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Esterline Reiterates Full-Year Guidance Despite Ongoing Talks With Canadian Government R&D Panel
| Source: Esterline Technologies
BELLEVUE, WA--(Marketwire - August 5, 2008) - Esterline Corporation (NYSE : ESL )
(www.esterline.com), a leading specialty manufacturer serving
aerospace/defense markets, today reported that terms-and-conditions
discussions with the Canadian government regarding a research and
development investment proposal and related claim under a government
assistance program have been deferred through Parliament's summer recess.
Robert W. Cremin, Esterline CEO, referring to Bombardier's widely reported
launch of its new C-Series family of single-aisle jets, said, "The flurry
of activity surrounding this recent announcement, and Bombardier's related
negotiations with Canada over launch investment, influenced the timing of
Esterline's discussions with Industry Canada's Industrial Technologies
Office's SADI* committee." Cremin said, "...our talks regarding the
proposal are now targeted for September."
Given the change in the timing, Cremin said third quarter earnings per
share, "...should be in the $.55 to $.60 range." More importantly, Cremin
reiterated Esterline's previous full-year earnings per share guidance range
of $3.45 to $3.55, indicating comfort with the upper end of that range. He
said, "...indicators are pointing up for Esterline as our operations
continue to perform ahead of our expectations."
As Esterline previously reported, the level of contributions received from
government agencies, including Industry Canada, affects the company's net
R&D expense. In 2007, the Canadian government amended its technology
contribution program. Esterline, in turn, presented a proposal under the
new plan for funding support of technology programs currently under way.
A conference call is scheduled for later today at 5 p.m. EDT (2 p.m. PDT).
Listeners may access the conference call live over the Internet at
www.esterline.com. The company's regularly scheduled third quarter
conference call will take place on Thursday, August 28, at 5 p.m. EDT (2
p.m. PDT).
* Industry Canada is the Canadian Federal Ministry that manages the
Strategic Aerospace Defense Initiative, or SADI
http://ito.ic.gc.ca/epic/site/ito-oti.nsf/en/h_00022e.html
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 including its
most recent Annual Report on Form 10-K.