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.
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.
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.
For further information: Héroux-Devtek Inc., Stéphane Arsenault, Vice President and Chief Financial Officer, Tel.: 450-679-3330, [email protected]; Investor Relations, Hugo Delorme, Tel.: 514-700-5550, ext. 555, [email protected]