Héroux-Devtek sees profits plummet amid Omicron-induced production problems
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Hey there, time traveller!
This article was published 09/02/2022 (1416 days ago), so information in it may no longer be current.
LONGUEUIL, Que. – Héroux-Devtek Inc. is reporting a major drop in profit and revenue last quarter due to supply chain disruptions brought on by the Omicron variant of COVID-19.
The landing-gear manufacturer says delayed deliveries and snags at its U.S. factories pushed down defence sales, while lower demand from commercial aircraft clients suppressed civil aviation sales, despite a boost in business for private jet programs.
CEO Martin Brassard says he expects these factors to affect results this quarter as well, though he is confident Héroux-Devtek can “recover the lower throughput” throughout 2022.
The Quebec-based company says net income fell 24 per cent to $6.5 million in its third quarter from $8.5 million a year earlier, taking analysts by surprise.
It is reporting sales dropped 13 per cent to $131.1 million in the quarter ended Dec. 31 from $150.3 million in the same period in 2020.
On an adjusted basis, Héroux-Devtek says earnings per share decreased to 18 cents from 26 cents the prior year, falling below analyst expectations of 24 cents, according to financial data firm Refinitiv.
This report by The Canadian Press was first published Feb. 9, 2022.
Companies in this story: (TSX:HRX)