Aerospace component manufacturers B/E Aerospace and Goodrich have revealed how much recent job cuts and factory closures have cost them (Flight International, 30 October - 5 November 2001). But despite the deepening downturn, both issued predictions of better times to come.
Aircraft interiors manufacturer B/E Aerospace announced that the consolidation programme had cost it around $100 million, bringing it heavily into the red in the third quarter of 2001, ending 24 November.
Excluding the costs of cutting 1,000 jobs - 20% of its workforce - and closing five of its 11 plants, the company actually made a small profit of $500,000. It expects sales of $700 million for the full 2001-2 financial year, which ends in February, falling to $650 million in 2002-3.
Profits for the full year have been obliterated by the slowdown and the company expects only to break even, before the $100 million cost of "consolidation" is taken into account. While next year should bring in earnings of $27 million ($15 million after consolidation costs), most will be made in the second half of the year, as the savings made through consolidation begin to come in.
Meanwhile, undercarriage specialist Goodrich has also been hit hard by its restructuring programme.
The company's forecast earnings for 2001 have been slashed from $310 million to only $80 million by the $230 million cost of cutting 2,400 jobs - around 10% of the workforce - and closing 16 plants between now and March. The closure costs will continue into the first half of 2002.
Source: Flight International
