Astronics Corporation’s fourth quarter revenue was $114.8 million, down 42.1 per cent from 2019 it revealed.
However, it was a 7.8 per cent improvement sequentially from the third quarter.
The supplier of advanced technologies and products to the global aerospace, defence and other mission critical industries, reported financial results for the three and twelve months ended December 31, 2020.
According to the results, it incurred a pre-tax loss of $7.5 million with a net loss of $20.0 million included a $14.1 million non-cash tax expense reflecting a reserve recorded against its deferred tax assets.
Revenue in 2020 was $502.6 million, down 35 per cent compared with 2019 as a direct result of the global pandemic.
Net loss for the year was $115.8 million while Adjusted EBITDA was $28.8 million as the company rapidly adjusted to the new environment by aggressively adjusting its cost structure to changes in demand.
As a result of the year, it evaluates three revenue streams to monitor demand and analyse the impact of the pandemic to its business. These are the commercial aircraft market, which includes OEM line fit and airline aftermarket business, defence and other government markets, and general aviation.
Astronics’ president and chief executive officer, Peter J. Gundermann, said: “Even while the commercial aerospace industry continues to be challenged, there was some good news in the quarter.
Perhaps the best news from the quarter was the initial approval of multiple effective Covid-19 vaccines, which we expect will result in increased demand for air travel later in 2021. To this end, we are seeing positive signs that demand is picking up in our aerospace business, though conditions currently remain depressed. In the meantime, we are carefully managing our cost structure, pursuing new opportunities and advancing development programs for our customers.”
It said that commercial aerospace has been heavily impacted by the pandemic and was about $263 million of 2020 revenue, or 52 per cent of total revenue, down nearly 50 per cent.
Aircraft build rates are expected to improve modestly during 2021 from current levels as production of the 737 MAX picks up. The aftermarket is expected to strengthen over the course of the year as aircraft utilisation and load factors increase.
Gundermann added: “We are glad to put 2020 behind us. The pandemic hit our core aerospace business hard early in the year, but our team demonstrated resilience and flexibility in the midst of very trying times. We enacted protocols to protect our employees and dramatically reduced our cost structure. Though we continue to be heavily impacted by difficult conditions in the commercial aerospace industry, we are prepared for the recovery and look forward to improved market conditions as the vaccines take hold and demand returns to our industry.”