Announces Boeing Contract Award
PACIFIC AEROSPACE & ELECTRONICS ANNOUNCES BOEING CONTRACT AWARD
WENATCHEE, Wash., Jan 18, 2000 /PRNewswire via COMTEX/ -- Pacific
Aerospace & Electronics, Inc. (Nasdaq: PCTH), announced today that the
Company has signed a five-year comprehensive supplier contract with the
Boeing Commercial Aircraft Group for the manufacture of machined and
cast components and assemblies.
The contract combines a number of the Company's locations and
manufacturing capabilities under one master supplier agreement and
clearly denotes that the Company has retained its key customer in an
industry in which the continuing trend is for large manufacturers, such
as Boeing, to retain fewer suppliers.
The Company estimates the contract value in the $55 to $60 million
range based on Boeing's most recent published aircraft manufacturing
schedules. The Company believes that the contract value will grow over
time as the Asia market continues to strengthen and as the Company is
awarded additional part numbers and projects by Boeing.
The contract extends the current manufacturing activity conducted by
PA&E's two largest groups -- the U.S. Aerospace Group and the European
Aerospace Group. The contract initially includes the Machining and
Casting Divisions of the Company's domestic operations and its
international business, Aeromet International. PA&E's Engineering and
Fabrication Divisions are expected to be added to the contract by late
next year. The Company is now qualified to manufacture over 3200
different components and assemblies for Boeing, which could lead to
significant enhancements to the contract in future years.
"This contract further solidifies our standing as a key supplier to the
Boeing Company and positions us for a long-term partnership with
Boeing, as it continues to reduce its supplier base. This contract also
provides us a platform to expand this business area over the next
several years," said Don Wright, CEO of Pacific Aerospace &
Electronics. "We are proud to be able to provide cost-effective total
engineering and manufacturing solutions to companies of Boeing's
caliber by integrating our cross-functional manufacturing resources and
technologies."
Pacific Aerospace & Electronics, Inc. is an international engineering
and manufacturing company specializing in technically demanding
component designs and assemblies for global leaders in the aerospace,
defense, electronics, medical, energy and transportation industries.
The Company is organized into three operational groups -- U.S.
Aerospace, U.S. Electronics and European Aerospace -- with European
operations accounting for approximately half of its revenue. Pacific
Aerospace & Electronics is headquartered in Wenatchee, WA, and has
approximately 1,100 employees worldwide.
SOURCE Pacific Aerospace & Electronics, Inc.
(C) 2000 PR Newswire. All rights reserved.
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CONTACT: Tom Barrows, Investor Relations of Pacific Aerospace
& Electronics, Inc., 509-667-9600; or Julie Rader, Investor
Relations of
StreetConnect, 206-320-1231, for Pacific Aerospace &
Electronics, Inc.
WEB PAGE: pcth.com
GEOGRAPHY: Washington
INDUSTRY CODE: AIR
ARO
CPR
SUBJECT CODE: CON
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