Value of the five-year agreement could exceed $46 million
FARNBOROUGH, United Kingdom, July 17, 2014 /CNW Telbec/ - Héroux-Devtek Inc. (TSX: HRX), ("Héroux-Devtek" or the "Corporation"), a leading Canadian manufacturer of aerospace products, today announced that it has renewed an important multi-year contract with Bell Helicopter for the manufacturing of components and assemblies for several helicopter programs.
Under the terms of the agreement, Héroux-Devtek will manufacture the main rotor hub and the tail rotor hub for the new Bell 505 Jet Ranger X, as well as for the 206B and 206L helicopter models. Héroux-Devtek will also manufacture tail rotor hubs, as well as other drive system components, for the 212, 407 and 412 aircraft. The contract renewal spans a five-year period ranging from calendar year 2015 through calendar year 2019 and calls for the production of components for new aircraft and the aftermarket. Based on current program expectations, the total value of this multi-year agreement could exceed $46 million.
"The renewal of this important multi-year contract broadens the scope of Héroux-Devtek's longstanding relationship with Bell Helicopter to include the new 505 Jet Ranger X aircraft. We are proud to provide high-quality components and assemblies to Bell Helicopters' extensive aircraft portfolio and expanding our long-term agreement to a new program allows us to leverage our expertise, thus creating more value for our customers and shareholders," said Gilles Labbé, President and Chief Executive Officer of Héroux-Devtek.
Héroux-Devtek Inc. (TSX: HRX) is a Canadian company specializing in the design, development, manufacture and repair and overhaul of landing gear and actuation systems and components for the Aerospace market. The Corporation is the third largest landing gear company worldwide, supplying both the commercial and military sectors of the Aerospace market with new landing gear systems and components, as well as aftermarket products and services. The Corporation also manufactures electronic enclosures, heat exchangers and cabinets for suppliers of airborne radar, electro-optic systems and aircraft controls through its Magtron operations. On a pro forma basis, approximately 75% of the Corporation's sales are outside Canada, including 50% in the United States. The Corporation's head office is located in Longueuil, Québec with facilities in the Greater Montreal area (Longueuil, Laval and St-Hubert); Kitchener and Toronto, Ontario; Springfield and Cleveland, Ohio; Wichita, Kansas; and Runcorn, Nottingham and Bolton, United Kingdom.
Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of the Corporation. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for the Corporation's products and services, the impact of price pressures exerted by competitors, and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.
SOURCE: Héroux-Devtek Inc.
For further information:
From: Héroux-Devtek Inc.
President and Chief Executive Officer
Tel.: (450) 679-3330
Martin Goulet, CFA
Tel.: (514) 731-0000