Héroux-Devtek Increases Its Profits
Héroux-Devtek released its second-quarter results for fiscal year 2022. Revenue reached $131.3 million, down 4% from the same period a year earlier. This is largely explained by a decline in the exchange rate which caused a shortfall of $5.8 million. Military sector sales rose 9.1% to $94 million. In the civilian sector, they fell 15.4% to $37.4 million.
At the beginning of the pandemic, management launched a program to reduce operating costs. As a result, profits have risen from $7.1 million the previous year to $12 million for the current year. Operating activities generated cash flow of $17 million. During the quarter, Héroux-Devtek’s net debt was reduced by 12.1 million to $145 million.
The Relationship With Boeing
It was in 2013 that Héroux-Devtek won the important contract to manufacture the landing gear for the B777. Boeing made a daring bet by choosing the Montreal SME. In 2017 that it delivered the first ship sets to the American giant. Since then, Héroux-Devtek has met and exceeded all of Boeing’s quality standards and always delivers on time. The business relationship between the two companies therefore continued to expand.
Héroux-Devtek has been the main landing gear supplier for the F/A-18 Super Hornet for a few months now. When I visited the assembly line in St. Louis, F/A18 production manager, Ms. Jessica Idleman, had only good words for Héroux-Devtek. The latter stressed that the transition went smoothly. Landing gears meet quality standards and arrive on time.
The strong relationship with Boeing should allow the landing gear manufacturer to secure further mandates.
The Defence Market
Héroux-Devtek is a highly-rated supplier to all of its customers and its reputation is excellent. It is present on 12 military programs:
1. Lockheed Martin F-35
2. Boeing F-18 Super Hornet
3. Sikorsky CH053
4. Boeing CH-47 Chinook
5. Lockheed Martin C-130J
6. Boeing F-15EX Eagle
7. Saab Gripen E
8. Boeing M-Q25
9. Airbus C-295
10. Airbus A400M
11. Eurofighter Typhoon
12. KAI KF-21 Boramea
In addition, the company recently won a new contract with Lockheed Martin. Héroux-Devteks is now a major manufacturer of defence landing gear. Its current financial situation position the company to bid on additional programs or to acquire suppliers in difficulty. But above all, the revenues of the defence sector provide it with a very solid financial base. In the coming years, it will be able to tackle the airliner market.
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