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WESTMINSTER — Just days after it told investors it wasn’t yet affected by the spread of the COVID-19 virus, satellite maker Maxar Technologies Inc. (NYSE/TSX: MAXR) said it would claim “force majeure” to delay certain contract fulfillments.
Westminster-based Maxar said its plants in Palo Alto and San Jose were closed this week in response to stay-home orders from local health officials, but the company now believes it is exempt due to the nature of the work and restarted assembly with limited staff Friday.
Those public health orders, along with “observing stress” within the company’s larger supply chain, is forcing Maxar to tell customers it would be late on delivering on contracts, according to a disclosure filed to the U.S. Securities and Exchange Commission.
The company said last Wednesday it had yet to see any major impacts to its supply chain or revenue streams due to the novel coronavirus spread.
The company said none of its staff have been diagnosed with the COVID-19 virus as of Friday morning, but all employees are now working from home except for workers in critical assembly positions.
Maxar is now assessing the wider effects of the global COVID-19 outbreak on its entire business and supply chain, “all of which to some extent will affect future revenue, earnings, and cash flow,” it said.
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