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Héroux-Devtek profit hit by cuts in military spending

An employee works at on landing gear at Heroux Devtek in Quebec.

Cuts in U.S. military spending sideswiped fourth-quarter earnings at Canadian plane parts maker Héroux-Devtek Inc..

Longueuil, Que.-based Héroux-Devtek posted net profit from continuing operations of $4.8-million or 15 cents per share in the fourth quarter, down from $5.6-million in the year-earlier period.

Sales in the quarter also slipped, to $73.8-million from $74.8-million.

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Sales to the military aerospace market declined 14.4 per cent to $41.6-million as a result of manufacturing inefficiencies and lower military customer demand, the company said.

A "solid increase in sales to the commercial aerospace market was partially offset by lower sales of military products, mainly due to U.S. budgetary restrictions," Heroux-Devtek president and chief executive officer Gilles Labbé said.

Last year, Heroux-Devtek sold its aerostructure and industrial products divisions to Precision Castparts Corp. for proceeds of $234.3-million.

The company is now focused on the manufacture of landing-gear systems.

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About the Author
Quebec Business Correspondent

Bertrand has been covering Quebec business and finance since 2000. Before joining The Globe and Mail in 2000, he was the Toronto-based national business correspondent for Southam News. He has a B.A. from McGill University and a Bachelor of Applied Arts from Ryerson. More


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