SALEM, N.H.--(BUSINESS WIRE)--Standex International Corporation (NYSE:SXI) today announced that Spincraft, the Company’s engineered products metal fabrication business unit, has received a multiyear contract from United Launch Alliance (ULA), a joint venture of Boeing and Lockheed Martin, to produce one-piece fuel and oxygen tank domes for ULA’s Atlas V and Delta IV launch vehicle programs. The contract runs through 2016 and is valued at nearly $36 million. It carries an additional two-year option valued at $15 million.
Under the terms of the agreement, Spincraft will produce the single-piece fuel and oxygen tank domes for the Atlas V and Delta IV rockets, which are used to deploy navigation, telecommunications, weather, and national security satellites for customers such as the Department of Defense, NASA, and the National Reconnaissance Office. The new contract, which begins in 2014, builds on Spincraft’s current tank dome contract with ULA. This contract realizes key cost reductions for ULA and has yielded higher demand that is expected to increase Spincraft’s volume by 25% during this contract period.1
“This new contract for the single-piece fuel and oxygen tank domes demonstrates the critical importance of our products to both Atlas V and Delta IV Launch Vehicles.,” said Len Paolillo, President of Standex’s Engineering Technologies group. “Our vertically integrated facility in North Billerica MA provides our customer the forming technologies we have developed and improved over the years, along with all the other essential downstream processing required to provide a robust and cost effective solution on their tank components. We are excited about the continued opportunity and confidence United Launch Alliance has in Spincraft on these strategically important programs.”
Standex International Corporation is a multi-industry manufacturer in five broad business segments: Food Service Equipment Group, Engineering Technologies Group, Engraving Group, Electronics Products Group, and Hydraulics Products Group with operations in the United States, Europe, Canada, Australia, Singapore, Mexico, Brazil, Argentina, Turkey, South Africa, India and China. For additional information, visit the Company's website at www.standex.com.
1Safe Harbor Language
Statements in this news release include, or may be based upon, management's current expectations, estimates and/or projections about Standex's markets and industries. These statements are forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may materially differ from those indicated by such forward-looking statements as a result of certain risks, uncertainties and assumptions that are difficult to predict. Among the factors that could cause actual results to differ are the impact of implementation of government regulations and programs affecting our businesses, unforeseen legal judgments, fines or settlements, uncertainty in conditions in the financial and banking markets, general domestic and international economy including more specifically increases in raw material costs, the ability to continue to successfully implement productivity improvements, increase market share, access new markets, introduce new products, enhance our presence in strategic channels and the other factors discussed in the Annual Report of Standex on Form 10-K for the fiscal year ending June 30, 2013, which is on file with the Securities and Exchange Commission, and any subsequent periodic reports filed by the Company with the Securities and Exchange Commission. In addition, any forward-looking statements represent management's estimates only as of the day made and should not be relied upon as representing management's estimates as of any subsequent date. While the Company may elect to update forward-looking statements at some point in the future, the Company and management specifically disclaim any obligation to do so, even if management's estimates change.