Héroux-Devtek to cut 90 jobs due to drop in market demand
The Canadian PressGeneral Aerospace Heroux-Devtek job cuts
The Montreal-area aerospace company said the job cuts would be throughout its offices and plants but didn't provide any other details.
LONGUEUIL, Que. — Héroux-Devtek Inc. says that due to slowing demands, it plans to cut 90 employees from its workforce by the end of 2017. The announcement comes as some customers announced reductions to the production rates for certain aircraft programs.
The news by the Montreal-area aerospace company, which makes landing gear for Boeing, Airbus and other aircraft manufacturers, was included with Héroux-Devtek’s third-quarter financial results issued Tuesday.
Héroux-Devtek said the job cuts would be throughout its offices and plants but didn’t provide any other details.
According to regulatory documents filed last year, the company employed about 1,400 people in Canada and the United States. Its head office is in Longueuil, Que., a suburb of Montreal.
The company estimated the workforce reduction will result in a $4.8 million expense to be recorded in the company’s 2017 fiscal fourth quarter, which ends March 31.
In its third quarter ended Dec. 31, the aerospace giant had $98.5 million of sales, up from $96.6 million a year earlier. Net income rose to $8.2 million or 23 cents per share, from $7 million or 19 cents per share.
On an adjusted basis, Héroux-Devtek earned $6 million or 17 cents per share in the third quarter, down from $7.0 million or 19 cents per share.