CONTRACT AWARDS

RNS Number : 1647T

Chemring Group PLC

02 July 2018

 

FOR IMMEDIATE RELEASE                                                                                 2 JULY 2018

CHEMRING GROUP PLC ("Chemring", the "Group" or the "Company")

CONTRACT AWARDS

Chemring Group is pleased to announce that its US based subsidiary, Chemring Countermeasures USA ("CCM USA"), has been awarded two contracts totalling approximately $42 million.

The first contract, which is for the manufacture and delivery of M206 and MJU-7A/B infrared decoys for the US Army and Air Force, is valued at approximately $32 million, and was awarded under CCM USA's current 5-year Indefinite Delivery Indefinite Quantity ("IDIQ") contract with the US Army Garrison at Rock Island Arsenal. Deliveries under this contract will be made between 2018 and 2019, with all work to be performed at CCM USA's facility in Toone, Tennessee. 

The second contract, which is for the manufacture and delivery of MJU-66 Special Material Decoys for the US Air Force, is valued at approximately $10 million and is the second award under the $29 million IDIQ that was announced in August 2017. Deliveries under this contract will be made in 2019, with all work to be performed at CCM USA's facility in Chester Township, Pennsylvania. 

Michael Ord, Group Chief Executive of Chemring, commented:

"These contracts demonstrate the continued confidence of the US Army and Air Force in Chemring's ability to develop and supply quality aircraft countermeasures, and it reinforces the Group's decision to invest in the transformation project at our Tennessee facility.

"These contracts complete the required FY18 order intake in our Countermeasures segment, provide a strong platform for FY19, and are further evidence of the recovery, and our strengthening position, in the global countermeasures market."

-ENDS-

For further information:

Rupert Pittman            Group Director of Corporate Affairs,                          01794 833901

Chemring Group PLC              

Andrew Jaques            MHP Communications                                                020 3128 8100

James White

Notes to editors

·       Chemring is a global business that specialises in the manufacture of high technology products and the provision of services to the aerospace, defence and security markets

·       Employing approximately 2,600 people worldwide, and with production facilities in four countries, Chemring meets the needs of customers in more than fifty countries

·       Chemring is organised under three strategic product segments: Countermeasures, Sensors, and Energetics

·       Chemring has a diverse portfolio of products that deliver high reliability solutions to protect people, platforms, missions and information against constantly changing threats

·       Operating in niche markets and with strong investment in research and development ("R&D"), Chemring has the agility to rapidly react to urgent customer needs

www.chemring.co.uk

Cautionary statements

This announcement contains unaudited information based on management accounts and forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such as anticipate, target, expect, estimate, intend, plan, goal, believe, will, may, should, would, could, is confident, or other words of similar meaning. Undue reliance should not be placed on any such statements because they speak only as at the date of this document and, by their very nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results, and Chemring's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements.

There are a number of factors which could cause actual results to differ materially from those expressed or implied in forward-looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are; increased competition, the loss of or damage to one or more key customer relationships, changes to customer ordering patterns, delays in obtaining customer approvals for engineering or price level changes, the failure of one or more key suppliers, the outcome of business or industry restructuring, the outcome of any litigation, changes in economic conditions, currency fluctuations, changes in interest and tax rates, changes in raw material or energy market prices, changes in laws, regulations or regulatory policies, developments in legal or public policy doctrines, technological developments, the failure to retain key management, or the key timing and success of future acquisition opportunities or major investment projects.

Chemring undertakes no obligation to revise or update any forward-looking statement contained within this announcement, regardless of whether those statements are affected as a result of new information, future events or otherwise, save as required by law and regulations.

No statement in this announcement is intended as a profit forecast for FY18 and no statement in this announcement should be interpreted to mean that underlying operating profit for the current or future financial years would necessarily be above a minimum level, or match or exceed the historical published underlying operating profit or set a minimum level of underlying operating profit.

 

END

 

 

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