EDMONTON, Alta. — The demand for Air Link products has been credited with Raydan Manufacturing’s ability to produce a $651,239 profit in the year ended April 30, compared with the same period a year prior.
During the year the company completed the construction of a new Truck/Trailer Parts and Repair Centre in Alberta and acquired a $6 million business in Ontario to establish Raydan in Eastern Canada.
Profitability was impaired this year due to costs and one-time events including legal fees, engineering costs, audit fees, new accounting software, setup and moving and foreign exchange losses, noted the manufacturer.
Gross margin decreased from 22.5% in 2005 to 15.3% in 2006, due to a decrease in the US dollar and an increase in labour costs. Engineering costs increased 41% because of the company’s desire to achieve the National Safety Mark designation. Once the designation has been achieved the engineering costs will be reduced as well, predicted company officials.
“With all of this activity, there were significant costs associated with each, which negatively affected the earnings for the 2006 year,” said Ray English, president and CEO of Raydan Manufacturing. “As changes are now complete, management will be scrutinizing all costs and expenses to assure policies and procedures are being followed to ensure that 2007 will again be a profitable year.”
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