Wednesday, October 22nd10.2°C
23840
23589

Heroux-Devtek says 2014 revenue will be lower than last year due to military

LONGUEUIL, Que. - Aerospace manufacturer Heroux-Devtek Inc. (TSX:HRX) reports it had $2.6 million of net income in its fiscal third quarter and slightly lower revenue from its continuing operations.

The Quebec-based maker of landing gear for commercial and military aircraft had $61.45 million of revenue, down from $61.7 million a year earlier from comparable operations.

It also said full-year revenues for its 2014 financial year, excluding the impact of a recent acquisition, will be lower than its 2013 financial year but its overall profitability will improve.

"Heroux-Devtek generated a higher operating profitability during the third quarter as a result of a more favourable product mix compared with last year," president and CEO Gilles Labbe said Friday.

"As witnessed since the beginning of the current fiscal year, the strength of the large commercial aircraft market continues to be the main revenue driver, while the military aerospace market remains affected by U.S. budgetary constraints."

The Montreal-area company sold off its aerospace structures division, which accounted for about half of its business operations, in 2012 to focus on landing gear manufacturing and maintenance.

Heroux-Devtek's profit for the three months ended Dec. 31 amounted to eight cents per share of net income — a penny short of analyst estimates.

A year earlier, Heroux-Devtek had 14 cents per share of net income overall, but only 10 cents per share from its continuing operations.

In January, after the quarter ended, Heroux-Devek announced it will lay off about 55 employees at one of its Montreal-area plants due to lower demand from the U.S. military market.

The layoffs are expected to start in April and take place over 12 months, leaving 15 workers at the plant in nearby Longueuil, where the company has its head office and main base.

Last week, the company announced its first major acquisition since selling its aerostructure business, purchasing British landing-gear APPH Ltd. for $128 million.

The company warned in November that its revenue growth in the current year would be lower than a previous forecast.

Its third-quarter financial report issued Friday before a conference call didn't provide specific revenue guidance.

The Canadian Press


Read more Business News

23028


Recent Trending




Today's Market
S&P TSX14312.07-235.64
S&P CDNX808.00-14.28
DJIA16461.32-153.49
Nasdaq4382.847-36.632
S&P 5001927.11-14.17
CDN Dollar0.8883-0.0012
Gold1242.50-3.00
Oil79.98-0.15
Lumber330.70+2.00
Natural Gas3.658-0.001

 
Okanagan Companies
Pacific Safety0.12+0.02
Knighthawk0.01-0.005
QHR Technologies Inc1.15-0.02
Cantex0.055-0.025
Anavex Life Sciences0.198+0.006
Metalex Ventures0.05+0.005
Russel Metals32.53-0.56
Copper Mountain Mining2.10-0.07
Colorado Resources0.145-0.005
ReliaBrand Inc0.013+0.001
Sunrise Resources Ltd0.05-0.01
Mission Ready Services0.405-0.055

 



23015

FEATURED Property
20952245970 Victoria St
3 bedrooms 1 baths
$317,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Keep it rubber side down

This time of year, I always worry about which friends of mine will get caught going off the road in adverse weather conditions. With a little preparation most accidents can be avoided. Having won the...


Big bank predicts rate hike

Photo: Thinkstock.comThe end of record-low rates is nigh, according to one major bank, which has taken a stance and predicted when the Bank of Canada will raise its long-standing overnight rate. &ldq...


Experts share strategies in Kelowna

The third week in October is “Small Business Week”, a week dedicated to supporting local, small businesses. The week was designed to bring awareness to Canadians about the role small busin...

_








Member of BC Press Council


22632