SATS announces more pay cuts; warns of impact to Q4, FY results

[The_King]

SINGAPORE — SATS Ltd. announced more pay cuts and warns its revenue and profitability will be adversely impacted by the COVID-19 spread.

SATS said its president and chief executive Alex Hungate will take a 15 per cent pay cut with effect from 1 March, according to a exchange statement on Monday (9 March).

Non-executive directors' fees were also cut by 15 per cent, the airport and food services provider said. Executive vice-presidents and senior vice-presidents saw a 12 per cent pay cut, while vice-presidents took a 10 per cent cut.

In addition, from 1 April, managers to assistant vice-presidents will take a 5 per cent pay cut.

The company, which counts Temasek as its biggest shareholder, last month announced that the management team were taking a 10 per cent pay cut as part of cost-saving measures.

SATS said the rapid spread of the COVID-19 virus to Europe and America over the past weeks has led to a significant drop in demand for air travel globally, resulting in a reduction in revenue for the company across all markets.

“We expect this reduction to substantially and adversely affect profitability for the quarter and the full year when compared to the respective corresponding periods last year,” it said in the statement today.

The company said it will provide more details of its financial results when the unaudited financial statements for the fourth quarter and full year ending 31 March 2020 are completed and available.

SATS said that despite a negative hit to its short-term earnings from the outbreak, it is in a strong position to weather the disruptions. It added that it was "looking out for opportunities" in this crisis. The company on 2 March said it acquired UK-based aviation food solutions company Monty's Bakehouse UK for 26.7 million pounds (S$48.4 million). 

Singapore confirmed 12 new COVID-19 cases on 8 March for a total of 150 cases. The coronavirus has spread to about half of the world’s countries with over 108,000 cases, with fatalities reaching 3,800 and infections in Italy eclipsing those in South Korea.

 

https://sg.finance.yahoo.com/news/sats-announce-more-pay-cuts-warns-of-impact-to-q-4-fy-results-043629603.html