Héroux-Devtek sees stronger markets
CEO provides shareholders with positive outlook Annual growth forecast at 10%.
September 19, 2007 By Carey Fredericks
MONTREAL, Aug. 3 /CNW Telbec/ – Héroux-Devtek Inc. a leading Canadian manufacturer of aerospace and industrial products, sees renewed growth in its markets and will build on the progress made in the past year
when it won new contracts or contract renewals worth $220 million, including mandates to provide components for the Boeing 777 over the next ten years. Company President and CEO, Gilles Labbé today told shareholders that the Company is well positioned to take advantage of the business opportunities
opening up in its industries. "We are building a business that is sustainable in the longer term and more resistant to market down cycles. And most importantly, we are focused on a return to profitability for the current year," said Mr. Labbé.
Yesterday, Héroux-Devtek reported its third consecutive quarter of improvement in income from continuing operations. Sales for the first quarter ended June 30, 2006 were $66.3 million, up 23% from $53.9 million for the first quarter a year ago. Net income from continuing operations for the first quarter was $0.7 million or $0.02 per share compared to a net loss from continuing operations of $2.4 million or $0.09 per share. Net income was $0.7 million or $0.02 per share, compared to $6.4 million or $0.24 per share for the same quarter last year when considering discontinued operations of $8.8 million or $0.33 per share.
Mr. Labbé, recently back from the Farnborough International Air Show, told the meeting that the commercial aerospace industry entered a new growth cycle last year. He noted that orders for large commercial aircraft, business jets and turboprops all rebounded strongly, taking over from lagging regional jet sales. Both Boeing and Airbus had a record year, with combined orders of over 2,000 commercial aircraft. "We saw our own revenues increase 10% in fiscal 2006 and we were profitable in the second half of the fiscal year.
Héroux-Devtek is prepared for the growth which is expected to continue in subsequent years, as we continue to assume our place as a supplier to world-class aerospace manufacturers."