This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

EDAC Technologies Announces Three Long-Term Agreements Totaling $58 Million

















FARMINGTON, Conn., March 13, 2012 /PRNewswire/ -- EDAC Technologies Corporation (NASDAQ: EDAC), a diversified designer, manufacturer and servicer of precision components for aerospace and industrial applications, today announced three long-term agreements (LTAs) representing total projected sales of approximately $58 million. The addition of these agreements has increased EDAC's backlog to a record of approximately $310 million at March 12, 2012, up from $252 million at the end of fiscal 2011.    

EDAC entered into a five-year agreement with Volvo Aero to produce rotating disks, compressor hubs and other components for an engine program used in Boeing aerial refueling tanker aircraft and wide body commercial aircraft, as well as another engine used in European fighter jets.  Based on projected volumes, the agreement is valued at approximately $29 million through 2017. 

In addition, EDAC has entered into a four-year agreement with a division of GE Aviation to provide booster cases for two engines used on aircraft such as the Boeing 747 and Airbus A330.  Based on projected volumes, this agreement is valued at approximately $13 million through 2015.

The Company also said that Rolls-Royce Canada has renewed for an additional five years an agreement under which EDAC is producing rotating components for ground-based turbines used in power generation.  Based on projected volumes, the extension of the agreement is valued at approximately $16 million through 2016.  

EDAC expects to begin recognizing additional revenue from the ground-based turbine contract in 2012, while production ramp-up for the other two contracts is expected later this year with shipments to begin in 2013.  The Company expects to deliver approximately $260 million to $280 million of its current $310 million backlog within the next three to five years.

"With these LTAs, our backlog has reached a milestone, breaking through the $300 million level for the first time.  Winning these contracts reflects our focus in recent years on expanding our precision manufacturing platform, developing the capacity to produce a wider range of parts, and diversifying our relationships with Prime and Tier 1 customers.  We have demonstrated that EDAC is well-positioned to benefit from the strong demand in the aerospace sector, while also applying our skills to opportunities in industrial markets such as power generation.  I especially want to recognize our EDAC AERO team members, who have earned the confidence of our customers through their dedication to quality and service," said Dominick A. Pagano, President and Chief Executive Officer of EDAC Technologies Corporation.

About EDAC Technologies Corporation

EDAC Technologies Corporation is a diversified manufacturing company serving the aerospace and industrial markets.  In the aerospace sector, EDAC offers design and manufacturing services for commercial and military aircraft, in such areas as jet engine parts, special tooling, equipment, gauges and components used in the manufacture, assembly and inspection of jet engines.  Industrial applications include high-precision fixtures, gauges, dies and molds, as well as the design, manufacture and repair of precision grinders and precision spindles, which are an integral part of machine tools found in virtually every manufacturing environment. EDAC's core competencies include extensive in-house design and engineering capabilities, and facilities equipped with the latest enabling machine tools and manufacturing technologies.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs