Canadian Manufacturing

Heroux-Devtek profits fall due to supply chain troubles from Omicron

CEO Martin Brassard says he expects these factors to affect results this quarter as well.

February 10, 2022   The Canadian Press

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.

Advertisement

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.