Aerospace firm ‘reviewing all operations’ as demand slumps
AGLOBAL aerospace firm that employs hundreds of workers in the UK is “reviewing all operations” due to the coronavirus pandemic’s impact on the aviation sector.
Magellan Aerospace is a major Airbus supplier, with UK sites in Wrexham, Deeside, Blackpool, Bournemouth and Greyabbey in Northern Ireland.
The Canadian-headquartered firm yesterday reported its first-quarter revenues and its outlook for the remainder of the year.
The corporation reported revenue in the first quarter of 2020 of $238.9m, a $31m decrease from the first quarter of 2019 revenue of $269.9m.
Gross profit and net income for the first quarter of 2020 were $36.8m and $20.1m, respectively, in comparison to gross profit of $42.8m and net income of $20.4m for the first quarter of 2019.
It warned about the future impact of Covid-19.
This comes as Airbus has furloughed 3,200 workers at its Broughton plant in north Wales as production levels are reduced.
A statement from Magellan said: “Air travel has not experienced such a significant decline in its passenger volumes as it has witnessed year to date in 2020 since 9/11.
“It is reported that 66% of the global commercial aircraft fleet, approximately 19,350 aircraft, have been grounded by airlines while the world attempts to slow the spread of the Covid-19 outbreak.
“Various original equipment manufacturers (OEMs) and supply chain companies temporarily suspended manufacturing operations due to the pandemic, some of whom have since restarted or are about to restart manufacturing with reduced workforces.
“The greatest impact of Covid-19 on the aerospace market is expected to be on commercial aircraft programmes.
“Airlines have already begun deferring new aircraft orders and announcing fleet reductions through early retirements of older aircraft. There have also been some new order cancelations.”
It added: “The corporation will continue to closely monitor the Covid-19 situation and reassess its operating plan as programme updates become available.
“Due to the ongoing Covid-19 pandemic and the impact it is having on the commercial aerospace market and associated lower aircraft demand and production rates, Magellan is reviewing all its operations and implementing cost-reduction initiatives and production efficiencies to ensure that our plants remain competitive.”
It stated: “The corporation remains committed to preventing the spread of the virus, providing a safe environment for our workforce, and in the process, protecting the continuity of our business.”