Heroux Devtek boosts profits but sees sales fall as pandemic continues to take toll
LONGUEUIL, Que. — Heroux-Devtek Inc. saw profits climb but revenue fall last quarter as the landing-gear maker bore the impact of ongoing aerospace turbulence caused by the COVID-19 pandemic.
The Quebec-based company says civil aviation sales continued to fall, dropping more than 17 per cent in the quarter ended Sept. 30 compared to the same period a year earlier.
However, defence sales climbed by about nine per cent to $94 million.
Total revenue decreased to $131.3 million in the company’s second quarter compared to $137.1 million the year before, a drop the company attributes to the negative impact of foreign exchange fluctuations.
Heroux-Devtek’s net income nearly doubled in the latest quarter to $7.5 million from $3.8 million in the second quarter of 2020.
Adjusted net income of $7.5 million or 21 cents per share rose from 11 cents per share and beat analyst expectations of 18 cents per share, according to financial markets data firm Refinitiv.
“Heroux-Devtek has continued to mitigate the pandemic’s impact on civil production rates by consistently delivering strong growth in the defence sector. I am particularly proud of Heroux-Devtek’s financial performance, which demonstrates our agility to adapt to unforeseen events,” CEO Martin Brassard said in a statement Friday.
He noted that the company has extended its contract with Boeing for the 777 wide-body jetliner to 2030 and secured an agreement with Lockheed Martin to develop landing gear for its next generation of defence aircraft.