EDMONTON, Dec. 29 /CNW/ - Raydan Manufacturing Inc. (TSX-V: RDN) has provided financial results for the second quarter ended October 31, 2009. The Company's performance continued to be weakened by the sluggish Canadian economy and the troubled world economic situation. Management finds reason to be optimistic going forward as the Ontario Service Shop returns to full operation following the disastrous fire in June; commencement of shipments of trailer suspensions destined for the US Marine Medium Tactical Vehicle Replacement Trailer Project for Raydan Alberta; and increased capacity for twin steer work at the new Raydan Ontario facility.
Revenue declined by 48% to $4,874,562 with a net loss of $1,519,463 compared with revenue of $9,510,565 with a loss of $747,084 for the same period one year ago. Operations continue to be hampered by the low demand for manufactured product, low margin sales for chassis modifications and the decline in the Class 8 truck market.
Sale of the Alberta service facility property resulted in a significant cash injection. However, cash losses over the course of the fiscal year to date have eroded much of that cash gain. The Canadian Western Bank provided additional financing to assist with the start up of the US trailer suspension project, easing the stress on the Company's cash flow.
About Raydan Manufacturing Inc
Raydan Manufacturing Inc based in Edmonton, Alberta, develops and produces specialized suspension and coupling systems for trucks, trailers and heavy equipment. Installations are completed at the Company's chassis modification centre in either Alberta or Ontario. Established in 1992, Raydan exports its innovative, high-quality products to end-users and original equipment manufacturers (OEMs) in the heavy-duty truck, truck crane, fire/rescue and other severe use sectors around the world.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
This new release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. Potentially, many factors could cause our actual results to vary materially from those described herein as intended, planned, anticipated or expected. Raydan Manufacturing Inc. does not intend and does not assume any obligation to update these forward-looking statements.
SOURCE RAYDAN MANUFACTURING INC.
For further information: For further information: Raydan Manufacturing Inc: Joan Richardson, Tel: (780) 955-2859, Toll Free: 1-888-472-9326, email@example.com, www.raydanmfg.com