TransDigm Expects COVID-19 Pandemic To Adversely Impact Remainder Of FY20

(RTTNews) - While reporting its second-quarter financial results on Tuesday, TransDigm Group Inc. (TDG) said it currently expects the COVID-19 pandemic to have a significant adverse impact on its sales, EBITDA and net income for the remainder of fiscal 2020.

The company assumes that the COVID-19 pandemic will adversely affect its non-defense customers and their demand for its products and services.

In the near term, the outbreak and worsening of the COVID-19 pandemic will adversely impact TransDigm's commercial aftermarket sales. The company also believes that the COVID-19 pandemic will also adversely impact its commercial OEM sales over the long term.

As the duration and severity of the outbreak are uncertain at this time, TransDigm said it is difficult to forecast any precise impact on its future results.

TransDigm noted that as of March 28, 2020, it saw a modest adverse impact to its commercial aftermarket and OEM sales from the COVID-19 pandemic as approximately the last three weeks of its second quarter were negatively impacted.

On April 2, 2020, TransDigm withdrew its previously provided financial guidance for the fiscal year ending September 30, 2020, due to the unprecedented uncertainty around the ultimate impact of COVID-19 on global market and economic conditions.