EDMONTON, Alta. — Raydan Manufacturing has reported a third quarter revenue increase of 127% to $5,562,385 with a net profit of $23,641, compared to revenue of $2,450,343 and a net loss of $181,342 for the same period one year ago.
The third quarter for the Edmonton-based manufacturing company ended Jan. 31 and working capital remained strong at $2.5 million compared to $1.9 million at the end of fiscal 2006.
Operating cash flow from operations in the quarter was a positive $58,222 compared to a negative $(2,601) for the same period in fiscal 2006.
“We are pleased with the year over year increase in revenue and profitability in what is traditionally our slowest quarter,” stated Ray English, president and CEO of Raydan. “Additionally, Raydan continues to make significant strides in bringing its manufactured products to the attention of international customers.”
The product mix was steady with manufactured products accounting for 55% of total sales and parts and service contributing 45%.
Established in 1992, Raydan develops and produces specialized suspension and coupling systems for trucks, trailers and heavy equipment, as well as a chassis modifications centre and a military service facility.
Raydan’s Alberta operations grew by 32% with contributions from both the manufacturing and parts and service divisions.
Raydan’s Ontario operations contributed to revenue growth with Sturdy Truck Body (Sturdy) increasing revenue to approximately $200,000 per month from $45,000 per month when acquired in April 2006. Delta Spring (Delta) has faced several challenges, most notably an inability to grow due to space constraints, resulting in inefficiencies.
Raydan’s strategic plan was for both Sturdy and Delta to consolidate into a single new facility by June 2007 and incorporate a new chassis modification centre to bring Raydan’s products into Eastern Canada. Negotiations for a new facility have progressed slowly but management is confident an agreement will be concluded in time for the companies to relocate by the fall of 2007.
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