Heroux-Devtek Sees Decline in Q2 Profit Despite Sales Growth

Canadian aerospace company, Heroux-Devtek, reported a 3.6% decrease in profit for the latest quarter, despite a rise in sales. The increase in sales was primarily driven by growth in the civil segment and favorable currency movements.

During the second quarter, net income slipped to 4.6 million Canadian dollars ($3.4 million), or C$0.14 per share, compared to C$4.8 million, or C$0.14 per share, in the same period last year. Adjusted per-share earnings for the three-month period also stood at C$0.14, falling just short of the forecasted C$0.15 as polled by five analysts.

Sales for the quarter increased by 6.6% to C$141.5 million, slightly below the expected C$142.4 million. The civil segment of the Quebec-based company witnessed a significant sales surge of 30% to C$53.6 million. This boost can be attributed to increased deliveries for the Boeing 777 and Embraer Praetor programs. However, defense sales experienced a decline of 3.8% to C$87.9 million due to delayed deliveries for the Boeing F-18 program.

Despite facing ongoing challenges stemming from the global aerospace supply chain's instability, Heroux-Devtek remains positive about the results achieved so far. The company, which specializes in aircraft landing gear and other equipment, is confident that its implemented strategies will yield positive outcomes.