Triumph Group, Inc. (NYSE: TGI) has announced an update on steps the company is taking to mitigate the current impact of the coronavirus (COVID-19), the company said.
The Company is expanding its actions to limit the spread of COVID-19 consistent with US and international government safeguards.
Although the situation remains fluid, all factories remain operational. Triumph is complying with all mandates for closure of non-essential operations. Triumph will adjust its plans as government decisions and Company policies evolve.
Given Boeing´s plans to close their Washington state factories for 14 days, Triumph will evaluate the need to furlough employees at a subset of Triumph plants where capacity is largely dedicated to Boeing Commercial Aircraft programs.
Regarding the Company´s plans to respond to the COVID-19 crisis, and to conserve cash and maintain long-term competitiveness, the following actions are underway:
-Approximately 250 full-time salaried employee and 250 contractor positions will be eliminated.
-The Company will implement furloughs for certain salaried employees of two weeks over fiscal 2021 to minimize reductions in force.
-Triumph will suspend merit pay increases for all team members until the crisis has passed while forgoing management increases for one year.
-Senior executives, including the CEO and direct reports, will forgo 10 percent of their base salaries starting April 1, 2020 during the crisis.
-Triumph´s Board of Directors has elected to reduce their cash compensation during the crisis by 25 percent.
Triumph disclosed it would suspend payment of a dividend for the foreseeable future to conserve cash for operational use. As a result of Triumph´s decision to draw down its revolving credit facility as disclosed on March 19, 2020, the Company has cash of approximately USD 400 million and over USD 100 million of availability to support its working capital requirements.
Triumph Group, Inc., headquartered in Berwyn, Pennsylvania, designs, engineers, manufactures, repairs and overhauls a broad portfolio of aerospace and defense systems, components and structures.