Kaman Corporation (NYSE:KAMN) announced today that its Aerospace segment has entered into a new contract with the U.S. Air Force (USAF) for the sale of Joint Programmable Fuzes (JPF).
The new base contract, also referred to as Option 10, has an estimated value of $70 million. The agreement also contains two follow-on options (options 11 and 12) that, if exercised, would raise the total value and extend the contract through mid-2017. Deliveries under Option 10 are anticipated to begin in the second half of 2014.
"This contract award from the Air Force signifies the critical capability that the JPF provides to our men and woman in uniform. The JPF is the most functional and reliable bomb fuze in the U.S. military's arsenal. We are pleased to solidify the future of our largest single program," stated Neal J. Keating, Kaman Corporation's Chairman, President and CEO.
Kaman has been the sole provider of the JPF to the USAF since 2002. In addition to the USAF, Kaman provides the JPF to twenty-three other nations. The JPF allows the settings of a weapon to be programmed on wing in flight and is the current bomb fuze of choice of the USAF. The JPF is used with a number of weapons including general purpose bombs, and guided bombs that use JDAM or Paveway kits, on U.S. aircraft such as F-15, F-16, F-22, A-10, B-1, B-2, B-52 and the MQ-9 UAV as well as on international aircraft such as Mirage 3 and Gripen. Kaman produces the JPF at facilities in Orlando, Florida and Middletown, Connecticut.Risks Associated with Forward-Looking Statements This release includes "forward looking statements" relating to the estimated value of the JPF contract discussed above. These statements are based on assumptions currently believed to be valid, but they involve risks and uncertainties that could cause our actual results to differ from those expressed in the forward looking statements. Important uncertainties that could cause our actual results to differ from those expressed in the forward looking statements are identified in our reports filed with the SEC, including our Quarterly Reports on Form 10-Q, our Annual Reports on Form 10-K, and our Current Reports on Form 8-K. The forward looking statements included in this press release are made only as of the date of this release, and Kaman does not undertake any obligation to update the forward looking statements to reflect subsequent events or circumstances.