LONGUEUIL, QC, May 5, 2020
/CNW Telbec/ - Héroux-Devtek Inc. (TSX: HRX) ("Héroux-Devtek" or
the "Corporation"), a leading international manufacturer of
aerospace products and the world's third-largest landing gear
manufacturer, today announced restructuring initiatives driven
by lower production rates in the commercial aerospace market due to
the ongoing pandemic.
These initiatives will result in a 10% reduction of the
Company's total workforce, or approximately 225 employees, of which
125 are located in Quebec. As a
result, the Company will be closing its plant that was formerly
known as Alta Precision.
"While our defense activities have been generally insulated from
the global pandemic, we are seeing lower demand for our commercial
products. We must therefore take the difficult but necessary
decision to rationalize our cost structure by adjusting our
manufacturing capacity to the current unprecedented environment. We
regret the impact these actions will have on affected employees and
will put in place appropriate measures to support them," said
Martin Brassard, President and
CEO.
These initiatives, which will be completed over the remainder of
the fiscal year, will result in a non-recurring charge totalling
approximately $12.0 million before
taxes accounted for in the first quarter of Fiscal 2021.
FORWARD-LOOKING STATEMENTS
Except for historical information, this press release contains
information and statements of a forward-looking nature concerning
the future performance of the Corporation.
Forward-looking statements are based on assumptions and
uncertainties as well as on management's best possible evaluation
of future events. Such factors may include, without excluding other
considerations, the impact of the COVID-19 pandemic, fluctuations
in quarterly results, evolution in customer demand for the
Corporation's products and services, the impact of price pressures
exerted by competitors, and general market trends or economic
changes.
As a result, readers are advised that actual results may differ
from expected results. Please refer to the Corporations' latest
MD&A for further details regarding the material assumptions
underlying the forecasts and guidance. Such forecasts and guidance
are provided for the purpose of assisting the reader in
understanding the Corporation's financial performance and prospects
and to present management's assessment of future plans and
operations, and the reader is cautioned that such statements may
not be appropriate for other purposes.
ABOUT HÉROUX-DEVTEK
Héroux-Devtek Inc. (TSX: HRX) is an international company
specializing in the design, development, manufacture, repair and
overhaul of aircraft landing gear, hydraulic and electromechanical
actuators, custom ball screws and fracture-critical components for
the Aerospace market. The Corporation is the third-largest landing
gear company worldwide, supplying both the commercial and defence
sectors. Approximately 90% of the Corporation's sales are outside
of Canada, including about 50% in
the United States. The
Corporation's head office is located in Longueuil, Québec with facilities in
Canada, the United States, the United Kingdom and Spain.
SOURCE Héroux-Devtek Inc.