Velan Inc. Reports Consolidated Earnings Results Third Quarter and Nine Months Ended November 30, 2016
January 13, 2017 at 01:08 am IST
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Velan Inc. reported consolidated earnings results third quarter and nine months ended November 30, 2016. For the quarter, the company reported sales $80.4 against $104.0 a year ago. Net income attributable to multiple and subordinate voting shares was $1.5 against $3.6 a year ago. Net income per basic and diluted share was $0.07 against $0.16 a year ago. Adjusted net earnings, which excludes from net earnings the after-tax impact of the restructuring costs incurred in the prior year quarter, amounted to $1.5 million or $0.07 per share compared to $5.2 million or $0.23 per share last year. The $3.7 million decrease in adjusted net earnings is primarily attributable to a lower sales volume and an increase in costs recognized in connection with the company's ongoing asbestos litigation, which were partially offset by gross margin improvements and mark to market foreign exchange gains on certain forward contracts. Sales were negatively impacted by the decreased bookings received over the last fiscal year as well as delays in shipments of certain large project orders caused by various customer-related, supply chain and internal operational issues.
For the nine months, the company reported sales of $228.9 against $318.7 a year ago. Net income attributable to multiple and subordinate voting shares was $4.0 against $11.5 a year ago. Net income per basic and diluted share was $0.19 against $0.52 a year ago. Adjusted net earnings, which excludes from net earnings the after-tax impact of the restructuring costs incurred in the prior year, amounted to $4.0 million or $0.19 per share compared to $13.1 million or $0.59 per share last year. The $9.1 million decrease in adjusted net earnings is primarily attributable to a lower sales volume which was partially offset by gross margin improvements and decreased administration costs. Sales were negatively impacted, particularly in Italian and North American operations, by the decreased bookings received over the last fiscal year. Delays in shipments of certain large project orders caused by various customer-related, supply chain and internal operational issues, particularly in North American operations, also had a negative impact on sales for the period.
Velan Inc. is a Canada-based manufacturers of industrial valves. The Company designs, manufactures and markets a range of industrial valves for use in industry applications, including power generation, oil and gas, refining and petrochemicals, chemicals, liquid natural gas and cryogenics, pulp and paper, geothermal processes and shipbuilding. Its products include Quarter-turn valves, Gate, globe, and check valves, Cryogenic valves, HF Acid valves, Steam traps, Bellows seal valves and Velan ABV Valves. Its services include research and development, maintenance manuals (IOMs), spare parts and service locations. The North American operations comprising two manufacturing plants in Canada, as well as one manufacturing plant and one distribution facility in the United States. Its overseas operations include manufacturing plants in France, Italy, Portugal, Korea, Taiwan, India, and China. The Companyâs operations also include a sales operation in Germany.