Astronics has reported financial results for the three and twelve months ended 31 December 2020.
Fourth quarter revenue was US$114.8 million, down 42.1% from the comparator period of 2019, but up 7.8% sequentially from the third quarter. The Company incurred a pre-tax loss of $7.5 million.
Revenue in 2020 was $502.6 million, down 35% compared with 2019 as a direct result of the global pandemic. Net loss for the year was $115.8 million.
Commercial aerospace was about $263 million of 2020 revenue, or 52% of total revenue, down nearly 50%. 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.
The company also reported that general aviation demand contracted about 11% to approximately $60 million, or 12% of revenue. Most of Astronics’ general aviation revenue is line fit driven by the manufacture of new aircraft, although there is some amount of aftermarket business as well. New build rates for business jet aircraft are expected to improve in 2021 from current levels.
Referencing the recertification of the 737 MAX, CEO Peter J. Gundermann commented: “Back in 2019, before the pandemic, it was our single largest aircraft production program across our entire company, for which we provide a minimum of $90,000 per aircraft built. And depending on how it’s configured, that total can increase up to $250,000 or so. We do not expect much impact from that recertification in the first half of the year as Boeing is building at a rather low rate and they are going to burn off inventory that accumulated when the production shut down almost a year ago. But we expect in the second half that, that will start to have a meaningful impact on our financials. And if Boeing hits their production – anticipated production rates going into 2022, it should again be one of our larger programs across our company.”
Before the pandemic, the business jet market was about 10% of the company’s volume. Gundermann is optimistic that the publicly announced intention to increase production rates by OEMs should help its line fit activity.