ESCO Announces $40 Million Project at VACCO
ST. LOUIS, July 1, 2010 /PRNewswire via COMTEX/ --
ESCO Technologies Inc. (NYSE: ESE) today announced that VACCO Industries has successfully concluded contract negotiations to provide the next seven ship-sets of ultra quiet valves and manifolds for the U.S. Navy's highly successful Virginia Class submarine program. The total negotiated price is approximately $40 million with product deliveries expected to begin in fiscal 2010, and concluding in fiscal 2014. VACCO's current backlog will increase by $7.7 million in fiscal 2010 as these orders are received. VACCO expects to receive formal purchase orders for these products over the upcoming months.
VACCO's customer is the Electric Boat Division of General Dynamics Corporation, located in Groton, Connecticut. Electric Boat is the designer, and in partnership with Newport News Shipbuilding Company, is also the builder of the Virginia Class submarines.
All of the components in this project consist of VACCO's proprietary "quiet" designs, including multiple air reducing manifold stations, air and water flow control valves, and various pressurization and venting devices. These state-of-the-art products all contribute to one of the most important attributes of a Virginia Class submarine's operating strength: stealth capability. Stealth capabilities allow our Navy to operate without discovery while performing its global missions under the sea.
Antonio Gonzalez, President, VACCO Industries, commented, "We are very pleased to be selected once again to supply these critical components for our nation's fleet of submarines. Electric Boat's actions further validate our many years of successful engineering development, our production of superior quality hardware, and our dedicated service to our long-time Navy customers. In addition, this sizable project is anticipated to add strength and long-term stability to our operating forecast."
Forward-Looking Statement
Statements in this press release regarding the timing, likelihood, value, backlog increase and impact to VACCO's operating forecast resulting from the expected orders from Electric Boat and any other statements which are not strictly historical are "forward- looking" statements within the meaning of the safe harbor provisions of the federal security laws. Investors are cautioned that such statements are only predictions and speak only as of the date of this release, and the Company undertakes no duty to update. The Company's actual results in the future may differ materially from those projected in the forward-looking statements due to risks and uncertainties that exist in the Company's operations and business environment including, but not limited to: the timing and content of future purchases of the Company's products by Electric Boat; the Company's successful performance of requirements for Electric Boat; changes in Electric Boat's or the U.S. Navy's demands or financial constraints impacting Electric Boat or the U.S. Navy; technical difficulties; delivery delays or defaults impacting the Company's contracts; and termination for convenience of the Company's contracts.
ESCO, headquartered in St. Louis, is a proven supplier of special purpose utility solutions for electric, gas and water utilities, including hardware and software to support advanced metering applications and fully automated intelligent instrumentation. In addition, the Company provides engineered filtration products to the aviation, space and process markets worldwide and is the industry leader in RF shielding and EMC test products. Further information regarding ESCO and its subsidiaries is available on the Company's web site at www.escotechnologies.com.
SOURCE ESCO Technologies Inc.
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