TAT Technologies Ltd. (Nasdaq:TATT; TASE:TATTF) has won its fourth contract with Brazilian aircraft manufacturer Embraer SA (Bovespa: EMBR3; NYSE: ERJ), to design, manufacture, integrate, test, and provide product support for the pre-cooler to be incorporated into the Embraer's new KC-390 airliner. The KC-390 is due to enter service in 2016.
TAT estimates its revenue from the contract at $4 million over ten years, assuming the successful development and marketing of the new aircraft. The company also believes that it will earn aftermarket and support revenue.
TAT has already won Embraer contracts to supply pack back-up heat exchanger and pre-cooler heat exchangers for the Legacy 450 and Legacy 500 executive jets, and a contract to provide pre-coolers for the Phenom 300 light business jet.
TAT president and CEO Itsik Maaravi said, "This signed contract with Embraer Defense and Security is a significant achievement for the company and demonstrates TAT's continuing ability to support Embraer with turn key solutions. It furthers TAT's strategy to be one of the world's leading designers and manufacturer of heat management solutions and products."
TAT's share price opened at $4.47 on Nasdaq today, giving a market cap of $39.4 million, after remaining unchanged at NIS 16.90 on the TASE today.
Published by Globes [online], Israel business news - www.globes-online.com - on July 11, 2012
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