Moog And COMAC Sign Letter Of Intent For C919 High Lift System
EAST AURORA, N.Y., April 15 /PRNewswire-FirstCall/ -- Moog Inc. (NYSE: MOG.A and MOG.B) and the Commercial Aircraft Corporation of China (COMAC) signed a letter of intent today for the development of the High Lift System for the C919, COMAC's new narrow body commercial transport.
The letter of intent is a framework agreement to commence the joint development phase of the C919 High Lift System in parallel with definitizing contract terms for the production program. The High Lift System includes all flap and slat actuation, pilot interfaces, electronic controls, power drive units, wing tip brakes, gearboxes and miscellaneous components.
COMAC has forecasted a global market for more than 2,000 C919 aircraft over the 20 years following entry into service, planned for 2016.
Warren Johnson, President of Moog's Aircraft Group, stated, " China is the world's fastest growing aviation market and the C919 represents a key opportunity for Moog to participate in this growth. We are very proud of our selection by COMAC and of our position as a key system supplier on this prestigious program."Moog has separately entered into a cooperation agreement with Qing'an Group, an industrial partner and subsidiary of the Aviation Industries of China, who will participate with Moog on this project. Moog Inc. is a worldwide designer, manufacturer, and integrator of precision control components and systems. Moog's high-performance systems control military and commercial aircraft, satellites and space vehicles, launch vehicles, missiles, automated industrial machinery, wind energy, marine and medical equipment. Additional information about the company can be found at www.moog.com. Cautionary Statement Information included or incorporated by reference herein that does not consist of historical facts, including statements accompanied by or containing words such as "may," "will," "should," "believes," "expects," "expected," "intends," "plans," "projects," "approximate," "estimates," "predicts," "potential," "outlook," "forecast," "anticipates," "presume" and "assume," are forward-looking statements. Such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and are subject to several factors, risks and uncertainties, the impact or occurrence of which could cause actual results to differ materially from the results described in the forward-looking statements. These important factors, risks and uncertainties include:
i. fluctuations in general business cycles for commercial aircraft, military aircraft, space and defense products, industrial capital goods and medical devices; ii. our dependence on government contracts that may not be fully funded or may be terminated; iii. our dependence on certain major customers, such as The Boeing Company and Lockheed Martin, for a significant percentage of our sales; iv. delays by our customers in the timing of introducing new products, which may affect our earnings and cash flow; v. the possibility that the demand for our products may be reduced if we are unable to adapt to technological change; vi. intense competition, which may require us to lower prices or offer more favorable terms of sale; vii. our indebtedness, which could limit our operational and financial flexibility; viii. the possibility that new product and research and development efforts may not be successful, which could reduce our sales and profits; ix. increased cash funding requirements for pension plans, which could occur in future years based on assumptions used for our defined benefit pension plans, including returns on plan assets and discount rates; x. a write-off of all or part of our goodwill or intangible assets, which could adversely affect our operating results and net worth and cause us to violate covenants in our bank agreements; xi. the potential for substantial fines and penalties or suspension or debarment from future contracts in the event we do not comply with regulations relating to defense industry contracting; xii. the potential for cost overruns on development jobs and fixed- price contracts and the risk that actual results may differ from estimates used in contract accounting; xiii. the possibility that our subcontractors may fail to perform their contractual obligations, which may adversely affect our contract performance and our ability to obtain future business; xiv. our ability to successfully identify and consummate acquisitions, and integrate the acquired businesses and the risks associated with acquisitions, including that the acquired businesses do not perform in accordance with our expectations, and that we assume unknown liabilities in connection with acquired businesses for which we are not indemnified; xv. our dependence on our management team and key personnel; xvi. the possibility of a catastrophic loss of one or more of our manufacturing facilities; xvii. the possibility that future terror attacks, war or other civil disturbances could negatively impact our business; xviii. that our operations in foreign countries could expose us to political risks and adverse changes in local, legal, tax and regulatory schemes; xix. the possibility that government regulation could limit our ability to sell our products outside the United States; xx. product quality or patient safety issues with respect to our medical devices business that could lead to product recalls, withdrawal from certain markets, delays in the introduction of new products, sanctions, litigation, declining sales or actions of regulatory bodies and government authorities; xxi. the impact of product liability claims related to our products used in applications where failure can result in significant property damage, injury or death and in damage to our reputation; xxii. changes in medical reimbursement rates of insurers to medical service providers, which could affect sales of our medical products; xxiii. the possibility that litigation results may be unfavorable to us; xxiv. our ability to adequately enforce our intellectual property rights and the possibility that third parties will assert intellectual property rights that prevent or restrict our ability to manufacture, sell, distribute or use our products or technology; xxv. foreign currency fluctuations in those countries in which we do business and other risks associated with international operations; xxvi. the cost of compliance with environmental laws; xxvii. the risk of losses resulting from maintaining significant amounts of cash and cash equivalents at financial institutions that are in excess of amounts insured by governments; xxviii. the inability to modify, to refinance or to utilize amounts presently available to us under our credit facilities given uncertainties in the credit markets; xxix. our ability to meet the restrictive covenants under our credit facilities since a breach of any of these covenants could result in a default under our credit agreements; and xxx. our customers' inability to continue operations or to pay us due to adverse economic conditions or their inability to access available credit.SOURCE Moog Inc.
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