NASCAR RETURN HAS PWR ON GRID
ORMEAU-BASED PWR Holdings – which makes cooling systems for the fastest vehicles on Earth – has received a welcome boost with news NASCAR will resume later this month.
PWR is a key supplier to NASCAR through its US division C & R based in Indianapolis.
On May 17, NASCAR will be the first major US sport to restart its season during the coronavirus pandemic. Formula One has indicated it plans to have its first race in Austria on July 5.
Managing director Kees Weel said the NASCAR news was a “very promising” development.
“We are going to go from nothing to being extremely busy come June and July,” he said.
PWR was forced by the State of Indiana into a twoweek shutdown of its Indianopolis factory in late March. Operations have since resumed with skeleton staff and the company says activities are gradually returning to normal.
In addition the company has secured $US1.175 million ($1.83 million) from the US Government to cover costs during the pandemic.
“That was in the bank last week,” Mr Weel said.
“It is a forgivable loan as long as we spend that on wages for the next eight weeks.”
In Australia PWR has moved staff to four-day weeks and says it is not in a position to provide guidance for its full-year results.
However, the company has been able to move staff on to the Federal Government’s JobKeeper wage subsidy and says it maintains a strong balance sheet with the addition of a $10 million working capital facility if required.
The company says it also remains committed to capital expenditure to support growth in emerging technologies, aerospace and defence through acquiring new technology.
“We have been training and upskilling staff so when the gates open we are ready to go,” Mr Weel said.
“It is always a bit of a cat and mouse thing. If you don’t prepare and you are caught with your pants down that is no good either.
“They (staff) are very understanding but mind you a lot of them are having a break because we have always been so busy.”
In the first half of the financial year PWR reported motorsports provided 54 per cent of revenue.
About 15 per cent comes from the US operation.
Shares this morning rose 1.35 per cent to $3.74.