Woodward incurs $17M charge for relocation of California plant to Fort Collins

FORT COLLINS — Woodward Inc. (Nasdaq: WWD) on Monday announced that it has recorded a $17 million charge related to relocation of a facility from Duarte, Calif., to the company’s Drake Road campus in Fort Collins.

Woodward announced in February that it would relocate an operation in Duarte that manufactures thrust reverser actuation systems and is part of Woodward’s Airframe Systems business group. Woodward designs and manufactures components for the aerospace and industrial markets. The relocation to the company’s recently renovated 250,000-square-foot former headquarters and manufacturing facility at Drake Road and Lemay Avenue will bring 300 additional jobs to Fort Collins.

The company said in a prepared statement that “the Duarte facility is unable to support the significant amount of new business recently awarded, including a major thrust reverser actuation system contract with Airbus.”

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Included in the $17 million charge is $12.5 million related to workforce-management costs associated with the relocation. “Woodward anticipates incurring certain move related costs such as expenses associated with moving equipment, employee training, accelerated depreciation, and increased labor expenses over the coming year,” the company said.

Woodward will maintain an engineering center in Duarte but said it is “exploring various options with respect to the Duarte property and believes that a gain will be realized upon its disposition, which is anticipated to offset the specific charges and other costs associated with the Duarte relocation.”