- EBITDA of $11.7 million compared to $11.6 million last year

- Operating income of $6.4 million, versus $6.8 million last year

- Funded backlog of $434 million

KITCHENER, ON, Oct. 30 /CNW Telbec/ - Heroux-Devtek Inc. (TSX: HRX), a leading Canadian manufacturer of aerospace and industrial products, today reported results for the second quarter of fiscal 2010 ended September 30, 2009. Unless otherwise indicated, all amounts are in Canadian dollars.

Consolidated sales for the second quarter were $76.6 million, versus $77.3 million for the same period last year. Operating income stood at $6.4 million, or 8.3% of sales, compared with $6.8 million, or 8.8% of sales, a year ago. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the second quarter was $11.7 million compared to $11.6 million last year. The Company reported net income of $3.5 million, or $0.11 per share, fully diluted, compared with net income of $4.1 million, or $0.13 per share, fully diluted, a year ago. Cash flow from operations amounted to $11.7 million this year, up 10.4% from $10.6 million last year.

For the first six months of the current fiscal year, consolidated sales totalled $158.7 million compared with $159.9 million a year earlier. Operating income was $13.8 million, or 8.7% of sales, versus $16.6 million, or 10.4% of sales, last year. Year-to-date, EBITDA stood at $24.5 million compared to $26.1 million last year. Net income reached $8.1 million, or $0.26 per share, fully diluted, compared with $9.8 million, or $0.31 per share, fully diluted, in the prior year. Cash flow from operations amounted to $23.5 million this year, up 5.4% from $22.3 million last year.

Fluctuations in the value of the Canadian dollar versus the US currency increased second quarter sales by $3.0 million or 3.9%, compared with last year, and had a negative impact of 0.1% on gross profit expressed as a percentage of sales. These fluctuations increased sales for the first six months of fiscal 2010 by $9.9 million, but reduced gross profit as a percentage of sales by 0.8%. The impact of currency movements on the Company's gross profit is mitigated by the use of forward foreign exchange sales contracts and the natural hedging from the purchase of materials made in US dollars.

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Financial highlights

(in thousands of dollars, except per share data)

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Quarters ended Six months ended

September 30, September 30,

2009 2008 2009 2008

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Sales 76,570 77,340 158,730 159,911

Operating income 6,358 6,796 13,829 16,599

Net income 3,518 4,056 8,060 9,754

Per share - basic and

diluted ($) 0.11 0.13 0.26 0.31

Cash flows from

operations 11,657 10,558 23,487 22,277

Weighted-average shares

outstanding (basic) 30,644,832 31,657,841 30,795,183 31,651,611

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"Heroux-Devtek continues to deliver solid results in spite of unfavourable conditions in the commercial aerospace and industrial markets," said President and CEO Gilles Labbe. "Our diversified business mix provides the Company with a solid cash flow generation that further solidifies our balance sheet. This financial soundness, combined with the quality of our products and customer service, and our proven track record for on-time delivery, position us as a leader in our markets.