TransDigm's defence revenue hurt by ‘safety incident'
An unspecified “safety incident” at Armtec Defense Technologies has forced the business to temporarily halt production at one of its facilities, according to officials at US-based parent company TransDigm Group.
US-based TransDigm saw its revenue shrink in its most recent quarter. (Credit: Getty Images)
The facility is reworking some of its manufacturing processes so it can resume production, TransDigm CEO Kevin Stein said.
“This has been a headache for us, but the team is working through it,” Stein told analysts this month.
TransDigm officials did not elaborate on the nature, location, or timing of the incident. Attempts to reach TransDigm and Armtec for comment were not immediately successful.
Armtec makes countermeasure chaffs and flares and artillery ammunition. It has factories in Arkansas, California, and North Carolina.
The production shutdown contributed to a 12% drop in TransDigm’s defence revenue in the third quarter of fiscal year 2020, the company said. The decrease was also fuelled by delays in international parachute sales for TransDigm’s Airborne Systems business.
Defence typically accounts for about 35% of TransDigm’s total revenue.
TransDigm officials said they expect defence to rebound in the fourth quarter due to a strong backlog.
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