Moody's downgraded Carlyle Group affiliate TurboCombustor Technology, dba Paradigm Precision. Various Florida entities provided nearly $5 million for TurboCombustor/Paradigm to add 200 jobs at their Stuart, Florida plant. There's no report from the Governor's office on Carlyle's performance the last two years. Let's hope Carlyle's job promises are better met in Florida. Texas got virtually nothing for giving Carlyle affiliate Vought Aircraft Industries $35 million for six years.
The downgrade reflects levels of cash flow generation that continue to trail expectations coupled with recent weakness in operating performance that has led to a further tightening on an already strained cash flow profile. Moody's anticipates negative free cash flow for 2015This will hurt employment as Carlyle sheds expenses in order to make principal and interest payments on $330 million in debt. The question is how much? Carlyle won't tell and if Florida Governor Rick Scott is like Texas counterpart Rick Perry, expect any number to be a whopper of a lie. Government aided employment numbers are like fish tales.
The company will add jobs in Poland according to a recent press release. The drive to produce in lower wages countries is clear from this part of their press release.
received a nearly $10 million contract in May for afterburner flame holders. Carlyle's sponsorship reveals a number of PEU practices.
Uncle Sam part of the revenue stream? CheckLet's hope it's not another Vought where Texans gave Carlyle $1 million per job lost over a period of six years.
Sending work to cheaper parts of the globe? Check
Getting $ millions to add U.S. jobs? Check
Update 9-25-16: Summer 2016 brought another Moody's downgrade for Carlyle's TurbocCombustor.