Skip to main content

An employee works on landing gear at a Heroux-Devtek facility in Quebec in this undated photo.

Handout

Landing gear manufacturer Heroux-Devtek Inc. intends to focus on the defence side of its business to overcome a slow recovery expected in commercial aviation due to COVID-19.

Chief executive Martin Brassard said the Quebec-based company is “optimistic” about its growth prospects in this area, adding that it will take two to three years before commercial aviation returns to the level of activity that prevailed before the pandemic.

Heroux-Devtek lost $72 million or $1.98 per share in the fourth quarter following $85.8 million in non-cash impairment charges to reflect the forecast drop in commercial sector demand. That compared with a $12-million or 34 cents per share profit a year earlier.

Story continues below advertisement

Excluding non-recurring items, adjusted earnings rose seven per cent to $13.7 million, or 38 cents per share, eight cents above analyst forecasts.

Quarterly sales rose 5.6 per cent to $166.8 million with commercial revenues at $72 million, down 7.8 per cent, while defence revenues grew 19 per cent to $94.8 million

The company ended the year with a net loss of $50.7 million, or $1.38 per share, while revenues jumped 27 per cent to $613 million.

Heroux’s shares gained 74 cents or 8.2 per cent at $9.71 in afternoon trading on the Toronto Stock Exchange.

Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening. Sign up today.

Coronavirus information
Coronavirus information
The Zero Canada Project provides resources to help you manage your health, your finances and your family life as Canada reopens.
Visit the hub

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow topics related to this article:

View more suggestions in Following Read more about following topics and authors
Report an error
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies