Company seems to have confirmed inefficiencies
Wednesday October 1 5:06 PM EDT
Simula says growth led to inefficiencies
PHOENIX, Oct 1 (Reuter) - Simula Inc said in a news release on Wednesday that faster than anticipated growth
in its airliner seating operations resulted in inefficiencies and cost increases.
Simula also said it delayed the start of production on certain existing programs within its government operations
to sometime in 1998 from late 1997. But the airline seating market is making up some of the resulting government
sector revenue shortfall.
``Our people have responded well in meeting the demand, but at a cost due to the inefficiencies inherent in such
a rapid build-up in production rate,'' said Don Townsend, president of Simula. ``We are now focusing,
throughout our corporation, on streamlining operations and raising production efficiencies through continuous
improvement efforts.''
In addition, Simula said it received about $43 million in new firm orders and options in its third quarter ended
September 30 for a variety of its products. The third quarter orders and options bring the total of orders and
options received this year to about $134 million.
The company said new business includes firm orders and options of about $14 million for its AI-1000 (coach
class) and AI-2000 (business class) commercial airliner seats.
Firm orders and options received year to date for these seating systems now total some $48 million.
In addition, orders received in the third quarter for continued production of its ITS automotive side impact head
protection product are valued at about $4.5 million and new firm orders and options received in the government
products business this quarter totaled some $20 million.
Simula, based in Phoenix, makes crash safety and energy absorbing products. |
