Sparton Corporation and USSI Joint Venture (SonobuoyTech Systems) Awarded $11.4 Million in Direct Foreign Sales Contracts
SCHAUMBURG, Ill. & FORT WAYNE, Ind.--(BUSINESS WIRE)-- Sparton Corporation (SPA) and USSI, a subsidiary of Ultra Electronics Holdings plc (ULE) announce the award of subcontracts valued at $11.4 million from their ERAPSCO/SonobuoyTech Systems joint venture, for the manufacture of multiple Passive and Active Sonobuoys in support of International end user exercises and training. ERAPSCO/SonobuoyTech Systems will provide a manufacturing subcontract in the amount of $9.0 million to Sparton Electronics Florida and $2.4 million to USSI. Production will take place at Spartons DeLeon Springs, FL facility as well as USSIs facility in Columbia City, IN and is expected to be completed by December 2013. Spartons subcontracted amount is not included in its sales backlog for the reporting period ending March 31, 2012.
ERAPSCO/SonobuoyTech Systems was awarded these contracts for Passive and Active sonobuoys that are used for detection, classification, and localization of adversary submarines during peacetime and combat operations.
ERAPSCO/SonobuoyTech Systems is pleased to have been selected to assist our International customer efforts in protecting its borders by providing the leading-edge products developed by our joint venture partners. We welcome opportunities to play a role in the defense activities of our foreign allies and the expansion of the number of contracts weve received from foreign nations demonstrates ERAPSCOs deliberate progress into markets outside the U.S.
About Sparton Corporation
Sparton Corporation, now in its 112th year, is a provider of complex and sophisticated electromechanical devices with capabilities that include concept development, industrial design, design and manufacturing engineering, production, distribution, field service, and refurbishment. The primary markets served are Medical, Military & Aerospace, and Industrial & Instrumentation. Headquartered in Schaumburg, IL, Sparton currently has five manufacturing locations worldwide. Sparton's Web site may be accessed at http://www.sparton.com.
Further information about Ultra:
Ultra Electronics is an internationally successful defence, security, transport and energy company with a long, consistent track record of development and growth. Ultra businesses constantly innovate to create solutions to customer requirements that are different from and better than those of the Groups competitors. The Group has over one hundred and eighty distinct market or technology niches within its twenty eight businesses. The diversity of niches enables Ultra to contribute to a large number of defence, aerospace and civil platforms and programmes and provides resilience to the Groups financial performance.
Ultra has world-leading positions in many of its niches and, as an independent, non-threatening partner, is able to support all of the main prime contractors with specialist capabilities and solutions. As a result of such positioning, Ultras systems, equipment or services are often mission-critical to the successful operation of the platform to which they contribute. In turn, this mission-criticality secures Ultras positions for the long term which underpin the superior financial performance of the Group.
Ultra offers support to its customers through the design, delivery and support phases of a programme. Ultra businesses have a high degree of operational autonomy where the local management teams are empowered to devise and implement competitive strategies that reflect their expertise in their specific niches. The Group has a small head office and executive team that provide to the individual businesses the same agile, responsive support that they provide to customers as well as formulating Ultras overarching, corporate strategy.
Safe Harbor and Fair Disclosure Statement
Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: To the extent any statements made in this release contain information that is not historical, these statements are essentially forward-looking and are subject to risks and uncertainties, including the difficulty of predicting future results, the regulatory environment, fluctuations in operating results and other risks detailed from time to time in Sparton's filings with the Securities and Exchange Commission (SEC). The matters discussed in this press release may also involve risks and uncertainties concerning Sparton's services described in Sparton's filings with the SEC. In particular, see the risk factors described in Sparton's most recent Form 10K and Form 10Q. Sparton assumes no obligation to update the forward-looking information contained in this press release.
Greg Slome, 847-762-5812
Mike Osborne, 847-762-5814
Institutional Marketing Services (IMS)
John Nesbett/Jennifer Belodeau
Source: Sparton CorporationCopyright Business Wire 2012