Heroux Devtek profits take off as demand for plane parts rises, supply chains sync up
August 9, 2023 By The Canadian Press
LONGUEUIL, Que. — Heroux-Devtek Inc. says profits shot up more than 300 per cent amid higher demand from the aviation world following a tough pandemic period for the Quebec-based company.
The maker of aircraft landing gear notched net income of $3.97 million in the quarter ended June 30, compared with $965,000 during the same period a year earlier.
In its first quarter, sales of Heroux-Devtek gear and services rose 23 per cent year over year to $140.7 million from $114.1 million twelve months prior.
Basic and diluted earnings quadrupled to 12 cents per share from three cents per share in the first quarter of 2022, beating analysts’ expectations of 10 cents per share, according to financial markets data firm Refinitiv.
CEO Martin Brassard says the company managed a major surge in demand due to improvements put in place over the past year after supply chain challenges held back deliveries and profits in 2022.
The company says sales in both its civil and defence segments jumped largely because of a ramp-up in deliveries of Boeing 777 airliners and Embraer Praetor business jets as well as smoother supply processes.
- US Postal Service reduces air cargo by 90% over 2 years as part of cost cutting effort
- The FAA asks the FBI to consider criminal charges against 22 more unruly airline passengers