Pacific Aerospace & Electronics Announces $8 Million in New Contract Awards and Consolidation Plans
WENATCHEE, Wash., May 3 /PRNewswire/ -- Pacific Aerospace & Electronics, Inc. (Nasdaq: PCTH - news), announced today that it has recently received new orders valued at over $8 million. Pacific Aerospace & Electronics, which designs and manufactures high performance electronic and metal components, will provide a broad range of products under separate contract awards. These contracts include a $5 million award for aluminum castings for commercial aircraft and a $3 million award for telecommunication electronic components.
In related news, Pacific Aerospace announced that it will be consolidating certain of its operations as part of an overall strategic plan to focus the company's operations and marketing programs as it continues to build a world class manufacturing organization. Werner Hafelfinger, who was recently hired as Vice President Operations, will directly oversee the consolidation effort.
Mr. Hafelfinger stated, ''Pacific Aerospace has done an excellent job of acquiring companies with unique technologies and complimentary businesses in the past few years. Each of these companies has a number of strengths, including first class manufacturing facilities and processes, rigorous quality control, and dedicated, experienced employees. The Company's goal from the outset has been to coordinate the activities of these companies in the most efficient manner in order to take advantage of their many strengths and synergies. We are currently in the process of reorganizing operations to permit us to do just that. We have streamlined operations at our Aeromet America and Cashmere Manufacturing facilities. The next step will be to move the operations of our Balo Precision Parts subsidiary from Butler, New Jersey to Wenatchee, Washington. These operations will be consolidated with the operations of Pacific Coast Technologies, which owns similar technologies and produces similar products. In fact, some of the patented technology used by Balo is owned by Pacific Coast Technologies.''
The consolidation of Balo's electronic packaging operations into PCT is expected to decrease costs of production and increase cross-selling opportunities and operating performance. Pacific Aerospace plans to complete the transition and close the New Jersey facility in approximately 90 days. Balo customers have been notified that the Company intends to complete all work in process according to previously committed schedules and that the Company will continue to quote new projects.
''We believe that these changes will directly strengthen our business model and improve our bottom line results in coming periods for a number of reasons,'' said Don Wright, President and CEO of Pacific Aerospace & Electronics. ''This consolidation is the next step in reaching our goal of providing the best solutions in technology integration to our customers. We expect that this consolidation will result in an expansion of the technologies and services that we can offer to customers and will stimulate more cross-selling activity between our diverse customer base and our other operations. This combination of business units should also help us take advantage of product development and process engineering synergies, with more of our technical talent sharing ideas under one roof.''
Pacific Aerospace & Electronics a diversified, international manufacturing company that develops, manufactures and markets high-performance electronics and metal components and assemblies for the aerospace, defense, electronics and transportation industries. The Company's primary businesses are organized into three operational and marketing units. The Electronics Group develops, manufactures and sells a broad range of precision components, filtering devices, electronics assemblies, and explosively bonded materials designed to operate with a high degree of reliability in harsh environments such as the ocean, space, and the human body. The Aerospace Group provides machined and cast aluminum and metal part and component assemblies for commercial and military aircraft, heavy trucking and automotive uses, primarily in the United States. The Aeromet Group provides magnesium and aluminum precision cast parts and formed titanium and aluminum sheet products to the aerospace, defense and motorsport industries, primarily in Europe.
Forward-looking statements in this release concerning trends or anticipated operating results are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties related to the Company's operations. These risks and uncertainties include, but are not limited to, competitive factors (including the possibility of increased competition or technological development, competitors, and price pressures); legal factors (such as limited protection of the Company's proprietary technology and changes in government regulation); and the Company's dependence on key personnel and significant customers.
SOURCE: Pacific Aerospace & Electronics, Inc. |
