CPI Aerostructures Inc.

10/17/2019 | Press release | Distributed by Public on 10/17/2019 07:07

Boeing Awards $48 Million A-10 Re-Winging Contract to CPI Aerostructures

Boeing Awards $48 Million A-10 Re-Winging Contract to CPI Aerostructures

Award Builds on 10+ Years of A-10 Support; CPI Aero to be Key Supplier to Boeing

Company Release - 10/17/20198:00 AMET

EDGEWOOD, N.Y., Oct. 17, 2019 (GLOBE NEWSWIRE) -- 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.

Contact:
Vincent Palazzolo Investor Relations Counsel:
Chief Financial Officer LHA Investor Relations
CPI Aero Jody Burfening/Sanjay M. Hurry
(631) 586-5200 (212) 838-3777
www.cpiaero.com [email protected]
www.lhai.com
Source: CPI Aerostructures, Inc.