CPI Aerostructures Receives Fiscal 2004 T-38 Contract Award Adding $4.9 Million to Year-to-Date Orders.
EDGEWOOD, N.Y.--(BUSINESS WIRE)--March 8, 2004
CPI Aerostructures, Inc. (AMEX: CVU) today reported that the U.S. Air Force has released its 2004 contract award to CPI for the T-38 Talon trainer aircraft. The 2004 contract, valued at approximately $4.9 million, is for 36 ship-sets of structural inlets as part of the Propulsion Modernization Program on this aircraft.
"Since 2001 when we were selected for the 10-year $61 million contract for the T-38 modernization program, orders under this award have totaled $19.4 million; which means that over the next six years, we would expect an additional $41.6 million in similar orders," stated CPI's President & CEO, Edward J. Fred.
Mr. Fred continued, "At this time last year, we had received approximately $10.5 million in awards versus $9.1 million year-to-date in 2004. This is simply the result of a delay in the government contract award cycle and does not indicate an issue with our ability to win business. In fact, CPI's average win rate remains strong at 14%, which is ahead of the 11% hit rate logged last year at this time, and is also well above the industry average of 5%. With this follow-on T-38 order, the Company has approximately $26 million of funded backlog."
Founded in 1980, CPI Aerostructures is engaged in the contract production of structural aircraft parts principally for the U.S. Air Force and other branches of the armed forces. In conjunction with its assembly operations, CPI provides engineering, technical and program management services. Among the key programs that CPI supplies are the C-5A Galaxy cargo jet, the T-38 Talon jet trainer, the A-10 Thunderbolt attack jet and the E-3 Sentry AWACS jet.
The above statements include forward looking statements that involve risks and uncertainties, which are described from time to time in CPI's SEC reports, including CPI's Form 10-KSB for the year ended December 31, 2002 and Form 10-QSB for the quarter ended September 30, 2003.