CPI Aerostructures Receives Orders Totaling $1.4M From Turkish Aerospace Industries

Rhea-AI Summary

CPI Aerostructures (CVU) announced receipt of multiple purchase orders worth approximately $1.4 million from Turkish Aerospace Industries (TAI) for the T70 Turkish Utility Helicopter Program. These orders add to a multi-year contract established in September 2019, totaling $2.1 million to date against a ceiling of $4.6 million. Deliveries for the recent orders are expected to commence in 2021. CEO Douglas J. McCrosson highlighted the orders as a recognition of the company’s expertise in BLACK HAWK programs, reinforcing its position in the aerospace sector.

Positive

• Received $1.4 million in new purchase orders from Turkish Aerospace Industries.
• Total contract value with TAI now $2.1 million against a ceiling of $4.6 million.
• Established a long-term partnership with TAI for the T70 helicopter program.

Negative

• None.

EDGEWOOD, N.Y. , Oct. 21, 2020 (GLOBE NEWSWIRE) -- CPI Aerostructures, Inc. (“CPI Aero®”) (the “Company”) (NYSE American: CVU) announced today that it has received multiple purchase orders with a total value of approximately $1.4 million from Turkish Aerospace Industries (TAI), the prime contractor for the T70 Turkish Utility Helicopter Program (TUHP). In September 2019, the Company announced receiving a multi-year contract from TAI to manufacture window assemblies on up to 104 T70 aircraft over an estimated 5-year period. The combined orders received to date under this contract total $2.1 million against a ceiling price of $4.6M. The Company expects to begin deliveries on these most recent orders in 2021.

TUHP is an industrial partnership launched in 2016, comprised of Sikorsky Aircraft, a Lockheed Martin Company, the Government of the Republic of Turkey, and members of the Turkish aerospace industry. TUHP produces the T70 utility helicopter based on Sikorsky's successful multi-role BLACK HAWK® utility aircraft. CPI Aero has been producing similar BLACK HAWK helicopter window assemblies since 2010.

Douglas J. McCrosson, president and chief executive officer of CPI Aero commented, “Receiving additional orders from Turkish Aerospace Industries is a testament to the expertise and craftsmanship of our workforce, honed over a decade of working on the Sikorsky BLACK HAWK program. We are proud of the quality products we produce for TAI.”

About Turkish Aerospace Industries

Turkish Aerospace, ranking among the top hundred global players in aerospace and defense industry, is the center of technology in design, development, modernization, manufacturing and life cycle support of integrated aerospace systems, from fixed and rotary wing platforms to UAV systems and space systems and is one of the largest and most important defense and aerospace companies in Turkey.

About CPI Aero

CPI Aero is a U.S. manufacturer of structural assemblies for fixed wing aircraft, helicopters and airborne Intelligence Surveillance and Reconnaissance and Electronic Warfare pod systems, primarily for 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, 2019 and Form 10-Q for the three-month period ended March 31, 2020.

CPI Aero® is a registered trademark of CPI Aerostructures, Inc. For more information, visit www.cpiaero.com, and follow us on Twitter @CPIAERO.

Contact:
Investor Relations Counsel:
LHA Investor Relations
Jody Burfening
(212) 838-3777
cpiaero@lhai.com
www.lhai.com

FAQ

What is the total value of the new orders received by CPI Aero from TAI?

CPI Aero received multiple purchase orders worth approximately $1.4 million from Turkish Aerospace Industries.

How much has CPI Aero contracted with TAI for the T70 Helicopter Program?

The total contract value with TAI stands at $2.1 million against a ceiling price of $4.6 million.

When does CPI Aero expect to begin deliveries for the new orders?

CPI Aero expects to start deliveries on the new orders in 2021.

What program is the purchase order related to?

The purchase order is related to the T70 Turkish Utility Helicopter Program.