Restructured Heroux-Devtek's profit falls
LONGUEUIL, Que. - Heroux-Devtek Inc. (TSX:HRX) has reported a lower profit for its fiscal third quarter following the sale of a large portion of its manufacturing operations last year.
The Montreal-area aerospace manufacturer said Friday it had $4.6 million of net income in the quarter ended Dec. 31, or 15 cents per share, including discontinued operations.
That's down from $6.9 million or 23 cents per share a year earlier, before Heroux-Devtek sold part of its business in August to focus on aircraft landing gear.
Overall net income was a penny better than analyst estimates but the company fell short on other measures of profitability, according to figures compiled by Thomson Reuters.
It had $7.65 million of earnings before taxes, depreciation and amortization — compared with a consensus estimate of nearly $8.9 million in EBIDTA from continuing operations.
Meanwhile, net income from continuing operations was $3.3 million or 11 cents per share, down from $4.5 million or 15 cents per share in the third quarter of 2011 and two cents per share below the consensus estimate.
Heroux-Devtek's continuing operations generated $61.7 million in sales in the quarter ended Dec. 31, down slightly from nearly $62 million in the year-earlier quarter.
In December, Heroux-Devtek shareholders approved a $160-million special distribution, the equivalent of $5 per share, resulting from the sale of its industrial and aerostructure operations in a $232-million deal last summer.
Heroux-Devtek (TSX:HRX) also used proceeds from the sale to pay $54 million of debt.
The Quebec-based company's plan is to grow its position as the world's third-largest manufacturer of aircraft landing gear.
The company has warned that aircraft parts suppliers could face long-term negative consequences if Canada abandons plans to purchase the F-35 fighter jet from Lockheed Martin.
The Harper government is reviewing the planned purchase of 65 of the military jets after a KPMG report warned that the planes could cost as much as $45.8 billion over 42 years, including maintenance and other costs. That's far more than the $9 billion set aside by the Defence Department.
Note to readers: This is a corrected story. An earlier version said it was Heroux-Devtek's fourth quarter, rather than its third quarter.