ESCO Announces Aerospace Contract Wins
ST. LOUIS, February 17, 2014 - ESCO Technologies Inc. (NYSE: ESE) today announced that its commercial aerospace subsidiaries, PTI Technologies Inc. (PTI) and Crissair Inc. (Crissair) have recently been awarded four new contracts to provide hydraulic system components and valve assemblies for multiple aerospace customers supporting new aircraft platforms.
The awards include new contracts with customers including: a Chinese commercial aircraft manufacturer; an international provider of next generation commercial regional jets; a supplier introducing a new series of long-range business jets; and a provider of large-cabin business jets.
Under these contracts PTI and Crissair will design, develop, manufacture, supply and support various hydraulic system assemblies, valves, components and filter elements used on these aircraft. Production units will be added to the contracts by the issuance of future purchase orders.
Initial design and development work is underway and hardware deliveries are expected to begin within the next 24 months. Once these new aircraft are in full production, OEM revenues are expected to be approximately $7 to $9 million annually, with nearly $200 million of total potential revenues over the life of the programs.
Sam Chapetta, Group Vice President commented, "Our best-in-class product development and engineering excellence, as well as our focus on customer service played a significant role in winning this new business. We are pleased to be part of these exciting new programs. I am enthusiastic about the breadth of our new product offerings and convinced these recent wins will further expand our leading edge aerospace technology into the world marketplace. We remain committed to exceeding the requirements of our customers by providing state-of-the-art solutions today and well into the future."
Vic Richey, Chairman and Chief Executive Officer, commented, "Securing this new business across our aerospace platform further validates our confidence in our ability to grow this segment well into the future. I remain convinced that our strategy of focusing on our core businesses, which are less volatile and provide meaningful and predictable growth, is the best way to increase shareholder value."
Forward-Looking Statements
Statements in this press release regarding the amounts and timing of revenues from these contracts, the date of entry into service and the success of the new aircraft platforms are "forward-looking" statements within the meaning of the safe harbor provisions of the federal securities laws. Investors are cautioned that such statements are only predictions and speak only as of the date of this release, and the Company undertakes no duty to update. The Company's actual results in the future may differ materially from those projected in the forward-looking statements due to risks and uncertainties that exist in the Company's operations and business environment including without limitation the timing and content of purchase orders, changes in customer demands, technical difficulties, delivery delays, defaults by customers and termination for convenience of customer contracts.
ESCO, headquartered in St. Louis, is a proven supplier of special purpose utility solutions for electric, gas, and water utilities, including hardware and software to support advanced metering applications and fully automated intelligent instrumentation. In addition, the Company provides engineered filtration products to the aviation, space, and process markets worldwide and is the industry leader in RF shielding and EMC test products. Further information regarding ESCO and its subsidiaries is available on the Company's website at www.escotechnologies.com.
SOURCE ESCO Technologies Inc.
Kate Lowrey, Director of Investor Relations, (314) 213-7277
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