EDMONTON, March 29 /CNW/ - Raydan Manufacturing Inc (TSX-V: RON) has provided financial results for the third quarter ended January 31, 2010. The Company's performance continued to be weakened by the sluggish Canadian economy and the troubled world economic situation. Shipments of trailer suspensions destined for the US Marine Medium Tactical Vehicle Replacement Trailer Project commenced in November 2009, providing a substantial revenue injection. The single axle suspension project is well underway with Patent Pending granted by the Canadian Intellectual Property Office. Marketing of this new product will commence in fiscal 2011, with various applications geared to military use and the fire apparatus industry.
Raydan Ontario was reclassified as a discontinued operation and both locations were closed effective February 19, 2010, through the appointment of a Receiver by the Company. This move will reduce revenue in the fourth quarter, with a corresponding decrease in expenses. Operationally, the closure of Raydan Ontario should have a positive effect on the Company's operational net income.
Revenue declined by 50% to $4,322. The third quarter has been adjusted for discontinued operations, making comparisons with the previous year difficult. Operations continue to be hampered by the reduced demand for manufactured product, low margin sales for the chassis modifications and the decline in the class 8 truck market. Management will focus on developing customized suspensions for niche markets with higher margins as the primary means to increase Company profitability.
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 Alberta. 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.
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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, firstname.lastname@example.org, www.raydanmfg.com