Pratt & Whitney vastly expands deal with Bet Shemesh Engines

Bet Shemesh Engines Photo: Ariel Jerozolimski

Bet Shemesh Engines' revenue under the agreement first signed last December will rise by $530 million to $640 million.

Israeli jet engine components maker Bet Shemesh Engines Ltd. (TASE: BSEN) reported to the Tel Aviv Stock exchange this morning that its agreement with US company Pratt & Whitney had been substantially expanded.

This is the second expansion of the agreement signed by the two companies in December last year. As a result of the current expansion, Bet Shemesh Engines, controlled by the FIMI fund (40.4%), expects to see its revenue from the agreement rise by $530 million to $640 million. The current expansion concerns the development and production of new components for Pratt & Whitney projects in the civilian aviation market, over the period 2018 to 2026. The company adds that tooling up for production will take three years to reach full capacity.

Bet Shemesh Engines had a market cap of NIS 492 million before today's opening, following a 20% decline in its share price in the past three months. Its share price is up 24% in this morning's trading.

Bet Shemesh Engines CEO Ram Drori said today, "The new orders double the value of our long-term framework agreements, which are the basis for the company's development and growth. The expansion of the current agreement is a very important vote of confidence by one of the leading players in the global jet engine manufacturing industry. It comes thanks to the fact that we have met a high level of requirements over time, and a good, stable relationship of trust between the two companies. The deal mainly concerns new engines for narrow-bodied aircraft, which are the main source of growth in the aviation industry. We will shortly start on expansion of the factory to meet the production targets for additional new items from 2018 onwards."

Published by Globes [online], Israel business news - www.globes-online.com - on September 14, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

5 Comments
View comments in rows
Update by email about comments talkback
POST
Comments
Bet Shemesh Engines Photo: Ariel Jerozolimski
Bet Shemesh Engines Photo: Ariel Jerozolimski
Twitter Facebook Linkedin RSS Newsletters גלובס MAD Conference 2017