EDMONTON, Alta. — Canadian suspension builder, Raydan Manufacturing, has concluded a profitable first quarter despite a slowdown in Western Canadian oilpatch activity.
The companys fiscal first quarter ended July 31. Raydan recorded revenues of just over $5.5 million with a net profit of $57,359. That compares to revenues of $5.8 million and a profit of $102,272 during the same period last year.
Gross margin as a percentage of sales was down slightly 19% compared to 22% last year.
Raydan remains positive about its operations however is concerned about the slowdown in activity in the oil and gas sector in Western Canada, the company said in a release. In addition, it is difficult to predict the direction of the US economy going into 2008.
The company said it continues to diversify its operations and is in the process of consolidating its Ontario operations into a new facility which will also house a chassis modification shop. The changes should boost Eastern Canada and US sales, the company reported.
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