EDMONTON, Alta. -- Canadian suspension manufacturer Raydan Manufacturing reported a $1.5 million net loss for the second quarter, but management says it has reason for optimism.
The company’s Ontario Service Shop has returned to full operation following a fire in June, it has begun shipping trailer suspensions for the US Marine Tactical Vehicle Replacement Trailer Project and it recently increased capacity for twin steer work at its Ontario facility.
Still, Raydan says its financial performance is hindered by the sluggish Canadian economy and troubled world economic situation. Revenue was down 48% in the second quarter compared to the same period last year. Raydan says it’s suffering from low demand for manufactured product, low margin sales for chassis modifications and the overall decline of the Class 8 truck market.
Raydan has secured new financing, easing stress on cash flow and enabling it to grow its US trailer suspension project, the company reported.