Ducommun Incorporated (NYSE:DCO) today announced that its Ducommun AeroStructures, Inc. (DAS) subsidiary has been awarded follow-on contracts from The Boeing Company in Mesa, Arizona which are valued at approximately $49 million for AH-64 Apache helicopter main rotor blades for use as both original equipment and replacement blades. The contract is additive to current production and extends deliveries into 2007.
Boeing produces the next-generation AH-64D Apache Longbow helicopter in Mesa for the U.S. Army and a growing number of international defense forces. The manufacture of the rotor blades will be at the Ducommun AeroStructures, Monrovia facility, which has built every Apache rotor blade since the inception of the program. The new contract will continue to provide stability to the work force at this facility.
Joseph C. Berenato, chairman and chief executive officer of Ducommun, stated, “We are pleased by the award of this follow-on contract which affirms our long-term commitment to producing complex assemblies as part of our strategy to drive growth through increasing our proportion of value added work. Also, our demonstrated capabilities in main rotor blade production have enabled us to win new commercial helicopter blade work from other customers, broadening our presence in this important market. Finally, we are very proud to be a part of the Boeing Team supporting the Apache helicopter program at this time in our nation’s history.”
Ducommun AeroStructures manufactures large, complex structural components and assemblies in aluminum, specialty alloys such as titanium, metal bond and composites for a wide variety of military and commercial aerospace applications.
Founded in 1849, Ducommun Incorporated manufactures components and assemblies for the aerospace industry.
The statements made in this press release include forward-looking statements that involve risks and uncertainties. The Company’s future financial results could differ materially from those anticipated due to the Company’s dependence on conditions in the airline industry, the level of new commercial aircraft orders, production rates for Boeing commercial aircraft, the C-17 and Apache helicopter rotor blade programs, the level of defense spending, competitive pricing pressures, manufacturing inefficiencies, start-up costs and possible overruns on new contracts, technology and product development risks and uncertainties, product performance, risks associated with acquisitions and dispositions of businesses by the Company, increasing consolidation of customers and suppliers in the aerospace industry, possible goodwill impairment, availability of raw materials and components from suppliers, and other factors beyond the Company’s control. See the Company’s Form 10-K and Form 10-Q for the quarter ended July 2, 2005 for the year ended December 31, 2004 for a more detailed discussion of these and other risk factors and contingencies.
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