- CAD $80 million projected revenue from contract extensions
Common Stock Listed
Trading Symbol: AVP
VANCOUVER, Aug. 21, 2012 /PRNewswire/ - Avcorp Industries Inc. (AVP on the Toronto Stock Exchange) (the Company) is pleased to announce the signing of a five-year contract extension with Boeing to provide the wheel well for the Next-Generation 737 as well as assemblies and components that support the Next-Generation 737, 747-8, 767, and 777. The contract value is approximately CAD $80 million over five years, commencing in 2013.
These parts and assemblies will be manufactured and delivered from Avcorp's Delta, B.C. Canada facility.
"Boeing has been a valued Avcorp customer for 20 years," said Mark Van Rooij. "However, this extension represents a tremendous opportunity for even greater collaboration between our companies and fits perfectly with our continuous improvement and strategic growth plans". "By supporting Boeing's unprecedented Next-Generation 737 production rate increases, Avcorp looks forward to strengthening our relationship with Boeing and participation in the success of one of the world's leading commercial airplane manufacturers by creating value in everything we do".
This Boeing contract extension provides a solid base of work for Avcorp over the contract term supporting a significant number of jobs at the plant in British Columbia.
In February, 2012 Avcorp received a 2011 Silver Boeing Performance Excellence Award recognizing suppliers who have achieved superior performance.
About the Products:
Avcorp delivers large assemblies direct to the 737 assembly line, as well as bonded structures and sheet metal assemblies that support current and future production rates of Boeing's 737, 747, 767, and 777 commercial aircraft.
Avcorp designs and builds major airframe structures for some of the world's leading aircraft companies, including BAE Systems, Boeing, Bombardier, and Cessna. With more than 50 years of experience, over 500 skilled employees and 354,000 square feet of facilities, Avcorp offers integrated composite and metallic aircraft structures to aircraft manufacturers, a distinct advantage in the pursuit of contracts for new aircraft designs, which require lower-cost, light weight, strong, reliable structures. Avcorp is a Canadian public company traded on the Toronto Stock Exchange (TSX: AVP).
MARK VAN ROOIJ
PRESIDENT and CHIEF EXECUTIVE OFFICER
This release should be read in conjunction with the Company's unaudited financial statements contained in the Company's Annual Report and with the quarterly financial statements and accompanying notes filed with Sedar (www.sedar.com).
Certain statements in this release and other oral and written statements made by the Company from time to time are forward-looking statements, including those that discuss strategies, goals, outlook or other non-historical matters; or projected revenues, income, returns or other financial measures. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those contained in the statements, including the following: (a) the extent to which the Company is able to achieve savings from its restructuring plans; (b) uncertainty in estimating the amount and timing of restructuring charges and related costs; (c) changes in worldwide economic and political conditions that impact interest and foreign exchange rates; (d) the occurrence of work stoppages and strikes at key facilities of the Company or the Company's customers or suppliers; (e) government funding and program approvals affecting products being developed or sold under government programs; (f) cost and delivery performance under various program and development contracts; (g) the adequacy of cost estimates for various customer care programs including servicing warranties; (h) the ability to control costs and successful implementation of various cost reduction programs; (i) the timing of certifications of new aircraft products; (j) the occurrence of further downturns in customer markets to which the Company products are sold or supplied or where the Company offers financing; (k) changes in aircraft delivery schedules or cancellation of orders; (l) the Company's ability to offset, through cost reductions, raw material price increases and pricing pressure brought by original equipment manufacturer customers; (m) the availability and cost of insurance; (n) the Company's ability to maintain portfolio credit quality; (o) the Company's access to debt financing at competitive rates; and (p) uncertainty in estimating contingent liabilities and establishing reserves tailored to address such contingencies.
SOURCE Avcorp Industries Inc.