1st Quarter 2020 statement by President and CEO:
“We achieved solid first quarter results despite a significant deterioration in market conditions late in the quarter. This performance, along with our solid cash and liquidity positions, provide a strong foundation to respond to the economic challenges created by the COVID-19 pandemic. Our focus on safety, coupled with our team’s extraordinary support for each other’s health and welfare, have allowed us to maintain on-time delivery of the mission-critical parts and materials our customers need,” said Robert S. Wetherbee, President and CEO. “Thanks to close collaboration with our customers, we are adjusting our production to match the rapidly changing end-market demand requirements.”
At the start of 2020, ATI realigned its business segments to streamline operations and unlock synergies, proactively implementing workforce reduction initiatives in the fourth quarter 2019 and again in the first quarter 2020. The Company's approach to cost reductions is to align cost structures to demand levels and the efficient delivery of products to customers. The impact of COVID-19 has tested this cost reduction strategy and the process is performing very well, including delivering $115 million to $135 million of incremental cost reductions in 2020. To further mitigate the financial impact from reduced aerospace and consumer demand levels stemming from the COVID-19 pandemic, the company has expanded these cost reduction efforts to include the temporary idling of operations to reduce costs and inventory, reductions in base compensation for U.S. salaried employees, including a 20% reduction for executive leadership team members, reductions in non-employee Director compensation, reductions in and/or deferrals of 401(k) benefits for a substantial portion of our employees, furlough of non-essential positions, and significant reductions in capital expenditures and corporate expenses. The company will continue to evaluate its demand levels and operating rates and may take additional actions as warranted. “Beyond our cost mitigation actions and consistent with our strategy, we remain committed to maintaining a strong balance sheet, one with ample cash and liquidity and no near-term debt maturities," said Wetherbee.
"We've led through difficult times before. While these current challenges are unprecedented, we have an experienced leadership team that understands the need for quick and decisive actions to transform the business and I am confident that we will emerge a stronger company," Wetherbee said.
Those who are secure and comfortable in their own skin do not have a need to control others. Always check the sources and triple-check the sorcerers who put out their "facts" being sprinkled about.
