Air Industries Group CEO Updates Growth Strategy, Announces Substantial, Opportunistic Investments in New Machinery, Gives Ne...
August 03 2020 - 8:30AM
Business Wire
Air Industries Group (NYSE AMEX:
AIRI):
Air Industries Group (“Air Industries” or the “Company”), an
integrated manufacturer of precision equipment assemblies and
components for leading aerospace and defense prime contractors
today announced that it is evolving and accelerating its growth
strategy in response to the pandemic induced severe contraction
occurring in the Aerospace industry.
Lou Melluzzo, CEO of Air Industries said, “I am very excited
about the opportunity Air Industries has in the Aerospace industry.
It may seem counter-intuitive to make any investment in the
Aerospace industry amid the disruption due to Covid-19, but Air
Industries is in the enviable positon of having a very large
backlog. Our capacity expansion with new, state-of-the-art machines
acquired at opportunistic prices will greatly enhance productivity
and sales. We expect all of the new equipment to be delivered in
September or early October and be fully operational, contributing
to production in the fourth quarter.
The impact of the virus on the commercial aerospace industry is
severe but defense aerospace has not seen any dramatic effects. Air
Industries is highly concentrated on military aerospace components.
While we have seen deferrals of product orders for commercial
product, we are filling the gap by accelerating, that is “pulling
in”, production of military hardware. We further believe that the
contraction in commercial demand will result in production moving
to suppliers who are clearly well positioned to survive this
cycle.
During July, Air Industries has issued purchase orders for over
$ 2.5 million in new machinery.
The most substantial investment is the purchase of a Mitsui
Seiki Model HU100-5X, five-axis horizontal machining center with a
list price of $ 2.8 million. This equipment was ordered and then
canceled by a large OEM, providing us with the opportunity to
acquire the equipment at a discount of approximately 33%. The
machine is expected onsite by September 1, 2020 and we will work to
immediately bring it on line.
In addition the Company has purchased a state of the art 5-axis
milling cell, consisting of two DMG 100U machining centers together
with a Fastems Automatic Pallet System, capable of automated
“lights out” production. Finally a new vertical honing machine from
Ohio Tool Works that is much larger than our existing equipment,
expanding the envelope of our capabilities. These machines will
also be delivered in September and October.
The pandemic did have a significant and negative short term
impact on Air Industries. We suffered increased employee
absenteeism and disruption due to temporary closures of supplier’s
facilities in the second quarter, which caused a decline in revenue
for the quarter. However, our results are in line with analyst’s
expectations. We expect our third quarter results to be
significantly better and improve further in the fourth quarter of
2020 and beyond.”
Investor Conference
Call
Management will host a conference call on
Monday August 10, 2020 at 4:30PM Eastern
Conference Toll-Free Number –
800.309.1256
Passcode – 887 600
Additional information about the Company can be found in its
filings with the SEC.
ABOUT AIR INDUSTRIES GROUP
Air Industries Group (AIRI) is an integrated manufacturer of
precision equipment assemblies and components for leading aerospace
and defense prime contractors.
Forward Looking Statements
Certain matters discussed in this press release are
'forward-looking statements' intended to qualify for the safe
harbor from liability established by the Private Securities
Litigation Reform Act of 1995. In particular, the Company's
statements regarding trends in the marketplace, future revenues,
earnings and Adjusted EBITDA, the ability to realize firm backlog
and projected backlog, cost cutting measures, potential future
results and acquisitions, are examples of such forward-looking
statements. The forward-looking statements are subject to numerous
risks and uncertainties, including, but not limited to, the timing
of projects due to variability in size, scope and duration, the
inherent discrepancy in actual results from estimates, projections
and forecasts made by management, regulatory delays, changes in
government funding and budgets, and other factors, including
general economic conditions, not within the Company's control. The
factors discussed herein and expressed from time to time in the
Company's filings with the Securities and Exchange Commission could
cause actual results and developments to be materially different
from those expressed in or implied by such statements. The
forward-looking statements are made only as of the date of this
press release and the Company undertakes no obligation to publicly
update such forward-looking statements to reflect subsequent events
or circumstances.
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version on businesswire.com: https://www.businesswire.com/news/home/20200803005137/en/
Air Industries Group Investor Relations 631.328.7078
ir@airindustriesgroup.com
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