Sunday, May 3rd19.2°C
26088
22748

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




Recent Trending




Today's Market
S&P TSX15339.77+115.25
S&P CDNX699.43+3.46
DJIA18024.06+183.54
Nasdaq5005.39+63.97
S&P 5002108.29+22.78
CDN Dollar0.8219-0.0004
Gold1174.50-4.90
Oil59.15-0.58
Lumber256.30-1.90
Natural Gas2.776+0.018

 
Okanagan Companies
Pacific Safety0.125+0.010
Knighthawk0.010.00
QHR Technologies Inc1.46-0.03
Cantex0.04+0.00
Anavex Life Sciences0.33+0.04
Metalex Ventures0.09+0.00
Russel Metals27.29-0.31
Copper Mountain Mining1.52+0.07
Colorado Resources0.10-0.00
ReliaBrand Inc0.004-0.001
Sunrise Resources Ltd0.04+0.00
Mission Ready Services0.215-0.005
Decisive Dividend Corporation1.85-0.15

 





FEATURED Property
2197657240 Mugford Road
4 bedrooms 2 baths
$359,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Not the lawsuit type

If I asked you whether you were the lawsuit type, chances are that your answer would be a resounding “NO”. Most people cringe at the thought of being involved in a lawsuit and if you don&r...


The rules are changing

In recent years, a number of countries, including England, Australia and the United States, have changed the regulatory framework that governs their financial institutions. Included have been changes ...


Buy versus rent

Consider the top five reasons to buy versus rent: #5 Experience Freedom: Home ownership will free you from the ties that bind you to a landlord...no longer will you be dependent on someone else&rsq...

_



25522

26166


Member of BC Press Council


25690