Heroux Devtek sees profits plummet amid Omicron induced production problems
February 9, 2022 By The Canadian Press
LONGUEUIL, Que. — Heroux-Devtek Inc. is reporting a major drop in profit and revenue last quarter due to supply chain disruptions brought on by the Omicron variant of COVID-19.
The landing-gear manufacturer says delayed deliveries and snags at its U.S. factories pushed down defence sales, while lower demand from commercial aircraft clients suppressed civil aviation sales, despite a boost in business for private jet programs.
CEO Martin Brassard says he expects these factors to affect results this quarter as well, though he is confident Heroux-Devtek can “recover the lower throughput” throughout 2022.
The Quebec-based company says net income fell 24 per cent to $6.5 million in its third quarter from $8.5 million a year earlier, taking analysts by surprise.
It is reporting sales dropped 13 per cent to $131.1 million in the quarter ended Dec. 31 from $150.3 million in the same period in 2020.
On an adjusted basis, Heroux-Devtek says earnings per share decreased to 18 cents from 26 cents the prior year, falling below analyst expectations of 24 cents, according to financial data firm Refinitiv.