Velan Reports Strong 1st Quarter Profits
Monday, July 13, 2009
Velan reported strong financial results for the first
quarter ended May 31, 2009, as the Company benefited because the US dollar was
on average 20.7% stronger than the Canadian dollar compared to last year. The
net earnings for the quarter were $14.3 million, and earnings per share were 64
cents. The Company had previously changed its fiscal year end from May 31 to
the last day of February, effective 2009.
Sales for the quarter were $120.4 million, which is 13.6%
less than the previous year but 6.7% higher after adjusting for the sales of
the Italian joint venture in last year's figures. The company sold its 50%
ownership in the joint venture in July 2008. Sales continue to be negatively
impacted by delays on several large contracts due to the effects of the global
financial crises. Delayed orders resulted in approximately $37 million of
inventory of completed valves in the North American plants that couldn't be
shipped for various reasons before May 31, 2009. More…
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