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.
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