Héroux-Devtek, a leading international manufacturer of aerospace products, has reported strong results for the second quarter ended September 30, 2019.
Consolidated sales grew 52.1% to CA$145.5 million, up from CA$95.6 million last year, including a 14.3% organic growth and a solid performance by the Corporation’s recent acquisitions, which contributed CA$36.1 million. Commercial sales grew 38.1% from CA$47.0 million to CA$64.9 million, while defense sales were up 65.7%, from CA$48.6 million to CA80.6 million.
Gross profit as a percentage of sales decreased during the second quarter to 15.3%, from 16.2% last year, mainly due to the 0.6% negative net impact of exchange rate fluctuations and higher manufacturing costs at the Longueuil facility. These negative factors were partially offset by the positive impact of the CESA acquisition.
Operating income increased to CA$10.5 million, or 7.2% of sales, up from CA$5.3 million, or 5.5% of sales last year, mainly driven by lower selling and administrative expenses as a percentage of sales. Last year’s operating income also reflected non-recurring acquisition-related costs, as opposed to this year. Adjusted EBITDA, which excludes non-recurring items, stood at CA$21.5 million, or 14.8% of sales, compared with $13.2 million, or 13.8% of sales, a year ago. For the same period, EPS doubled from CA$0.09 last year to CA$0.18 this quarter, while adjusted EPS grew 50%, from CA$0.12 last year to CA$0.18 in Q2. (US$1.00 = CA$1.32 at time of publication.)