Orbital Corporation Limited (OBTEF) Inactive
Filed: 24 Jun 14, 12:00am
ORBITAL CORPORATION LIMITED ABN 32 009 344 058 | 4 WHIPPLE STREET BALCATTA WA 6021 AUSTRALIA T: +61 8 9441 2311 F: +61 8 9441 2133 www.orbitalcorp.com.au |
FORIMMEDIATERELEASE:23JUNE 2014 | ASX Code: OEC | |
Orbitalsettles contract dispute withAAI Corporation
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Dispute over non-payment of invoices settled
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New terms for future business activities agreed
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AAI will continue to use Orbital “Flex DI” technology
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AAI and Orbital have executed a long term supply agreement for fuel system components and Engine Management Systems
PERTH, AUSTRALIA – Orbital is pleased to announce that it has reached a settlement with AAI Corporation (AAI) over the dispute related to past contracts that had resulted in AAI withholding payment on outstanding invoices.
The terms of the formal settlement are commercially confidential, however as a result of the settlement Orbital expects to recover over $1.2 million of the impairment recorded in the Company’s half year financial report.
Mr William (Bill) Irby, Senior Vice President and General Manager at Textron Systems comments: “The resolution of the dispute is good news for both AAI and Orbital, the parties have entered into a long term agreement that will enable AAI to continue to utilize Orbital technology”.
Mr Terry Stinson, CEO and Managing Director of Orbital comments: “We are very pleased that Orbital and AAI have been able to settle this dispute. Not only will the settlement have a material impact on our financial results and cash flows for the year, more importantly a significant business relationship for Orbital has been restored. AAI Textron will continue to utilize Orbital’s patented FlexDi technology through the supply of engine management systems, fuel system components and spare parts, which will be supplied to AAI’s propulsion system manufacturer.”
-ENDS-
CONTACTS
Terry Stinson
Email: info@orbitalcorp.com.au CEO & Managing DirectorWebsite: www.orbitalcorp.com.au Tel: +61 8 9441 2311
AboutOrbital
Orbitalisaninternationaldeveloperofinnovativetechnical solutionsforacleanerworld.Orbitalprovidesinnovation, design,product developmentandoperationalimprovement servicestotheworld’sproducers, suppliers,regulatorsand endusersofenginesandenginemanagementsystemsforapplicationinmotorcycles,marineandrecreationalvehicles,automobilesandtrucks.Orbital'sprincipaloperationsinPerth,WesternAustralia,provideaworldclassfacilitywithcapabilitiesindesign,manufacturing,developmentandtestingof enginesandenginemanagement systems. HeadquarteredinPerth,WesternAustralia, Orbital stockistraded onthe Australian StockExchange(OEC).
ForwardLookingStatements
Thisreleaseincludesforward-looking statementsthatinvolverisksanduncertainties. Theseforward-looking statementsarebasedupon management'sexpectationsandbeliefsconcerningfutureevents. Forward-looking statementsarenecessarilysubjecttorisks,uncertaintiesandotherfactors,manyofwhichareoutsidethecontroloftheCompany,that couldcauseactualresultstodiffermaterially from such statements.Actualresultsandeventsmay differsignificantlyfromthose projectedintheforward-lookingstatementsasaresultofanumberoffactorsincluding, butnotlimitedto,thosedetailedfromtimetotimeintheCompany’s Form20-F filingswiththeUSSecuritiesandExchangeCommission.Orbital makesnoundertakingtosubsequentlyupdateorrevisethe forward-lookingstatements madeinthisreleasetoreflecteventsor circumstances afterthedateofthis release.