Kaman Awarded $39.8M Contract to Commence Implementation Phase of Peru SH-2G Super Seasprite Program
FARNBOROUGH, United Kingdom--(BUSINESS WIRE)--Kaman Aerosystems (Kaman) announced today that its Air Vehicles and MRO (AVMRO) division has successfully secured a contract for $39.8 million (USD) with General Dynamics Mission Systems—Canada to commence work on the implementation phase of the previously announced Peruvian Navy's SH-2G Super Seasprite aircraft program. The total expected value to Kaman for the combined program, including this contract and previously issued contracts, now totals $50.5 million (USD), total sales of $10.6 million (USD) had already been recognized as revenue through April 1, 2016, and the balance is expected to be recognized through the remainder of the program.
Drake Klotzman, General Manager AVMRO said, "We are very pleased to be working with General Dynamics Mission Systems—Canada to provide advanced maritime, search and rescue, and surveillance capabilities to the Peruvian Navy. The SH-2G platform is proven to meet the demanding maritime requirements of today's rapidly changing naval environment and we are confident that the addition of the SH-2G aircraft to its fleet will enhance the Peruvian Navy's defense capabilities. We are looking forward to a long-lasting relationship with Peru and General Dynamics Mission Systems—Canada to support and service these aircraft."
"We are pleased to be teamed with Kaman, the OEM of the highly capable SH-2G on this program. The SH-2G is well suited for the needs of the Peruvian Navy and we look forward to providing remanufactured and upgraded aircraft for the nation's long-term defense requirements," said Brian Fava, Vice President Air and Naval Systems, General Dynamics Mission Systems—Canada.
The program began with a preliminary design effort in 2014. During the implementation phase, which is expected to last through 2018, four aircraft will undergo extensive remanufacture and upgrade by Kaman at its Bloomfield, Connecticut facility. Kaman's Jacksonville, Florida operation will contribute manufacturing effort and its Everett, Washington engineering organization will provide design support to the program.
General Dynamics Mission Systems—Canada is under contract to lead this program and provide the integrated mission system for the aircraft. As part of the program, a total of five SH-2G aircraft are being transferred to the Peruvian Ministry of National Defense.
The SH-2G Super Seasprite is an advanced maritime weapon system and proven day/night/all-weather multi-mission helicopter. Originally designed to meet the exacting requirements of the U.S. Navy, the SH-2G Super Seasprite has the highest power-to-weight ratio of any maritime helicopter, assuring a safe return-to-ship capability even in single-engine flight conditions. Its robust design, outstanding stability, and excellent reliability have been proven through more than 1.5 million flight hours. The SH-2G is a multi-mission maritime weapon system designed to fulfill anti-submarine warfare (ASW), anti-surface warfare (ASuW), over the horizon targeting, surveillance, troop transport, vertical replenishment, search and rescue, and utility missions. It is the largest, most powerful small ship helicopter in use today and is recognized for its mission effectiveness, support, and unmatched performance. The SH-2G Super Seasprite is currently operated by the Royal New Zealand Navy, the Egyptian Air Force and the Polish Navy.
Risks Associated with Forward-Looking Statements
This release includes "forward looking statements" relating to the estimated value of the contract and program discussed above. These statements are based on assumptions currently believed to be valid, but they involve risks and uncertainties that could cause actual results to differ from those expressed in the forward looking statements. Important uncertainties that could cause actual results to differ from those expressed in the forward looking statements are identified in periodic reports filed by Kaman Corporation with the SEC, including its Quarterly Reports on Form 10-Q, its Annual Reports on Form 10-K, and its 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 Corporation does not undertake any obligation to update the forward looking statements to reflect subsequent events or circumstances.
Kaman Aerosystems is a division of the aerospace segment of Kaman Corporation (NYSE:KAMN), which was founded in 1945 by aviation pioneer Charles H. Kaman. Headquartered in Bloomfield, Connecticut, Kaman Corporation conducts business in the aerospace and distribution markets. The company produces and/or markets widely used proprietary aircraft bearings and components; super precision, miniature ball bearings; complex metallic and composite aerostructures for commercial, military and general aviation fixed and rotary wing aircraft; aerostructure engineering design analysis and FAA certification services; safe and arm solutions for missile and bomb systems for missile and bomb systems for the U.S. and allied militaries; subcontract helicopter work; production of the K-MAX medium-to-heavy lift helicopter and support for the company's SH-2G Super Seasprite maritime aircraft. More information is available at www.kaman.com.
Kaman Corporation, Bloomfield, CT
Eric Remington, 860-243-6334
VP, Investor Relations