CIRCOR Provides COVID-19 Related Business Update
21 April 2020 - 9:00PM
Business Wire
CIRCOR International, Inc. (NYSE: CIR), a leading provider of
severe service flow control solutions and other highly engineered
products for the Industrial and Aerospace & Defense markets,
today announced a business update in response to the evolving
COVID-19 pandemic.
“In this time of unprecedented uncertainty resulting from the
COVID-19 pandemic, our top priority remains the health and safety
of our employees, customers and suppliers,” said Scott Buckhout,
President and Chief Executive Officer of CIRCOR International.
“Because of the end markets we serve, the majority of our
facilities are deemed ‘essential operations’ in the countries in
which we operate, and as a result, 23 out of 25 production and
service/assembly facilities are in operation. Over the last several
weeks, we have implemented significant measures in an effort to
ensure our factory employees around the world have the necessary
protection and our business continues to operate with as little
disruption as possible.
“In addition to operational measures, we are taking prudent
steps to maintain our financial flexibility and position us to
weather future volatility. On March 20, 2020, out of an abundance
of caution, we proactively drew down $80 million on our line of
credit under our existing Credit Agreement, bringing the Company’s
available cash on hand to approximately $171 million at the end of
March. We are confident that our strong balance sheet positions us
well to navigate this crisis while continuing to meet the needs of
our customers.”
Business Operations
CIRCOR has assembled a cross-functional Pandemic Response and
Preparedness Team at the corporate level and has dedicated response
teams across its business lines and sites that meet daily to
address the challenges the virus poses to employee health and
safety, as well as business continuity.
Due to the end markets it serves, CIRCOR has been deemed an
essential business by the U.S. Government and all of its plants,
except for those located in India, are currently open and
operational. To that end, since the beginning of the crisis, the
Company has taken a number of steps designed to protect the health
and safety of all employees who work at its facilities,
including:
- Additional cleaning and disinfecting procedures at all
facilities;
- Daily temperature checks and masks for employees;
- Adherence to strict social distancing guidelines;
- Mandatory work from home policy where possible; and
- Cancellation of all non-essential travel.
Cost Containment and Financial Management
Since the beginning of the COVID-19 crisis, CIRCOR has taken
prudent action to ensure it maintains its financial flexibility,
including:
- Eliminating all non-critical business expenses;
- Furloughs; and
- Pay cuts for leadership.
The Company continues to evaluate further actions as market
demand continues to shift.
2020 Outlook Update
Given the rapidly changing environment and uncertainty in the
outlook as a result of the COVID-19 pandemic, CIRCOR is withdrawing
its previously disclosed financial guidance for Q1 & full year
2020.
Community Impact
CIRCOR teams across the globe are coming together to support the
global fight against the pandemic. The Company retrofitted one of
its factories to produce a key product for a major ventilator
manufacturer, with production lines now operating 24 hours per day.
CIRCOR’s engineering team worked around the clock and was able to
adapt one of its products for the ventilator application in less
than 10 days. The Company expects to produce nearly 10,000 units
during Q2.
Additionally, the CIRCOR Naval Solutions team in Warren, MA has
been hard at work over the past three weeks producing urgent pump
parts for the U.S. Navy Hospital Ships USNS Comfort and Mercy that
have been dispatched to NYC and Los Angeles to support the COVID-19
response. The CIRCOR team has tackled these critical needs with the
utmost urgency, producing components in record time to help keep
the U.S. Navy ships up and running for their critical missions.
CIRCOR is also working with a large medical device customer to
find ways for the Company’s products to support the development of
COVID-19 antibodies from recovered patients. And, a number of the
Company’s locations around the world have donated masks, sanitizer,
and other safety equipment to local hospitals.
"I want to thank the entire CIRCOR team for their service and
unwavering dedication to our customers in this rapidly changing
environment. They have been doing a great job in supporting one
another and working to help mitigate the risk of this virus,”
Buckhout concluded.
SAFE HARBOR STATEMENT
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Reliance should not be placed on forward-looking
statements because they involve unknown risks, uncertainties and
other factors, which are, in some cases, beyond the control of
CIRCOR. Any statements in this press release that are not
statements of historical fact are forward-looking statements,
including, but not limited to, our ability to maintain financial
flexibility and business continuity, our ability to identify
further mitigating actions as market demand shifts, and
expectations about production activities in support of the global
fight against the COVID-19 pandemic. Actual events, performance or
results could differ materially from the anticipated events,
performance or results expressed or implied by such forward-looking
statements. Important factors that could cause actual results to
vary from expectations include, but are not limited to: the
duration and severity of the COVID-19 pandemic and its impact on
the global economy; our ability to respond to competitive
developments and to grow our business, both domestically and
internationally; changes in the cost, quality or supply of raw
materials; our ability to comply with our debt obligations; our
ability to successfully implement our acquisition, divesture or
restructuring strategies; changes in industry standards or
government regulations, both in the United States and
internationally; and our ability to efficiently operate our
manufacturing facilities and respond to increases in manufacturing
costs. BEFORE MAKING ANY INVESTMENT DECISIONS REGARDING OUR
COMPANY, WE STRONGLY ADVISE YOU TO READ THE SECTION ENTITLED "RISK
FACTORS" IN OUR MOST RECENT ANNUAL REPORT ON FORM 10-K AND
SUBSEQUENT QUARTERLY REPORTS ON FORM 10-Q, WHICH CAN BE ACCESSED
UNDER THE "INVESTORS" LINK OF OUR WEBSITE AT WWW.CIRCOR.COM. We
undertake no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.
ABOUT CIRCOR INTERNATIONAL, INC.
CIRCOR International, Inc. designs, manufactures and markets
differentiated technology products and sub-systems for markets
including Industrial and Aerospace & Defense. CIRCOR has a
diversified flow and motion control product portfolio with
recognized, market-leading brands that fulfill its customers’
mission critical needs. For more information, visit the Company’s
investor relations website at http://investors.circor.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20200421005248/en/
Abhi Khandelwal Chief Financial Officer CIRCOR International
(781) 270-1200
CIRCOR (NYSE:CIR)
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