CPI Aero Awarded Seven Year Contract by Cessna for the New Citation X Wing
EDGEWOOD, N.Y. -- November 07, 2012
CPI Aerostructures, Inc. (CPI Aero^®) (NYSE MKT: CVU) announced today that it
has been awarded a contract by Cessna Aircraft Company (“Cessna”), a
subsidiary of Textron Inc. (NYSE: TXT), to supply structural assemblies,
predominately wing spars, for Cessna’s flagship aircraft, the newly-relaunched
Cessna Citation X. CPI Aero estimates the value of the contract, over a seven
year period, to be approximately $41 million. The intial delivery order is for
approximately $5 million.
CPI Aero will be manufacturing eleven different structural assemblies,
including nine spar assemblies. A wing spar is the primary structural
component running the length of the wing. The longest spar assembly for the
new Citation X is more than 29 feet long. CPI Aero will begin work immediately
and will commence deliveries in the first half of 2013.
Originally introduced into service in 1996 as the Citation X, the new Citation
X was first announced at the National Business Aviation Association convention
in 2010. The X prototype made its first flight in January of this year.
Federal Aviation Administration type certification is anticipated in mid-2013
with first aircraft deliveries to customers planned for the second half of
2013. The new Citation X features the same supercritical wing as the Citation
X, which together with its high bypass ratio Rolls Royce engines establishes
the new Citation X as the fastest operational civilian jet in the world.
Edward J. Fred, CPI Aero’s CEO & President stated “We are very proud that
Cessna, the world’s leading manufacturer of General Aviation aircraft, has
selected CPI Aero to provide critical assemblies for its new Citation X
program. We have been a supplier to Textron Inc. through its Bell Helicopter
subsidiary; however, this is our first contract from Cessna and we are excited
to build upon our successes at Bell. Cessna becomes the third new commercial
aerospace customer announced in the past eighteen months and justifies our
strategy to target opportunities on long-lived civilian aircraft programs.”
Cessna is the world's leading general aviation company. Since its inception in
1927, Cessna has designed, produced and delivered more than 193,500 airplanes
around the globe. This includes more than 6,300 Citation business jets, making
it the largest fleet of business jets in the world. Today, Cessna has two
principal lines of business: aircraft sales and aftermarket services. Aircraft
sales include Citation business jets, Caravan single-engine utility
turboprops, single-engine piston aircraft and lift solutions by CitationAir.
Aftermarket services include parts, maintenance, inspection and repair
services. In 2011, Cessna delivered 689 aircraft, including 183 Citation
business jets, and reported revenues of $2.99 billion.
Textron Inc. is a multi-industry company that leverages its global network of
aircraft, defense, industrial and finance businesses to provide customers with
innovative solutions and services. Textron is known around the world for its
powerful brands such as Bell Helicopter, Cessna Aircraft Company, Jacobsen,
Kautex, Lycoming, E-Z-GO, Greenlee, and Textron Systems.
About CPI Aero
CPI Aero is engaged in the contract production of structural aircraft parts
for leading prime defense contractors, the U.S. Air Force, and other branches
of the armed forces. CPI Aero also acts as a subcontractor to prime aircraft
manufacturers in the production of commercial aircraft parts. In conjunction
with its assembly operations, CPI Aero provides engineering, technical and
program management services. Among the key programs that CPI Aero supplies are
the E-2D Advanced Hawkeye surveillance aircraft, the A-10 Thunderbolt attack
jet, the Gulfstream G650, the UH-60 Black Hawk helicopter, the S-92®
helicopter, the MH-60S mine countermeasure helicopter, AH-1Z Viper attack
helicopter, the HondaJet-Advanced Light Jet, the MH-53 and CH-53 variant
helicopters, the C-5A Galaxy cargo jet, the E-3 Sentry AWACS jet and the
Embraer Phenom 300 light business jet. CPI Aero is included in the Russell
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, 2011
and CPI Aero’s Form 10-Q’s for the quarters ended March 31 and June 30, 2012.
CPI Aero is a registered trademark of CPI Aerostructures, Inc.
Vincent Palazzolo, 631/586-5200
Chief Financial Officer
Investor Relations Counsel
The Equity Group Inc.
Lena Cati, 212/836-9611
Linda Latman, 212/836-9609
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