BELLEVUE, Wash., August 5, 2008 — Esterline Corporation, (NYSE/ESL www.esterline.com), a leading specialty manufacturer serving aerospace/defense markets, today reported that terms-and-conditions discussions with the Canadian government regarding a research and development investment proposal and related claim under a government assistance program have been deferred through Parliament’s summer recess.
Robert W. Cremin, Esterline CEO, referring to Bombardier’s widely reported launch of its new C-Series family of single-aisle jets, said, “The flurry of activity surrounding this recent announcement, and Bombardier’s related negotiations with Canada over launch investment, influenced the timing of Esterline’s discussions with Industry Canada’s Industrial Technologies Office’s SADI* committee.” Cremin said, “…our talks regarding the proposal are now targeted for September.”
Given the change in the timing, Cremin said third quarter earnings per share, “…should be in the $.55 to $.60 range.” More importantly, Cremin reiterated Esterline’s previous full-year earnings per share guidance range of $3.45 to $3.55, indicating comfort with the upper end of that range. He said, “…indicators are pointing up for Esterline as our operations continue to perform ahead of our expectations.”
As Esterline previously reported, the level of contributions received from government agencies, including Industry Canada, affects the company’s net R&D expense. In 2007, the Canadian government amended its technology contribution program. Esterline, in turn, presented a proposal under the new plan for funding support of technology programs currently under way.
A conference call is scheduled for later today at 5 p.m. EDT (2 p.m. PDT). Listeners may access the conference call live over the Internet at www.esterline.com. The company’s regularly scheduled third quarter conference call will take place on Thursday, August 28 at 5 p.m. EDT (2 p.m. PDT).
* Industry Canada is the Canadian Federal Ministry that manages the Strategic Aerospace Defense Initiative, or SADI http://ito.ic.gc.ca/epic/site/ito-oti.nsf/en/h_00022e.html
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