EDGEWOOD, N.Y., June 16, 2020 (GLOBE NEWSWIRE) -- CPI Aerostructures, Inc. (“CPI Aero®”) (NYSE American: CVU) announced today announced that it has received multiple purchase orders valued in aggregate at approximately $43.1 million from Northrop Grumman Corp. (NYSE: NOC) for outer wing panel kits used in the manufacture of complete wings for the E-2D Advanced Hawkeye. In February 2019, CPI Aero received an $8.1 million order for the first year of a multi-year contract with an expected value of up to $47.5 million. With the addition of these new orders the total value of firm orders under the multi-year contract to CPI Aero is approximately $51 million as the total expected quantity of wing kits has increased.
"We have enjoyed an exceptional relationship with Northrop Grumman since 2008 as part of 'Team Hawkeye'. Having provided the structural kits used to manufacture the wings on every E-2D Advanced Hawkeye in the U.S. Navy's fleet over that time, we are very pleased to continue for the remainder of the current program of record," stated Douglas McCrosson, chief executive officer of CPI Aero. "Work under these new orders has already commenced with the vast majority of revenue expected to be recognized in 2020 and 2021 with deliveries scheduled through 2023."
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, June 30, 2019, and September 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.
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