BERWYN, Pa., May 26, 2020 /PRNewswire/ -- Triumph Group, Inc.
(NYSE: TGI) ("Triumph" or the "Company") today provided an
update on the current impact of the coronavirus (COVID-19) on the
business and the steps the Company is taking to mitigate it.
- All 36 of Triumph's operational factories have returned to safe
operational status following closures related to
government-mandated shutdowns, COVID-19 cases, and temporary
closure of customer facilities.
- The State of Baja in
Mexico approved aerospace
factories, including Triumph's Mexicali interiors operation that supports
Boeing and Airbus deliveries, to return to work. Employees
have returned to work at levels consistent with customer
demand.
- Selected sites with stay at home orders for non-essential
salaried personnel will return to work in waves consistent with
local government approvals.
The Company also reported on further safeguards made available
to its sites as follows:
- Over 100,000 face coverings have been provided to Triumph
personnel to ensure their safety.
- Temperature screening equipment has been added at multiple U.S.
and international sites and thermometers provided to over 5,000
employees for self-checks.
- Designation of usable and restricted areas and traffic patterns
to limit employee exposure risks.
- Use of inhouse and third-party cleaning services in commonly
used areas.
- Adoption of staggered shifts at sites to reduce congestion at
start and end of shifts.
To align capacity with short- and medium-term customer demand,
conserve cash and maintain long-term competitiveness, the following
actions are underway:
- Given the latest Boeing, Airbus and engine provider demand
rates that provide sustaining levels of production at Triumph
factories, Triumph has recalled approximately 2,000 of the
previously announced 4,200 furloughs to resume production of OEM
hardware.
- The previously announced 700-person reduction in force of
salaried positions as part of its austerity measures has been
completed. Triumph will reduce headcount to match the
near-term forecast and conserve cash while preparing for the
recovery in production rates and MRO demand.
- To reduce inventory and working capital expenditures, the
Company is also adjusting its supply chain demand consistent with
updated OEM production and aftermarket forecasts received in early
May.
These actions preserve Triumph's liquidity allowing Triumph to
continue to support its customers' anticipated rates of production.
Further workforce adjustments may be required based on site
closures or changes in demand for Triumph's products and services.
As of March 31, 2020, Triumph
had over $550.0 million in cash and
availability under its revolving credit agreement to support its
working capital requirements.
Daniel J. Crowley, President and
CEO of Triumph Group, commented, "Our workforce's strong response
to the COVID-19 crisis has minimized employee risks and customer
impacts. We are increasing our safeguards to protect our people and
ensure that any new infection cases are addressed quickly. Customer
demand is firming up and we have secured orders to sustain economic
production levels. We look forward to returning all employees to
work consistent with state and local timelines."
About Triumph
Triumph Group, Inc., headquartered in
Berwyn, Pennsylvania, designs,
engineers, manufactures, repairs and overhauls a broad portfolio of
aerospace and defense systems, components and structures. The
company serves the global aviation industry, including original
equipment manufacturers and the full spectrum of military and
commercial aircraft operators. More information about Triumph can
be found on the Company's website at www.triumphgroup.com.
Forward Looking Statements
Statements in this release
which are not historical facts are forward-looking statements under
the provisions of the Private Securities Litigation Reform Act of
1995, including statements of expectations of or assumptions about
our financial results for fiscal year 2020, and our ability to
achieve cost savings and the benefits of our operational efficiency
initiatives. All forward-looking statements involve risks and
uncertainties which could affect the Company's actual results and
could cause its actual results to differ materially from those
expressed in any forward-looking statements made by, or on behalf
of, the Company. Further information regarding the important
factors that could cause actual results to differ from projected
results can be found in Triumph Group's reports filed with the SEC,
including our Annual Report on Form 10-K for the fiscal year ended
March 31, 2019. The Company
undertakes no obligation to update any such forward-looking
statement.
Widespread health developments, including the recent global
coronavirus (COVID-19), and the responses thereto (such as
voluntary and in some cases, mandatory quarantines as well as shut
downs and other restrictions on travel and commercial, social and
other activities) could adversely and materially affect, among
other things, the economic and financial markets and labor
resources of the countries in which we operate, our manufacturing
and supply chain operations, commercial operations and sales force,
administrative personnel, third-party service providers, business
partners and customers and the demand for our products, which could
result in a material adverse effect on our business, financial
conditions and results of operations.
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SOURCE Triumph Group