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Heroux Devtek Reports Q3 Adjusted Net Income Beat of $0.26 Per Share; Provides Restructuring Update

· 02/05/2021 03:24

08:09 AM EST, 02/05/2021 (MT Newswires) -- Heroux-Devtek (HRX.TO), an international manufacturer of aerospace products and the world's third-largest landing gear manufacturer, on Thursday reported Q3 2021 revenue of $150.3 million, beating a Capital IQ consensus mean forecast of $139.05 million, but 4.4% lower than Q3 2020's revenue of $157.23 million. Defence sales 21.1% higher, from $84.1 million last year to $101.8 million. The increase was largely fuelled by the ramp-up of deliveries under the Boeing F-18, Sikorsky CH-53K and Saab Gripen-E programs. Civil sales decreased 33.7%, from $73.2 million to $48.5 million.

Net income for the quarter was $8.5 million, or $0.24 per diluted share, versus net income of $8.7 million, or $0.24 per diluted share for the year ago quarter.

Heroux Devtek reported adjusted net income of $9.36 million, or $0.26 per adjusted diluted share, beating a Capital IQ forecast of $0.16 per adjusted share, and also higher than Q3 2020's adjusted net income of $8.7 million, or $0.24 per adjusted share for the previous corresponding quarter.

Since the beginning of the fiscal year, Heroux-Devtek has announced restructuring initiatives in light of COVID-19. These initiatives will affect 15% of the workforce, or approximately 315 employees, and includes the closing Alta Precision and APPH Wichita.

To date, $9.5 million of related costs have been recorded as restructuring charges, mainly comprised of employee-related charges and costs to dismantle and relocate machinery. As planned, 76% of staff reductions have been completed as at the end of the quarter and the remaining reductions will occur after the closure of Alta Precision and APPH Wichita.

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