Héroux-Devtek reports fiscal 2017 and fourth quarter results

For the fourth quarter Héroux-Devtek reported consolidated sales reached CA$120.9m, compared with CA$117.5m in the fourth quarter of fiscal 2016. This 2.9% increase reflects higher sales to the commercial aerospace market, as detailed below, while year-over-year fluctuations in the value of the Canadian currency versus foreign currencies had a negative impact of CA$$3.5m on fourth-quarter sales. Commercial sales rose 11.9% to CA$60.8m, versus CA$54.3m last year. The increase is mainly attributable to the beginning of deliveries for the Boeing 777 program, partially offset by lower customer requirements for certain business jet and large commercial aircraft programs, as well as unfavourable currency fluctuations. Net income reached CA$8.9m in the fourth quarter of fiscal 2017. Excluding non-recurring items net of taxes, adjusted net income for the fourth quarter of fiscal 2017 stood at CA$9.1m stable compared with the fourth quarter of fiscal 2016. Adjusted net income excluded an after-tax amount of CA$2.5m related to a non-cash gain resulting from the update of the estimated repayment schedule for one government authority loan.
For fiscal 2017, consolidated sales reached CA$406.5m, essentially stable compared with CA$406.8m in fiscal 2016. Yearover-year fluctuations in the value of the Canadian currency versus foreign currencies increased sales by CA$3.4m. Commercial sales increased 2.1% to CA$210.8m, while defence sales decreased 2.3% to CA$195.7m. Gross profit for fiscal 2017 amounted to CA$68.0m, equivalent to 16.7% of sales, compared with CA$74.3m, or 18.3% of sales, in fiscal 2016. Net income was CA$31.8m in fiscal 2017, compared with CA$26.6m in fiscal 2016. Adjusted net income stood at CA$26.4m versus CA$27.7m last year.