NISKU, Alta. — Raydan Manufacturing’s reported financial results for the six-month period ended Oct. 31 saw a drop in the company’s performance from last year.
Quarterly revenue was $4,494,113 with a loss of ($460,090) compared to revenue of $6,501,883 and a net profit of $351,267 for the same period one year ago. Revenue for the six-month period was $9,997,030 with a loss of ($378,231) compared to revenue of $12,308,274 and a net profit of $453,539 for the same period one year ago. Raydan officials have said the company remains focused on controlling all discretionary spending.
The vocational truck market dropped significantly in 2007 due to the pre-buy of 2006 in response to the emission control measures to be introduced in 2008. While Raydan is not overly dependent on the oil industry, the downturn experienced by that sector in Alberta has had a ripple effect throughout the entire economic spectrum. Most areas are now recovering and by March, it is expected that the Alberta economy will rebound.
Raydan remains positive about its operations, however is concerned about the slowdown in activity in the oil and gas sector in Western Canada. In addition, it is difficult to predict the direction of the US economy going into 2008. The company continues to diversify its operations and is in the process of consolidating its Ontario operations into a new facility in which a chassis mod shop will be incorporated. This will expand sales into Eastern Canada and the US in an attempt to improve productivity and profitability.
Refurbishment work for the Canadian military continues and management is exploring new opportunities within the vast military sectors in Canada and the US. ArvinMeritor has commenced production of the company’s proprietary suspension system in Monterey, Mexico and the company expects to see sales grow this fiscal year.
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