Heroux-Devtek Inc.
TSX : HRX

Heroux-Devtek Inc.

January 27, 2015 09:33 ET

Heroux-Devtek Will Record a Non-Cash Charge Related to the Pause on the Bombardier Learjet 85 Program

LONGUEUIL, QUÉBEC--(Marketwired - Jan. 27, 2015) - Héroux-Devtek Inc. (TSX:HRX), ("Héroux- Devtek" or the "Corporation"), a leading international manufacturer of aerospace products, today announced that it will record a non-cash and non-recurring charge of $7.9 million before taxes, equivalent to $5.8 million or $0.16 per diluted share after taxes, in its financial results for the third-quarter ended December 31, 2014. These results will be released on February 5, 2015 before the market opens.

This charge represents the impairment of capitalized development costs on the Learjet 85 business aircraft program and follows the announcement by Bombardier Inc. (TSX:BBD.B) on January 15, 2015 to pause the Learjet 85 program due to "the continued weakness of the Light business aircraft category since the economic downturn and the downward revision of Bombardier's business aircraft market forecast". Héroux-Devtek is the developer and supplier of the complete landing gear system for the aircraft.

PROFILE

Héroux-Devtek Inc. (TSX:HRX) is a Canadian company specializing in the design, development, manufacture and repair and overhaul of landing gear and actuation systems and components for the Aerospace market. The Corporation is the third largest landing gear company worldwide, supplying both the commercial and military sectors of the Aerospace market with new landing gear systems and components, as well as aftermarket products and services. The Corporation also manufactures electronic enclosures, heat exchangers and cabinets for suppliers of airborne radar, electro-optic systems and aircraft controls through its Magtron operations. On a pro forma basis, approximately 75% of the Corporation's sales are outside Canada, including 50% in the United States. The Corporation's head office is located in Longueuil, Québec with facilities in the Greater Montreal area (Longueuil, Laval and St-Hubert); Kitchener and Toronto, Ontario; Springfield and Cleveland, Ohio; Wichita, Kansas; and Runcorn, Nottingham and Bolton, United Kingdom.

FORWARD-LOOKING STATEMENTS

Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of the Corporation. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for the Corporation's products and services, the impact of price pressures exerted by competitors, and general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.

Contact Information

  • From: Heroux-Devtek Inc.
    Gilles Labbe
    President and Chief Executive Officer
    (450) 679-3330

    Contact: Heroux-Devtek Inc.
    Stephane Arsenault
    Chief Financial Officer
    (450) 679-3330

    MaisonBrison
    Martin Goulet, CFA
    (514) 731-0000