Triumph Group, Inc., an aerospace design and manufacturing firm based in Berwyn, Pa., announced the impact of the coronavirus outbreak and the steps the company is taking to mitigate it.
“The safety and economic well-being of our employees and the communities we serve remain top priorities for the company,” Triumph Group President and CEO Daniel J. Crowley said. “Given the dramatic and sudden impact of the virus on the world and on the aviation industry we support, we must take immediate and painful actions to protect our people and preserve our company so that we can survive and be well-positioned for the recovery.”
As of Tuesday’s announcement, all Triumph factories will remain operational, with the company complying with the state-mandated closure of non-essential operations.
Triumph will also evaluate its employee proceedings based on the two-week closure of Boeing’s Washington state factories. Company officials said they will look into the need to furlough employees working at Triumph plants where capacity is largely dedicated to Boeing Commercial Aircraft programs.
Senior executives will forgo 10 percent of their base salaries starting April 1, and Triumph’s Board of Directors elected to reduce their cash compensation during the crisis by 25 percent.
Triumph stated that due to the COVID-19 impact roughly 250 full-time salaried employee and 250 contractor positions will be eliminated. At the same time, the company did announce plans to implement furloughs for certain salaried employees of two weeks over their fiscal year 2021 to minimize labor force reductions as much as possible.
“I want to thank the 10,000 men and women of Triumph Group for their efforts to limit the spread of the virus and to keep our plants running so that our customers’ critical missions are sustained for the benefit of all,” Crowley said.
On March 20, Triumph filed Form 8-K with the Securities and Exchange Commission, suspending payment of a dividend to conserve cash for operational use. The company currently has cash of approximately $400 million and more than $100 million of availability to support its working capital requirements.