Covid-19: Astronics provide updates on operational status and actions

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Advanced technologies provider Astronics has announced updates on actions taken to reduce the impact of the coronavirus (Covid-19) on its operations.

The company has suspended its recruitment drive, terminated all wage adjustments and bonus programmes, and modified the number of employees in line with demand.

It has also withdrawn $150m from its existing credit line to boost cash on hand and is in discussions to adjust its loan agreement, if possible.

In addition to these, Astronics is reducing its planned capital expenditures from previous expectations of $22m to $25m. They are now expected to be less than $10m for the rest of the fiscal year 2020.

The company also expects the overhead and labour costs this year to minimise by approximately $55m to $60m beginning in the second quarter.

Astronics chairman and CEO Peter Gundermann said: “This is an unprecedented situation in our industry, and we have to take measurable actions. First and foremost is the safety of our team members.

“We have implemented enhanced cleaning protocols, increased spacing of workstations, work-from-home wherever possible, minimisation of visitors, meetings and travel as well as emphasising the importance of personal hygiene and responsibility.

“These actions will be difficult for our company and our employees, but they are necessary in the face of the Covid-19 threat.”

Meanwhile, Astronics will continuously monitor the evolution of the situation and provide further updates.

The number of infected people from Covid-19 has reached 736,944 globally, while the death toll of the outbreak has exceeded 35,000.