drive axles of the vehicles. The award of the contract
extension is timely, for the commercial vehicle market is in the
midst of a multi-year expansion. The production of heavy-duty
vehicles increased 23.4% in 2021 from 2020, while the outlook for
2022 and 2023 includes additional growth of 11.9% and 21.6%,
respectively, according to an ACT Research report dated April 11,
2022.
This award follows the recent contract announcement made in
March regarding the long-term, sole-source contract extension to
provide drivetrain components for another longstanding customer,
which also included the addition of a new program to provide
components for use in the differential of side-by-side all-terrain
vehicles. The requirements for both customers are produced at the
Sypris manufacturing campus located in Toluca, Mexico.
Commenting on the announcement, Paul Larochelle, Vice President
and General Manager, stated, “We are pleased to extend our
strategic relationship with this key customer which is entering its
18th year. This partner is a global leader in the commercial
vehicle industry and we are a proud to supply them with quality
products in support of their reputation for high performance and
durability.”
Sypris Technologies, Inc. is a premier manufacturer and supplier
of drivetrain and other critical components for the commercial
vehicle, automotive, recreational vehicle, mining, agriculture,
industrial and energy markets. Sypris is headquartered in
Louisville, Kentucky. Through its operations in North America,
Sypris continues to meet the needs of the industry after more than
90 years of service. For more information about the Company, visit
its Web site at www.sypris.com.
Forward-Looking Statements
This press release contains “forward-looking” statements
within the meaning of the federal securities laws.
Forward-looking statements include our plans and expectations of
future financial and operational performance. Each forward-looking
statement herein is subject to risks and uncertainties, as detailed
in our most recent Form 10-K and Form 10-Q and other SEC
filings. Briefly, we currently believe that such risks also
include the following: our failure to achieve and maintain
profitability on a timely basis by steadily increasing our revenues
from profitable contracts with a diversified group of customers,
which would cause us to continue to use existing cash resources or
require us to sell assets to fund operating losses; our failure to
successfully complete final contract negotiations with regard to
our announced contract “orders”, “wins” or “awards”; our failure to
successfully win new business or develop new or improved products
or new markets for our products; the termination or non-renewal of
existing contracts by customers; breakdowns, relocations or major
repairs of machinery and equipment, especially in our Toluca Plant;
volatility of our customers’ forecasts especially in the commercial
truck markets and our contractual obligations to meet current
scheduling demands and production levels (especially in our Toluca
Plant), which may negatively impact our operational capacity and
our effectiveness to integrate new customers or suppliers, and in
turn cause increases in our inventory and working capital levels;
cost, quality and availability or lead times of raw materials such
as steel, component parts, natural gas or utilities including
increased cost relating to inflation; the impact of the current
coronavirus disease (“COVID-19”) and economic conditions on our
future operations; possible public policy response to the pandemic,
including U. S or foreign government legislation or restrictions
that may impact our operations or supply chain; the cost, quality,
timeliness, efficiency and yield of our operations and capital
investments, including the impact of inflation, tariffs, product
recalls or related liabilities, employee training, working capital,
production schedules, cycle times, scrap rates, injuries, wages,
overtime costs, freight or expediting costs; dependence on,
retention or recruitment of key employees and distribution of our
human capital; inaccurate data about markets, customers or business
conditions; disputes or litigation involving governmental,
supplier, customer, employee, creditor, stockholder, product
liability, warranty or environmental claims; our reliance on a few
key customers, third party vendors and sub-suppliers; inventory
valuation risks including excessive or obsolescent valuations or
price erosions of raw materials or component parts on hand or other
potential impairments, non-recoverability or write-offs of assets
or deferred costs; failure to adequately insure or to identify
product liability, environmental or other insurable risks;
unanticipated or uninsured product liability claims, disasters,
public health crises, losses or business risks; the costs of
compliance with regulatory or contractual obligations; labor
relations; strikes; union negotiations; costs associated with
environmental claims relating to properties previously owned;
pension valuation, health care or other benefit costs; our
inability to patent or otherwise protect our inventions or other
intellectual property from potential competitors; adverse impacts
of new technologies or other competitive pressures which increase
our costs or erode our margins; our reliance on revenues from
customers in the oil and gas and automotive markets, with
increasing consumer pressure for reductions in environmental
impacts attributed to greenhouse gas emissions and increased
vehicle fuel economy; changes in licenses or other legal rights to
operate, manage our work force or import and export as needed;
risks of foreign operations; currency exchange rates; war,
geopolitical conflict, terrorism, or political uncertainty,
including disruptions resulting from the conflict between Russia
and Ukraine arising out of international sanctions, foreign
currency fluctuations and other economic impacts; cyber security
threats and disruptions, including ransomware attacks on our
systems and the systems of third-party vendors and other parties
with which we conduct business, all of which may become more
pronounced in the event of geopolitical conflicts and other
uncertainties, such as the conflict in Ukraine; our ability to
maintain compliance with the Nasdaq listing standards minimum
closing bid price; or other unknown risks and uncertainties. We
undertake no obligation to update our forward-looking statements,
except as may be required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20220419005260/en/
Paul Larochelle Vice President & General
Manager (502) 420-1225
Sypris Solutions (NASDAQ:SYPR)
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