Woodward and GE Aviation initiate large engine fuel systems joint venture

Woodward and GE Aviation mannounced the formal creation of the large engine fuel systems joint venture announced on May 20th, 2015. Under terms of the agreements related to the joint venture, Woodward received US$250m from GE Aviation on January 5th, in exchange for GE Aviation’s acquisition of its equity interest in the joint venture. GE Aviation and Woodward will participate equally in the operating results of the joint venture programs and the future cash flows from the joint venture. The joint venture will design, develop, source, supply and service fuel system components from the inlet up to the fuel nozzle for the GE90, GEnx, GE9X and all future large commercial engines developed by GE Aviation. Woodward will be the preferred supplier to the joint venture. As a result, Woodward content on the GE9X engine will increase significantly, compared to the GE90 engine. As previously announced, Woodward has completed US$125m in share repurchases through an accelerated stock repurchase program in the second half of fiscal year 2015. This was part of a previously announced US$25m share repurchase initiative, and Woodward intends to complete the remaining US$125m in share repurchases during the first half of fiscal year 2016.