Delta-based Avcorp Industries Inc. (TSX:AVP) is cutting approximately 100 jobs, or about 12% of its workforce due to a softening order book and rate reductions from its major customers.
Management, staff and union employees will all be affected by the employee cuts at the airframe manufacturer. The company will take a $350,000 charge against last quarter's financials and a further $400,000 will be charged in the current quarter.
As part of its cost cutting measures, the company has also elected to cancel bonuses paid for 2008 and 2009 and is freezing management and staff salaries for the year.
The company reported a net loss of $279,000 for the nine month period ending September 30, 2008 compared to a net profit of $1.2 million in the same period in 2007. The decline was due to a one-time $759,000 asset writedown relating to its investment in Eclipse Aviation Corporation. Revenue for the period, however, rose to $94.4 million from $83.4 million.
Avcorp's share price range during the past week: between $0.38 and $0.65; 52-week high: $1.25; 52-week low: $0.25.