FORT COLLINS, Colo., May 20, 2015 (GLOBE NEWSWIRE) -- 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.
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