Butler National Corporation Aims to Reduce Costs

Butler National Corporation  a provider of structural modification, maintenance, repair and overhaul (MRO) and a recognized provider of management services in diverse business groups, announced last month it is in the process of implementing an aerospace segment cost reduction plan.

The Butler National cost reduction plan is to align overall expenses with the current level of revenue in the aerospace business segment.  The plan includes reductions in staffing levels and reductions of top-level management compensation.

“The past twelve months has been a difficult period for our aerospace business segment.  We have taken significant steps to reduce overall expenses during this tough time.  The downsizing of the military and the uncertain funding for our foreign customers special mission projects have made work availability and arrivals very unpredictable.  This results in major fluctuations in staffing requirements.  We are reducing the total headcount and many of our team members may need to take pay reductions to maintain an affordable staffing level to match the uncertain demands and to support adequate levels of customer service. Mr. Wagoner and I have agreed to significant reductions in our compensation to help allow for funding of additional product development as we adapt to the changing market demands,” commented Clark Stewart, president and CEO of Butler National Corporation. “We are excited about the future of Butler National Corporation.  These cost reductions allow the Company to move forward with new research and development projects that may support the Company for many years to come.  We recently announced our application and significant progress toward approval of a Supplemental Type Certificate (STC) for the AVCON Stage Three Noise Suppressor to be installed on the 20 series Learjet.  We are currently working on developing multiple STCs in support of the Classic Aviation and Special Mission markets.  We thank our team members and shareholders for their loyalty, patience and cooperation as Butler looks forward to a bright future.”

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