Skip to main content

The Globe and Mail

Héroux-Devtek profit hit by cuts in military spending

An employee works at on landing gear at Heroux Devtek in Quebec.

Cuts in U.S. military spending sideswiped fourth-quarter earnings at Canadian plane parts maker Héroux-Devtek Inc..

Longueuil, Que.-based Héroux-Devtek posted net profit from continuing operations of $4.8-million or 15 cents per share in the fourth quarter, down from $5.6-million in the year-earlier period.

Sales in the quarter also slipped, to $73.8-million from $74.8-million.

Story continues below advertisement

Sales to the military aerospace market declined 14.4 per cent to $41.6-million as a result of manufacturing inefficiencies and lower military customer demand, the company said.

A "solid increase in sales to the commercial aerospace market was partially offset by lower sales of military products, mainly due to U.S. budgetary restrictions," Heroux-Devtek president and chief executive officer Gilles Labbé said.

Last year, Heroux-Devtek sold its aerostructure and industrial products divisions to Precision Castparts Corp. for proceeds of $234.3-million.

The company is now focused on the manufacture of landing-gear systems.

Report an error Licensing Options
About the Author
Quebec Business Correspondent

Bertrand has been covering Quebec business and finance since 2000. Before joining The Globe and Mail in 2000, he was the Toronto-based national business correspondent for Southam News. He has a B.A. from McGill University and a Bachelor of Applied Arts from Ryerson. More

Comments

The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

We’ve made some technical updates to our commenting software. If you are experiencing any issues posting comments, simply log out and log back in.

Discussion loading… ✨