Héroux-Devtek Announces Workforce Adjustments at its Longueuil Facility
LONGUEUIL, Québec, March 15, 2018 (GLOBE NEWSWIRE) -- Héroux-Devtek Inc. (TSX:HRX) ("Héroux-Devtek" or the "Corporation"), a leading international manufacturer of aerospace products, today announced workforce adjustments of about 60 employees at its Longueuil facility following the non-renewal of services provided to the US Air Force announced on March 27, 2017. The Corporation indicated at that time that the volume of business for this contract would progressively be reduced during the fiscal year ending March 31, 2019. Heroux-Devtek's workforce totals approximately 1,365 employees.
"The transformations affecting our industry require a great deal of flexibility and the ability to adapt quickly. Héroux-Devtek must be proactive in order to remain competitive. The loss of this major contract with the US Air Force has forced us to make changes to our maintenance and repair activities at our Longueuil facility. We regret the consequences of this decision for the affected employees and their families, and we would like to thank them for their dedication to our organization. Most of the layoffs will take place in May, and we will take the necessary measures to provide these employees with appropriate support," said Gilles Labbé, President and CEO of Héroux-Devtek.
Despite this situation, Heroux-Devtek has a strong backlog for this financial year and for many years ahead. The management team is working with key customers in the commercial and defense sectors in order to obtain new contracts.
These workforce adjustments along with other restructuring costs related to the decrease in volume discussed above will result in non-recurring charges totalling approximately $5 million before taxes, which will mainly be recorded in the fourth quarter of the fiscal year ending March 31, 2018.
FORWARD-LOOKING STATEMENTS
Except for historical information provided herein, 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, 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 see the Guidance section in the Corporation's MD&A for the quarter ended December 31, 2017, 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.
PROFILE
Héroux-Devtek Inc. (TSX:HRX) is an international company specializing in the design, development, manufacture and repair and overhaul of landing gear and actuation systems and components for the Aerospace market. The Corporation is the third largest landing gear company worldwide, supplying both the commercial and defence sectors of the Aerospace market with new landing gear systems and components, as well as aftermarket products and services. The Corporation also manufactures hydraulic systems, fluid filtration systems and electronic enclosures. Approximately 90% of the Corporation's sales are outside Canada, including about 65% in the United States. The Corporation's head office is located in Longueuil, Québec with facilities in the Greater Montreal area (Longueuil, Laval and St-Hubert); Kitchener, Cambridge and Toronto, Ontario; Springfield and Strongsville, Ohio; Wichita, Kansas; Everett, Washington; and Runcorn, Nottingham and Bolton, United Kingdom.
From:
Héroux-Devtek Inc.
Gilles Labbé
President and Chief Executive Officer
Tel.: (450) 679-3330
Contact:
Héroux-Devtek Inc.
Stéphane Arsenault
Chief Financial Officer
Tel.: (450) 679-3330
MaisonBrison
Pierre Boucher
Tel.: (514) 731-0000
News published on and distributed by:
