(Bloomfield, Conn., July 1, 2009) -- (Nasdaq: KAMN) Kaman Corporation announced today that its Precision Products operation has entered into a contract modification with the United States Air Force (USAF) for the award of Options 6, 7 and 8 under the company's multi-option Joint Programmable Fuze (JPF) contract. The modification provides new prices and quantities for the next three option buys upon exercise and updates the original contract negotiated in 1997.
The new value of the next option (Option 6) of the contract is approximately $53 million. Deliveries are expected to begin in the second quarter of 2010. Upon exercise, the value of Options 7 and 8 will depend on the quantity options selected by the USAF, add-ons, foreign military orders and future funding.
"This contract modification award is the result of our efforts to attain profitability on sales of the JPF to the Air Force," said Neal J. Keating, Chairman, President and Chief Executive Officer. Jim Larwood, Division President, Precision Products added, "We expect sales to the USAF under this revised contract to be profitable and support our long-term strategy and expectations for the Precision Products business." Keating concluded, "The successful negotiation of this contract modification has been a long term goal for Jim and his team and we are very pleased with their efforts and the result."
The JPF is an electro-mechanical bomb safing and arming device for the USAF. The JPF allows the settings of a weapon to be programmed in flight and is the current bomb fuze of choice of the USAF. In addition to the USAF, multiple nations currently utilize the JPF and further international market growth is planned. Kaman produces more than 2,000 JPFs per month at facilities in Orlando, Florida and Middletown, Connecticut.
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