‘Geopolitical tensions’ mean more business for Héroux-Devtek, as defence needs rise
Advertisement
Read this article for free:
or
Already have an account? Log in here »
To continue reading, please subscribe:
Digital Subscription
One year of digital access for only $205*
- Enjoy unlimited reading on winnipegfreepress.com
- Read the E-Edition, our digital replica newspaper
- Access News Break, our award-winning app
- Play interactive puzzles
*First annual payment billed as $205.00 + GST for one year. This annual subscription will automatically renew at $233.00 + GST every 52 weeks (10% off the regular annual price of $259.35). Offer available to new and qualified returning subscribers only. Cancel any time.
To continue reading, please subscribe:
Add Free Press access to your Brandon Sun subscription for only an additional
$1 for the first 4 weeks*
- Enjoy unlimited reading on winnipegfreepress.com
- Read the E-Edition, our digital replica newspaper
- Access News Break, our award-winning app
- Play interactive puzzles
*Your next Brandon Sun subscription payment will increase by $1.00 and you will be charged $17.95 plus GST for four weeks. After four weeks, your payment will increase to $24.95 plus GST every four weeks.
Read unlimited articles for free today:
or
Already have an account? Log in here »
Hey there, time traveller!
This article was published 22/05/2024 (840 days ago), so information in it may no longer be current.
MONTREAL – Global strife has boosted demand for Héroux-Devtek Inc. wares, with the continued rebound in commercial travel adding to its record sales last quarter, said CEO Martin Brassard.
“The aerospace industry outlook remains very strong. Global passenger traffic is back to pre-pandemic levels,” he told analysts on a conference call Wednesday. The International Air Transport Association predicts further growth, the head of the aircraft landing gear maker noted.
“On the defence side, geopolitical tensions have added urgency to the defense industry’s effort to maintain, develop and launch new aircraft programs and we are very active on the number of defence platforms.”
Defence sales rose slightly from last year to $108.2 million in the company’s fourth quarter. The company carried out maintenance and deliveries on the Sikorsky CH-53K King Stallion helicopter — a heavy transport chopper used by the U.S. Marine Corps — and Lockheed Martin F-35 fighter jets, deployed by more than a half-dozen militaries.
On the civil aviation side, sales jumped 55 per cent year over year to $75.8 million in the quarter ended March 31, pushed up by deliveries of Boeing 777 jetliners and Embraer Praetor and E2 planes.
In an interview Tuesday, Brassard said he was unconcerned about delays in Boeing Co. production after a door plug blowout on a 737 Max 9 aircraft during an Alaska Airlines flight in January sparked an investigation by U.S. regulators.
“Right now we’re ramping up. The 777 is going well,” the chief executive said, adding that he hopes to see the Boeing’s 777x wide-body jet enter into service next year or early 2026.
Héroux-Devtek reported a fourth-quarter profit of $20.7 million, up from $6.3 million a year earlier, as its sales rose 18 per cent.
Sales in the three-month period shot up 18 per cent year over year to a record $184.1 million, said the Montreal-area-based company.
On an adjusted basis, Héroux-Devtek earned 49 cents per share in its latest quarter, up more than 170 per cent from an adjusted profit of 18 cents per share in the same quarter last year and blowing past analysts’ expectations of 31 cents per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published May 22, 2024.
Companies in this story: (TSX:HRX)