GLDS .30 Groupe Latecoere Selects Gales Industries Subsidiary for Boeing 777 Cargo Door Parts
New Customer and New Product Support Diversification & Growth Strategies
Jun 21, 2007 11:27:00 AM
Copyright Business Wire 2007
BAY SHORE, N.Y.--(BUSINESS WIRE)--
Gales Industries Incorporated (OTCBB:GLDS), a holding company established to consolidate manufacturers, engineering integrators and specialized service providers to the aerospace/defense industry, today announced that its wholly-owned operating subsidiary, Air Industries Machining Corp. (AIM), has been selected by Groupe Latecoere to manufacture cargo door mechanism parts for the Boeing 777 freighter aircraft. This new order reflects AIM's ongoing diversification initiative. With a global reputation as a leading manufacturer of landing gear and flight safety parts, this new order also marks AIM's entry into the market for door mechanisms parts. Terms of this initial contract were not disclosed.
The cargo door mechanism parts will be manufactured in AIM's Bay Shore, NY, facility and shipped to Latecoere in Toulouse, France, by the end of 2007. Latecoere has been supplying Boeing with passenger doors for the "7" aircraft fleet for nearly three years. Within the last year, Latecoere had been selected by Boeing for production of main deck cargo doors for the freighter version of its 777 aircraft.
"We are pleased to welcome Groupe Latecoere, the French aviation pioneer and a leading global manufacturer of aircraft passenger and cargo doors, as a new customer," said Peter Rettaliata, Chief Executive Officer of Gales. "Supporting our diversification goals, the contract with Latecoere extends our manufacturing capabilities for the first time into the market for aircraft doors, and allows us to further participate as a supply chain partner with Boeing. In less than a month, we have been awarded two separate contracts to supply parts to be used in Boeing commercial aircraft. The opportunity with Boeing alone, which is playing a major role in the commercial aerospace resurgence, is significant to our overall growth and diversification strategies."
Founded in 1917, Groupe Latecoere specializes in design and production of fuselage structure, doors and wiring systems for commercial and military aircraft. Latecoere supplies doors for the world's major commercial, regional and business aircraft programs. In 2006, Latecoere produced over 1,500 aircraft doors for a range of manufacturers.
Boeing is a leading player in the global commercial aerospace resurgence, with an extensive fleet of aircraft provided for passenger as well as cargo flights. In its most recent World Air Cargo Forecast, released in September 2006, Boeing forecasts international air cargo growth to average 6.1 percent over the next 20 years, with Asia-related routes leading that growth. Intra-Asia markets will expand by 8.6 percent, North America-Asia will increase 7.2 percent, and Europe-Asia will average 6.9 percent growth.
According to Boeing, the 777 family of airplanes is popular with passengers and airlines because of its fuel-efficient twin-engine design, high reliability, low operating costs, and comfortable and spacious interior. The 777-300ER typically carries 365 passengers up to 7,930 nautical miles (14,685 kilometers).
With the 787 and 777, Boeing offers a complete family of airplanes to cover the 200- to 400-seat market segment. With complementary range, speed, efficiency and operational commonality, yet differing seating and cargo capacities, airlines can use both models in their fleets to tailor capacity to meet seasonal demand.
The 777 family of airplanes is the market leader in the 300 to 400-seat segment, capturing more than 65 percent of that market. Boeing continues to enhance the 777 family with the recent introduction of two new longer-range models and a freighter version currently in development.
ABOUT GALES INDUSTRIES INCORPORATED
Gales Industries Incorporated (OTCBB:GLDS) is a holding company established to engage in the consolidation of manufacturers, engineering integrators and related service providers to the aerospace/defense and commercial aviation industries. The Company is focused on flight safety and other critical componentry. Consolidation opportunities include companies operating within highly synergistic disciplines of manufacturing, technical services and strategic products distribution. The Company's strategy and attendant tactical plan is to execute its consolidation principally amongst Tier III, IV and V aerospace/defense subcontractors. Gales offers a tailored exit strategy or management continuity strategy in exchange for qualified acquisitions, and targets technically superior middle market organizations with revenues of up to $100 million annually. Information on the Company and its products may be found online at www.airindmc.com.
Certain matters discussed in this press release are 'forward-looking statements' intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. In particular, the Company's statements regarding trends in the marketplace, firm backlog, projected backlog, potential future results and acquisitions, are examples of such forward-looking statements. The forward-looking statements include risks and uncertainties, including, but not limited to, the timing of projects due to the variability in size, scope and duration of projects, estimates, projections and forecasts made by management with respect to the Company's critical accounting policies, firm backlog, projected backlog, regulatory delays, government funding and budgets, matters pertaining to potential and pending acquisitions subject to and after closings, and other factors, including results of financial audits and general economic conditions, not within the Company's control. Certain of the Company's forward looking statements, with the projected backlog in particular, are formulated based on management's extensive industry experience and understanding and assessment of industry trends, customer requirements, and related government spending. Projected backlog may be subject to variability and may increase or decrease at any time based on a variety of factors, including but not limited to modifications of previously released orders, acceleration of orders under general purchase agreements, etc. The factors discussed herein and expressed from time to time in the Company's filings with the Securities and Exchange Commission could cause actual results and developments to be materially different from those expressed in or implied by such statements. The forward-looking statements are made only as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
Source: Gales Industries Incorporated
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Darrow Associates
Inc.
Jordan M. Darrow
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jdarrow@darrowir.com
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