Northstar reaches agreement with Sikorsky

Northstar reaches agreement with Sikorsky 22 Feb, 12, Source: Northstar Aerospace

Northstar Aerospace (Canada), Inc. (NAS:TSX) (“Northstar Canada”), a wholly owned subsidiary of Northstar Aerospace, Inc. (the “Corporation”) announced that it has entered into an amendment to a customer agreement and entered into a new customer agreement.

Northstar Canada agreed to amend the Revenue Sharing Agreement with GE Aviation for the CF34-3 program. As previously disclosed in the Corporation’s financial statements, Northstar Canada was scheduled to pay the final contingent installment of U.S. $5 million in early 2012. Under the amendment, Northstar Canada will satisfy this obligation through a combination of cash and payment in kind of parts from April through November 2012.

Additionally, Northstar Canada reached a long-term agreement with Sikorsky Aircraft Corporation to provide parts for the UH-60 Blackhawk helicopter. The agreement provides pricing and forecasted quantities for deliveries in 2013 through 2017. There is no obligation for the amount ordered or the timing of deliveries. Based on the forecasted quantities, the estimated value of this agreement is U.S. $9 million over the five year agreement.

Northstar Aerospace, Inc. (www.nsaero.com) is North America’s leading independent manufacturer of flight critical gears and transmissions. Northstar Aerospace is a public company (TSX:NAS) with operating subsidiaries in the United States and Canada. Its principal products include helicopter gears and transmissions, accessory gearbox assemblies, rotorcraft drive systems and other machined and fabricated parts. It also provides maintenance, repair and overhaul of components and transmissions. The Company’s executive offices are located in Chicago, Illinois. Its plants are located in Chicago, Illinois; Phoenix, Arizona; Milton and Windsor, Ontario, Canada.

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