ADF Group reports Q2 loss, revenue down from year ago, citing tariff uncertainty | iNFOnews | Thompson-Okanagan's News Source
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ADF Group reports Q2 loss, revenue down from year ago, citing tariff uncertainty

The corporate logo of Groupe ADF Group Inc. is shown. ADF Group Inc. reported a loss of $532,000 in its latest quarter compared with a profit of $1.9 million. The steel fabrication company says the loss amounted to two cents per share for the quarter ended July 31 compared with a profit of six cents per share a year ago. THE CANADIAN PRESS/HO
Original Publication Date September 13, 2018 - 7:01 AM

TERREBONE, Que. - The head of steel fabricator ADF Group Inc. says the company swung to a loss in the latest quarter after tariffs imposed by the U.S. on steel weighed on business.

"The loss of major contracts earlier this year, following the initial uncertainty resulting from the U.S. import duties announcement, played havoc on our fabrication schedule and manpower utilization," said company CEO Jean Paschini on an earnings call Thursday.

The company reported a loss of $532,000 in its latest quarter ending July 31, compared with a profit of $1.9 million a year ago. Losses for the last two quarters totalled $1.4 million compared with earnings of $2.3 million for the same stretch last year.

ADF, which manufactures large complex steel structures, says the loss for the last quarter amounted to two cents per share compared with a profit of six cents per share a year ago.

The U.S. imposed a 25 per cent tariff on imports of steel and 10 per cent tariff on aluminum at the end of May after initially giving Canada an exemption.

ADF, which drew about 85 per cent of revenues from the U.S. in the last quarter, temporarily laid off 50 employees in March after losing out on major bids for U.S. projects due in part to the uncertainty over tariffs.

In June, the company rolled out a work-share program that had employment insurance benefits make up for the reduced work hours for employees.

Revenue for the last quarter totalled $32.2 million, down from $45.3 million in the same quarter last year.

Paschini said the company expects better results in the second half of the year after securing more work despite the tariff uncertainties.

The company's order backlog stood at $141.1 million at July 31, compared with $85.5 million at Jan. 31.

Companies in this story: (TSX:DRX)

News from © The Canadian Press, 2018
The Canadian Press

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