Heroux-Devtek reports strong profit increase
Feb. 3, 2012, Montreal - Heroux-Devtek Inc. reports its net profits in the latest quarter rose more than a third while sales increase nearly nine per cent.
February 3, 2012 By The Canadian Press
The Montreal-area company reported Friday it earned $6.9 million, or 23 cents a share for the three months ended Dec. 31, the third quarter of its 2012 fiscal year.
That was 33.8 per cent higher than $5.2 million, or 22 cents earned a year earlier.
Sales rose 8.8 per cent to $93.4 million from $85.8 million as the company benefited from strong growth of more than 53 per cent in its industrial products business.
"Heroux-Devtek posted another solid performance in the third quarter, as sales rose for all product lines, profitability further increased and our financial position strengthened," president and CEO Gilles Labbe said in a release before stock markets opened.
"During the quarter, we inaugurated our new manufacturing facility in Queretaro, Mexico. This strategic expansion further enhances our flexibility, value proposition to OEMs and overall competitiveness."
The company makes and repairs aircraft components such as landing gears for military and commercial customers. Heroux-Devtek also makes parts for power generation equipment and precision components for other industrial applications.
About 70 per cent of the company's business comes from outside Canada, mainly in the United States.
The company has plants in the Montreal area, Kitchener, Ont. and Toronto as well as plants in Arlington, Tex.; Springfield, Cleveland and Cincinnati, in Ohio, as well as Mexico.