MorrisAnderson Quick Turnaround Actions Save Company

Aerospace & DefenseLitigation SupportPerformance ImprovementTurnarounds & Restructuring

50M

Annual Sales

15M

in Debt

Ayres, Albany Georgia

Challenge

$50 million manufacturer  of crop duster aircraft and aircraft component parts was $15 million debt and owned by strong-willed entrepreneur.

  • Company was losing $10 million annually
  • Significant cash was being spent on R&D for potential new programs
  • Workforce of 500 was significantly overstaffed and Company had 11 VP’s
  • Serious cash issues
  • Serious quality and delivery performance issues

Solution

  • MorrisAnderson appointed as COO with authority to reorganize company
  • Terminated 4 VP’s and  laid-off over 20% of workforce
  • Cut back R&D to affordable levels
  • Communicated turnaround plan to all employees via town hall meetings
  • Focused management team on quality and delivery issues

Results

  • Company operated at over breakeven within 2 months
  • Quality and delivery issues were significantly improved
  • Positive cash flow improved relations with lender and key suppliers

Contributors