GE Aviation and Woodward Combine Fuel Systems Expertise for New Joint Venture
May 20 2015 - 4:05PM
GE Aviation and Woodward, Inc. (Nasdaq:WWD) today announced a
strategic 50/50 joint venture for fuel systems for GE's large
commercial aircraft engine lines. The new joint venture will
design, develop, source, supply and service the fuel system,
including components from the fuel inlet up to the fuel nozzle, for
the GE90, GEnx, GE9X and all future large commercial engines
developed by GE Aviation. Woodward will be the preferred supplier
to the joint venture.
"The fuel systems are a key component to GE's advanced
technology aircraft engines, and Woodward has a strong reputation
in fuel systems development and manufacturing," said David Joyce,
President and Chief Executive Officer of GE Aviation. "The joint
venture will further strengthen both companies' capabilities and
secure a high quality fuel systems supplier for GE's record
production volume on large commercial engines."
Production rates for jet engines and components from GE Aviation
have increased significantly during the last five years, with large
commercial engine production more than doubling to close to 500
engines in 2015. With a backlog of more than 1,600 high-thrust
engines like the GE90, GEnx and GE9X, the high production rates
will continue well into the future.
"This deal formalizes and strengthens the longstanding
relationship between Woodward and GE and captures significant
content on the new GE9X," said Tom Gendron, Chairman and Chief
Executive Officer of Woodward. "We believe the joint venture
structure will leverage both companies' respective strengths and
optimize fuel system performance."
Under terms of the joint venture agreement, Woodward will
receive $250 million in cash and the parties will participate
jointly in the operating results of the respective programs.
Completion of the transaction is subject only to customary
regulatory approvals, and it is expected to close near the end of
calendar 2015.
This joint venture with Woodward and the related program award
is in line with GE's strategy to ensure a stable supply chain to
manage production volume growth. Among the other notable joint
ventures are partnerships with Aircelle, BAE, NCK, Parker Hannafin,
Safran, SKF and Turbocoating SPA.
Conference Call
Woodward will hold a conference call today at 4:45 p.m. EDT to
provide more details on the joint venture, as well as answer
questions. You are invited to listen to the live webcast of
our conference call, or a recording, and view or download
accompanying presentation slides at our website,
www.woodward.com.
You may also listen to the call by dialing 1-866-206-6154
(domestic) or 1-703-639-1107 (international). Participants
should call prior to the start time to allow for registration; the
Conference ID is 1657452. An audio replay will be available by
telephone from 7:45 p.m. EDT on May 20, 2015 until 11:59 p.m. EDT
on June 3, 2015. The telephone number to access the replay is
1-888-266-2081 (domestic) or 1-703-925-2533 (international),
reference access code 1657452.
A webcast presentation will be available on the website by
clicking the Investors tab, then the Calendar of Events menu
selection and associated webcast link. The call and
presentation will remain accessible at the website for 14
days.
About Woodward, Inc.
Woodward is an independent designer, manufacturer, and service
provider of control system solutions and components for the
aerospace and energy markets. The company's innovative fluid,
combustion, electrical, and motion control systems help customers
offer cleaner, more reliable, and more efficient equipment. Our
customers include leading original equipment manufacturers and end
users of their products. Woodward is a global company headquartered
in Fort Collins, Colorado, USA. Visit our website at
www.woodward.com, and connect with us at
www.facebook.com/woodwardinc.
About GE Aviation
GE Aviation, an operating unit of GE (NYSE:GE), is a
world-leading provider of jet, turboprop and turboshaft engines,
components and integrated systems for commercial, military,
business and general aviation aircraft. GE Aviation has a global
service network to support these offerings. For more information,
visit us at www.ge.com/aviation. Follow GE Aviation on Twitter at
http://twitter.com/GEAviation and YouTube at
http://www.youtube.com/user/GEAviation.
Notice Regarding Forward-Looking Statements
The statements in this release contain forward-looking
statements that involve risks and uncertainties, including
statements concerning production rates, future performance of the
joint venture and timing of closing. Actual results could differ
materially from projections or any other forward-looking statements
and we have no obligation to update our forward-looking statements.
Factors that could affect performance and could cause actual
results to differ materially from projections and forward-looking
statements are described in Woodward's Annual Report and Form 10-K
for the year ended September 30, 2014 and any subsequently filed
Quarterly Report on Form 10-Q.
CONTACT: Don Guzzardo
Director, Investor Relations & Treasury
970-498-3580
Don.Guzzardo@Woodward.com
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