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Héroux-Devtek profit rises sharply Add to ...

Aerospace and industrial products manufacturer Héroux-Devtek Inc has closed out fiscal 2011 with what the company described Friday as its strongest quarterly results ever.

“Fiscal 2011 was a successful year on many fronts,” president and chief executive officer Gilles Labbe said in release accompanying the results.

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“We broadened our global reach by adding to our customer base and completed a strategic acquisition that met our financial objective of a 10 per cent accretion to profitability.”

Mr. Labbe also noted that the company had won several multi-year contracts on important programs and, just after year-end, announced a new facility in Mexico.

“More importantly, Héroux-Devtek continued to prosper despite the persistent strength in the value of the Canadian dollar, driven by a more favourable sales mix and further efficiency gains,” Mr. Labbe said, adding that all of the company’s product lines had “solidly contributed to sales and operating income.”

Quebec-based Héroux-Devtek said it earned fourth-quarter profit of $7.7-million or 25 cents per diluted share in the three months ended March 31.

That was up from $4.4-million or 14 cents in the same 2010 quarter.

Sales revenue was just under $106-million, up 28.8 per cent from $84.9-million in the prior-year period and included a $12.8-million contribution from its Eagle and E2 acquisitions.

Fluctuations in the value of the Canadian dollar versus the U.S. greenback reduced sales by $2.3-million, the company said in a release.

For the full year, consolidated sales reached $357.6-million, up 11.6 per cent over fiscal 2010 when sales were $320.4-million.

“This growth reflects sales of $45-million from Eagle and E2 and a $3.1-million increase in industrial sales, offset by an $11.7-million negative impact from fluctuations in the value of the Canadian dollar versus the U.S. currency,” the company said in a release.

Currency fluctuations also had a $1.6-million negative impact on gross profit. However, Héroux-Devtek said the effect had been mitigated by the use of forward foreign exchange sales contracts and natural hedging from the purchase of materials U.S. dollars.

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