Vectrus CEO says COVID-19 pandemic cut yearly sales by $63 million

By Marjorie Censer / March 3, 2021 at 12:10 PM

The chief executive of Vectrus said this week restrictions related to the ongoing COVID-19 pandemic trimmed annual sales by $63 million.

In a call with analysts Tuesday, Chuck Prow said the company saw "COVID-related host-nation and base access restrictions" that reduced sales in its most recent quarter by $26 million.

Prow said the pandemic is generating uncertainty about timing and that the vaccine process will play a role.

"We have intentionally put what we think to be conservative guidance with regard to revenue because the reality with regard to COVID and the headwinds associated with COVID, particularly in [Indo-Pacific Command], are still a bit uncertain," he said, noting the company's transition to the Kwajalein Atoll in the Marshall Islands in connection with its work for the Army's Logistics Civil Augmentation Program is not slated to occur until 2022.

"We're working through our host-nation contacts and with our clients to do what we can to continue to move transition of Kwajalein to the left," he added. "And it's highly dependent upon vaccines."

Meanwhile, Vectrus said sales in 2020 totaled $1.4 billion, up 1% over 2019. Profit for the year hit $37 million, up 11% from 2019.