Canadian Manufacturing

Heroux Devtek boosts profits but sees sales fall as pandemic continues to take toll

The Quebec-based company says civil aviation sales continued to fall, dropping more than 17 per cent in the quarter ended Sept. 30 compared to the same period a year earlier.

November 14, 2021  The Canadian Press

LONGUEUIL— Heroux-Devtek Inc. saw profits climb but revenue fall last quarter as the landing-gear maker bore the impact of ongoing aerospace turbulence caused by the COVID-19 pandemic.

The Quebec-based company says civil aviation sales continued to fall, dropping more than 17 per cent in the quarter ended Sept. 30 compared to the same period a year earlier.

However, defence sales climbed by about nine per cent to $94 million.

Total revenue decreased to $131.3 million in the company’s second quarter compared to $137.1 million the year before, a drop the company attributes to the negative impact of foreign exchange fluctuations.

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Heroux-Devtek’s net income nearly doubled in the latest quarter to $7.5 million from $3.8 million in the second quarter of 2020.

Adjusted net income of $7.5 million or 21 cents per share rose from 11 cents per share and beat analyst expectations of 18 cents per share, according to financial markets data firm Refinitiv.

“Heroux-Devtek has continued to mitigate the pandemic’s impact on civil production rates by consistently delivering strong growth in the defence sector. I am particularly proud of Heroux-Devtek’s financial performance, which demonstrates our agility to adapt to unforeseen events,” CEO Martin Brassard said in a statement Friday.

He noted that the company has extended its contract with Boeing for the 777 wide-body jetliner to 2030 and secured an agreement with Lockheed Martin to develop landing gear for its next generation of defence aircraft.

This report by The Canadian Press was first published Nov. 12, 2021.