Kadant also announced that it has been awarded contracts to provide chemical pulping equipment and a stock-preparation system with a combined value of $17.5 million from pulp and paper producers in Russia and China. Included in this total is a $6.1 million pending order from China that was previously disclosed during the Company's second quarter earnings call on July 28, 2011. The remaining contract awards are from a pulp and paper producer in Russia, and consist of a pending order for $4.2 million and a letter of intent for a second order for $7.2 million, for which the Company expects to receive the signed contract and down payment in the current quarter. The Company has received signed contracts for the pending orders, but will not record them as orders until the down payments are received, which is expected to occur in the third quarter of 2011. The timing and receipt of the down payments and the expected order are subject to a number of uncertainties, and there can be no assurance the Company will be able to record and recognize revenue on these pending or expected orders.
"Our selection for these large projects from Russia, China, Chile, and the U.S. demonstrate our strong position in markets around the world as well as highlight the value of Kadant's application expertise in pulping and fiber processing," said Jonathan W. Painter, president and chief executive officer of Kadant. "We were pleased to have been recognized for our product innovation, equipment reliability, and energy efficient offerings as our customers continue to seek solutions to improve energy utilization, fiber yield, and productivity. As noted during our recent earnings call, we expect to report a solid bookings performance in the third quarter of 2011."