- Funded orders now total approximately $20 million of potential $48 million contract -
EDGEWOOD, N.Y., May 28, 2020 (GLOBE NEWSWIRE) -- CPI Aerostructures, Inc. (“CPI Aero®”) (NYSE American: CVU) announced today the receipt of purchase orders totaling approximately $14 million from Boeing (BA) for structural assemblies for the A-10 Thunderbolt II under a previously announced Indefinite Delivery/Indefinite Quantity (IDIQ) contract with a maximum ceiling value of $48 million. Under the terms of the IDIQ, CPI Aero will manufacture major structural subassemblies of the A-10 aircraft’s wing. Including these new orders, CPI Aero has now received approximately $20 million in funding from Boeing for the production of A-10 re-wing structural assemblies and associated program start-up costs. First delivery is expected to be in late 2020 and the period of performance under current funding is expected to extend into 2022.
On August 21, 2019, Boeing announced an award from the United States Air Force (USAF) with a maximum contract value of $999 million to manage the production of up to 112 new wing sets and spares kits for A-10 aircraft.
Douglas McCrosson, president and CEO of CPI Aero, stated, “These latest purchase orders represent a substantial commitment by the U.S. Air Force and Boeing to keeping this vital weapon system in the fight for years to come. New orders, such as these for the A-10, add to our already impressive funded backlog for products that are at the core of our country’s national security mission and comprise both older platforms, like the A-10, and current generation programs.”
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.
Investor Relations Contacts:
LHA Investor Relations
Sanjay M. Hurry/Jody Burfening