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(NYSE:KAMN) Kaman Corporation announced today that its Aerospace segment has entered into a Memorandum of Agreement (MOA) with Boeing Canada Winnipeg for the manufacture and assembly of two major sections of the 747-8 Wing-to-Body Fairing.
Kaman will manufacture most components at its facilities in Connecticut, Florida, Kansas and Vermont with final assembly to be completed at the company's Jacksonville, Florida facility and delivered directly to Boeing's wide-body assembly line in Everett, Washington. The MOA has a potential value, depending on production rates, in excess of $60 million.
"This agreement with Boeing exemplifies our 'One Kaman' philosophy and the efforts of our team across the Aerospace segment. Kaman has a broad array of capabilities to offer Aerospace customers. We are committed to bringing forth those capabilities on a consolidated and cohesive basis to provide our customers with a one-stop shop solution," commented Greg Steiner, President Kaman Aerospace Group.
"We are very pleased with the confidence Boeing is expressing in our capabilities by awarding us this work on the 747-8 wing-to-body fairing. We have a long and mutually beneficial relationship with Boeing, having supplied various structures to them for more than three decades. We believe this product is the beginning of an enhanced relationship that could lead to further off-load opportunities," stated Neal J. Keating, Kaman Corporation's Chairman, President and CEO.
The 747-8 Wing-to-Body Fairing is currently manufactured by Boeing at its Winnipeg facility. Kaman and Boeing expect to execute a contract in the next several weeks. Transitional efforts are already underway on this program and it is expected that Kaman will begin delivering assemblies during the first half of 2014.
Risks Associated with Forward-Looking Statements
This release includes "forward looking statements" relating to the estimated value of the 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.