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Heroux-Devtek quarterly profit dips to $2.6-million on lower revenue

A worker works at on aircraft landing gear without wheels at Heroux-Devtek in Quebec.

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Landing gear manufacturer Héroux-Devtek Inc. earned $2.6-million in its fiscal second quarter, a 2.3-per-cent decrease from last year not counting a large gain in the prior-year period from the sale of its aerostructure division.

The Montreal-based company earned 8 cents per share from continuing operations for the period ended Sept. 30, 1 cent ahead of analyst expectations. Heroux earned $2.64-million or 9 cents per share from continuing operations last year.

Including a large gain from the sale of the division, Heroux-Devtek earned $112.6-million or $3.64 per share last year.

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Revenue from continuing operations fell to $56.4-million from $57.7-million a year ago.

Sales to the commercial aerospace market increased 8.8 per cent to $27-million on new business on the Boeing 777 and increased production rates for the large aircraft, as well as for the Airbus A320, partially offset by lower aftermarket sales on Bombardier's CL-415 water bomber.

Military sales decreased 10.6 per cent to $29.4-million due to lower demand B-2, Global Hawk, F-15 and C-17 aircraft, partially offset by new business with Boeing on the CH-47 Chinook helicopter.

Lower military sales also reflect a weak U.S. military market due to reduced base defence budget funding and the continued impact from across-the-board cuts known as sequestration that are hitting U.S. agencies.

During the quarter, Heroux-Devtek signed a memorandum of agreement with Boeing to supply complete landing gear systems for the Boeing 777 program. A multi-year contract expected to be signed by year-end would be the company's largest landing gear contract.

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