Jul 1 2010
CPI Aerostructures, Inc. (“CPI Aero®”) (NYSE Amex: CVU) announced today it has received a purchase order for Outer Wing Panel (OWP) kits for use in the manufacture of wings for the E-2D Advanced Hawkeye and the C-2A Greyhound aircraft from Northrop Grumman Corporation valued at up to $27.6 million.
The purchase order includes firm, funded requirements valued at approximately $16.4 million and options valued at an additional $11.2 million. CPI Aero has received advanced funding authorization from Northrop Grumman for specific long lead-time activities.
CPI Aero received the initial order for E-2D OWP kits, valued at $7.9 million, in June 2008. This follow-on order increases the total value of funded orders received by CPI Aero for OWP kits to approximately $24.3 million. Including options, the order value of these kits is up to $35.5 million. The period of the contract, including options, is the second quarter of 2010 through the fourth quarter of 2013. The U.S. Navy’s program of record is for 75 E-2D Advanced Hawkeye aircraft. Potential program value to CPI Aero is approximately $98 million over an 8-year period, ending June 2016. The E-2D and the C-2A share common Outer Wing Panels, increasing the potential overall contract value to CPI Aero approximately $110 million through 2016.
Edward J. Fred, CPI Aero’s President & CEO stated, “We are quite pleased that the initial E-2D Outer Wing Panel contract is increasing in scope to include the C-2A aircraft and that CPI Aero is now an integral supplier to Northrop Grumman, the original equipment manufacturer, for two of the Navy’s critical carrier-based platforms. As a Northrop Grumman 'Supplier of the Year' in both the 'Structures' and 'Small Business' categories, we take great pride in our relationship with Northrop Grumman and will continue to strive to make this a completely successful program.”
Fred continued, “With this award, CPI Aero’s total year-to-date award amount from all customers is $30.9 million, compared to $4.8 million for the same period last year and $23.4 million for all of 2009. Of this year’s total, $25.6 million represents subcontract awards for both military and commercial aircraft from major aerospace companies, compared to $2.1 million of subcontract awards for the same period last year.”