Heroux-Devtek takes $7.9M charge after Learjet ‘pause’
Quebec manufacturer is one of many that will feel the pain from Bombardier's move to halt Learjet 85 production
LONGUEUIL, Que.—Aerospace products maker Heroux-Devtek Inc. will record a charge of $7.9 million before taxes as a result of Bombardier Inc.’s “pause” on manufacturing it’s Learjet 85 business jet.
The non-cash and non-recurring charge is equivalent to $5.8 million after taxes, and will be applied in its financial results for the third-quarter ended Dec. 31, 2014. These results will be released on Feb. 5, 2015.
Heroux-Devtek is the developer and supplier of the complete landing gear system for the aircraft.
“This charge represents the impairment of capitalized development costs on the Learjet 85 business aircraft program and follows the announcement by Bombardier Inc. on January 15, 2015 to pause the Learjet 85 program due to ‘the continued weakness of the Light business aircraft category since the economic downturn and the downward revision of Bombardier’s business aircraft market forecast’,” said Heroux-Devtek in a release
Heroux-Devtek is a Canadian company that designs, develops, manufactures and repairs landing gear and actuation systems and components for the Aerospace market.