Heroux-Devtek posts impressive second quarter
Aug. 2, 2012, Longueuil, Que. - Heroux-Devtek Inc. says higher deliveries to its civil aerospace markets as well as strong sales of
industrial products helped push up quarterly revenue to $99.2 million in the three months ended June 30.
August 2, 2012 By The Canadian Press
That was up eight per cent from a year earlier, when Montreal-area company's first-quarter revenue was $91.9 million.
Its profit also rose, to $6.3 million or 20 cents per share from $5.8 million or 19 cents per share.
The consensus estimate compiled by Thomson Reuters was a penny higher at 21 cents per share, based on four analysts. The revenue was above both estimates provided, which were as high as $98 million.
Last month the company, headquartered in Longeuil, Que., announced a deal to sell about one-third of its business for $300
million to a U.S. firm.
Precision Castparts Corp. of Portland, Ore., will acquire Heroux-Devtek's Aerostructure and Industrial Products division, which had about $130 million of annual sales last year and 440 employees.
Heroux-Devtek will focus on growth and possible acquisitions in its landing gear business after the deal closes.
"Heroux-Devtek posted improved first quarter results driven by higher deliveries to the large commercial aircraft and business jet markets, as well as strong sales of Industrial products," president and chief executive Gilles Labbe said Thursday.
"Military sales also increased reflecting our extensive diversification with regards to product and service offering as well
as aircraft programs," he added in a statement.
"More importantly, once we complete the proposed sale of substantially all of our Aerostructure and Industrial product line
operations later this quarter, Heroux-Devtek will remain well diversified within its core Landing Gear market. Our balanced
portfolio between commercial and military activity, combined with our internal strengths and extensive know-how, gives Heroux-Devtek the ability to capture any new business opportunity that may arise.''