Second quarter results positive for Heroux-Devtek Inc.
Nov. 4, 2011, Montreal - Heroux-Devtek Inc., a maker of aerospace and industrial products, reports its net profit nearly doubled in the latest quarter on higher revenues and more efficient manufacturing.
November 4, 2011 By The Canadian Press
The Montreal area company said Friday it earned $4.8 million, or 16 cents a share, in the three months ended Sept. 30, the second quarter of its 2012 fiscal year.
That compared with net earnings of $2.7 million, or nine cents, a year ago.
Revenues for the period increased 3.4 per cent to $86 million from $83.2 million.
The company said its earnings before interest, taxes, depreciation and amortization rose as the company benefited from a better product mix and a better absorption of manufacturing overhead costs because of higher volumes.
Manufacturing improvements also had a favourable impact on operating profits, which rose to $7.6 million from $5.2 million.
"Heroux-Devtek recorded strong second quarter and first half financial results, a performance that clearly validates our focus on value-added products and services as well as earlier investments in productivity enhancement initiatives, as we constantly seek greater efficiency in order to offset the high value of the Canadian currency," president and CEO Gilles Labbe said in the company's earnings report released before stock markets opened Friday.
"Although the global macro-economic environment remains volatile, underlying demand in our core markets is robust with higher production rates for several large commercial aircraft programs, the ramp-up of new aircraft programs on which we are
actively involved, and solid order books in our main industrial markets."
Heroux-Devtek supplies landing gears and other parts to makers of commercial and military aircraft and provides industrial customers with large components for power generation equipment.
The company is based in Longueuil, Que. and has plants in the Montreal area, Kitchener, Ont., Toronto, U.S. plants in Arlington, Tex.; Springfield, Cleveland and Cincinnati, in Ohio, as well as Queretaro, Mexico.
About 70 per cent of Heroux-Devtek's sales are outside Canada.