Satair has signed a new global distributor agreement with Eaton Aerospace, one
of the leading systems providers. The new product lines are expected to
increase Satair's annual revenue by USD 20-25 million once the products have
been fully phased in. The agreement is reflective of Satair's active efforts to
expand its product portfolio and broaden its overall product offerings to
customers.
The signing of the new long-term global agreement is an expansion of the
Group's existing strong relationship with Eaton Aerospace which started back in
1991. The agreement will be implemented gradually in the course of FY 2009/10
as existing distribution agreements are terminated and Satair establishes the
necessary inventories. Satair will be paying a license to Eaton Aerospace for
the duration of the agreement.
”As in previous downturns in aerospace, Satair is chasing opportunities for
growth. This has traditionally been a successful approach for us, and so we are
happy to announce a new major distribution agreement with one of our good
existing business partners that enables us to offer our customers an even
broader range of products and
achieve further revenue growth”, says John Staer, CEO of Satair.
With the new global agreement Satair will be offering customers an array of new
products, such as Eaton's electro-mechanical actuators that are used mainly for
doors and flaps systems in most commercial aircraft. The agreement also
includes distribution of pressure switches, pressure transducers and monitoring
systems for debris and other information relating to the hydraulic and oil
systems of aircraft.
The new product lines are expected to increase Satair's annual revenue by USD
20-25 million once the products have been fully phased in, and it will require
investments in the building-up of inventories. While the agreement is not
expected to affect neither revenue nor earnings in the current fiscal year
ending in late June 2009, the effect on revenue and earnings is included in the
outlook for FY 2009/10 announced on September 15, 2009 together with the Annual
Report 2008/09.
