Astronics Corporation, a provider of advanced technologies for global aerospace, defense, and other mission-critical industries, has provided an update on various projects and events impacting 2019 results and expectations for 2020.
The Company ended 2019 with un-audited preliminary revenue of approximately US$198 million in the fourth quarter, slightly exceeding the high end of guidance that was issued on November 5, 2019. Preliminary bookings were US$156 million in the fourth quarter and preliminary backlog at year-end was US$359 million. Bookings were negatively impacted by uncertainty in the market, which the Company believes is related to the ongoing 737 MAX grounding. In addition, the Company cancelled orders of approximately US$7 million related to the restructuring and refocusing of its antenna business. Un-audited preliminary revenue for the full year totaled approximately US$773 million.
Given the uncertain 2020 production schedule for the 737 MAX and timing of its return to service, along with the related impact on aftermarket spending by commercial airlines, the Company is rescinding its initial 2020 revenue guidance issued in November 2019. Astronics expects to issue revised revenue guidance as the outlook becomes clearer.
Peter Gundermann, Astronics Chairman and CEO, said, “The ongoing 737 MAX grounding affects our business both because of the production pause and because it leaves many of our airline customers short of capacity. This makes them reluctant to take planes out of service to install the types of products they buy from us. The situation is likely to persist until the 737 MAX returns to service. We will publish revenue expectations when we have more insight on the situation. In the meantime, we have taken actions to align our cost structure, anticipating a lower level of production and an extended disruption in the market.”
Astronics has line fit content of approximately US$95,000 on each 737 MAX as well as buyer-furnished equipment, such as passenger power and connectivity hardware, that varies depending on aircraft configuration.
