| |
 |
|
News |
 |
|
 |
| |
FOR IMMEDIATE RELEASE
June 28th, 2007
ESTERLINE REACHES AGREEMENT ON INSURANCE CLAIM
RELATED TO LAST YEAR’S EXPLOSION AT UK FACILITY
Company to Receive $32 Million in Addition to Earlier Payments
BELLEVUE, Wash., June 28, 2007 — Esterline Corporation (NYSE:ESL www.esterline.com) today announced an agreement with its insurance carrier to settle property damage and business interruption claims related to last year’s explosion at Esterline’s UK-based countermeasure flares operation, Wallop Defence Systems. The agreement calls for a payment to Wallop of £16 million upon settlement. Including payments already received, the total settlement is equal to £24 million, or approximately $48 million.
Robert W. Cremin, Esterline's chief executive officer, said he hopes the settlement brings some closure for employees. He said, “…this has been a trying time for all Wallop employees and passing this major milestone will allow us to move forward with the rebuilding and, hopefully, healing process.”
The insurance recovery will be recorded in the company’s fiscal third quarter and is estimated to be $23 million net of tax, or $.87 per diluted share. Cremin reiterated comments he made to investors in May, reminding them that, “…we would much rather be shipping product than booking insurance proceeds.” Cremin said the settlement does not change the fundamental outlook of the company. He said, “…our earnings guidance for fiscal 2007 remains unchanged at $2.50 to $2.60 per share, plus the incremental effect from the settlement.”
Regarding plans to rebuild the damaged facility, Cremin said, “… we have begun the formal process by submitting plans to appropriate jurisdictions. We’re working very closely with our principal customer and strategic partner, the British Ministry of Defence, to provide current and future countermeasure requirements. Our hope is to have a new facility fully qualified and operational by the third or fourth quarter of fiscal ’08.”
About Esterline
Esterline is a leading world-wide supplier to the aerospace and defense industry specializing in three core areas: Avionics & Controls, Sensors & Systems, and Advanced Materials.
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “potential,” “predict,” “should” or “will,” or the negative of such terms, or other comparable terminology.These forward-looking statements are only predictions based on the current intent and expectations of the management of Esterline, are not guarantees of future performance or actions, and involve risks and uncertainties that are difficult to predict and may cause Esterline’s or its industry’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Esterline's actual results and the timing and outcome of events may differ materially from those expressed in or implied by the forward-looking statements due to risks detailed in Esterline's public filings with the Securities and Exchange Commission.
|
| |
|
| |
* requires the FREE Adobe Acrobat Reader  |
| For the full release* including the
Consolidated Statement of Operations
and the Consolidated Balance Sheet Click Here |
Return to Top / Home
|
|
