ESCO Announces $35 Million T-700 Contract Award at VACCO
ST. LOUIS, Aug. 5 /PRNewswire-FirstCall/ -- ESCO Technologies Inc. (NYSE: ESE) today announced that VACCO Industries has been awarded a five-year contract worth up to $35 million to supply T-700 anti-icing valves for use on U.S. Army UH-60 series Black Hawk helicopters.
The initial purchase order for $2.5 million was received on this contract with product deliveries expected to begin in fiscal 2011. Based on the Army's historical usage patterns for this product, and previous T-700 contract quantities delivered, VACCO expects to receive additional purchase orders for the full quantity of products over the term of the contract.
VACCO's anti-icing valves are designed to provide hot air flow for engine anti-ice protection during flight, and to bleed air from the engine during start-up. The T-700-powered Black Hawk helicopters are used extensively by the U.S. Army domestically and in overseas operations. The T-700 engines are also used on the U.S. Navy's Naval Hawk and the U.S. Coast Guard's Seahawk variations of the Black Hawk, as well as the Army's AH-64 Apache helicopters.
Antonio Gonzalez, President, VACCO Industries, commented, "We are very pleased to be selected once again to supply these critical valves to our nation's armed services. Our success in providing large quantities of this high-quality valve over the years put us in a great position to win this competitively bid contract. The Army's actions further validate our many years of successful engineering development, production of superior quality hardware, and dedicated service to our long-term customers. In addition, this sizable project is anticipated to add strength and long-term stability to our operating forecast."
Statements in this press release regarding the timing, likelihood, value, and impact to VACCO's operating forecast resulting from the expected orders from the U.S. Army and any other statements which are not strictly historical are "forward-looking" statements within the meaning of the safe harbor provisions of the federal security laws. Investors are cautioned that such statements are only predictions and speak only as of the date of this release, and the Company undertakes no duty to update. The Company's actual results in the future may differ materially from those projected in the forward-looking statements due to risks and uncertainties that exist in the Company's operations and business environment including, but not limited to: the timing and content of future purchases of the Company's products by the U.S. Army; the Company's successful performance of requirements for the U.S. Army; changes in the customer's demands or financial constraints impacting the U.S. Army; technical difficulties; shortages of components or raw materials required to produce the Company's products; delivery delays or defaults impacting the Company's contracts; and termination for convenience of the Company's contracts.
ESCO, headquartered in St. Louis, is a proven supplier of special purpose utility solutions for electric, gas and water utilities, including hardware and software to support advanced metering applications and fully automated intelligent instrumentation. In addition, the Company provides engineered filtration products to the aviation, space and process markets worldwide and is the industry leader in RF shielding and EMC test products. Further information regarding ESCO and its subsidiaries is available on the Company's web site at www.escotechnologies.com.