The company reported Tuesday an earnings loss of
When excluding the goodwill and the one-time charges,
The average earning forecast was
Furloughs for salaried employees began
Hayes told analysts Tuesday that "we're also taking a hard look at the businesses given the environment and the prolonged recovery, and we're going to take additional actions as we think are appropriate."
Hayes said that "I think it's important to note, the commercial aerospace reduced to about 8,000 positions. Some of those will come back with volume. Some of them will be permanently reduced."
"We will be nimble. We're going to remain focused on what we can control and we're going to adapt to the current environment and position our commercial aero businesses for growth, while also maintaining solid growth on the defense portfolio.
"Overall, the opportunities and furloughs remain significant."
A company typically writes down its goodwill when the value of certain assets declines.
Also contributing to the earnings loss was a
The surviving company chose to use
There also was a
Sales rose by 24.1% to
Collins' revenue dropped 36.1% to
UTC acquired two primary business divisions from
However, overall cost of sales jumped 42.8% to
"Looking ahead, we expect the pressures in commercial aerospace to persist as original equipment manufacturing production levels and aftermarket activity remain low," Hayes said. "As a result, we are taking difficult but necessary actions to strengthen the business, including achieving the previously announced cost and cash savings this year."
Additional actions at that time included: "significant reduction" in capital investment in buildings and facilities, excluding safety-related investments; and deferral of annual merit increases for executive and salaried employees.
"The key is we don't want to cut the talent so deep that when the recovery happens, we don't have the right people. So we're trying to be judicious. We're trying to keep as many jobs as we can," Hayes said.
Hayes told analysts Tuesday that "the effects of the pandemic on the economy and commercial aerospace has proven to be a lot worse than what we originally projected even a few months ago."
"For that reason, we now would expect it will take at least until 2023 for commercial air traffic to recover to 2019 levels."