Héroux-Devtek Inc. set to cut 90 jobs
LONGUEUIL, QUE. — Héroux-Devtek Inc. says it will be cutting 90 employees from its workforce by the end of 2017 because some customers have announced reductions to the production rates for certain aircraft programs.
The Montreal-based aerospace company, which makes landing gear for Boeing, Airbus and other aircraft manufacturers, said Tuesday the job cuts would be throughout its offices and plants but didn’t provide any other details.
Héroux-Devtek operates plants in Cambridge and Kitchener.
It opened a plant on Boxwood Drive that makes landing gear systems for Boeing B-777 and B-777X jets in June 2015. Its plant on Highland Road West makes medium- to large-size landing gear components.
At the time the Cambridge plant was opening, the company said it employed 250 people in Ontario, most of them in Waterloo Region.
According to regulatory documents filed last year, Héroux-Devtek employed about 1,400 people in Canada and the United States. Its head office is in Longueuil, Que., a suburb of Montreal.
“In response to evolving market conditions, Héroux-Devtek is acting diligently by adjusting its workforce, while remaining in close contact with its customers to monitor the situation,” chief executive Gilles Labbé said in a news release. “We regret the consequences of this decision on affected employees and their families and we will take equitable measures to provide them with all the support they deserve.”
The announcement about the job cuts was included with Héroux-Devtek’s third-quarter financial results.
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, HérouxDevtek had $98.5 million in 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.