Raydan Manufacturing Reports 2009 Q1 Financial Results



    EDMONTON, Sept. 29 /CNW/ - Raydan Manufacturing Inc. (the "Company")
(TSX-V: RDN) reported financial results for the first quarter ended July 31,
2008.
    Revenue was $4,653,808 with a net loss of ($623,134) compared to
$5,502,917 and net income of $57,360 for the same period one year ago. Gross
margin as a percentage of sales for the quarter was 10% compared to 20% for
the same quarter last year. This period, general and administrative expenses
were $1,112,996 compared to $1,013,258 from the same quarter last year, an
increase of $99,738. Raydan's financial position at July 31, 2008 remains
strong with an adjusted current ratio of 1.6 to 1 and a working capital
position of $2,849,269. Management has undertaken a comprehensive review of
the profitability of all divisions to ensure the Company is earning an
acceptable return.

    
         First quarter ended July 31            2008             2007

         Revenue                        $  4,635,808     $  5,502,917
         Gross Profit                   $    465,829     $  1,075,259
         Net Income                     $   (623,134)    $     57,360
         EPS (basic)                    $     (0.039)    $      0.004
         Shares outstanding (basic)       16,052,960       16,052,960

    The quarter ending July 31, 2008 was below expectation with the
anticipated recovery delayed into the second quarter due to weakness in the US
and Ontario economies. The demand for Air Link products and the resulting
Chassis Modification workload declined with the slower new truck sales market.
In 2009 the Company expects a recovery of the class 8 truck sales with the
pre-buy of the 2009 models given the higher emission standards set to come
with the 2010 models.

    Recent corporate developments:

    1) Sturdy Truck Body has been challenged in its efforts to become a
    contributing member of the Raydan organization by the constraints of its
    present location. In June, arrangements were completed to lease a larger,
    more efficient, cost effective facility in Baden, Ontario. Plans are
    underway to move in October 2008, allowing for expanded chassis
    modification work and the pursuit of military contracts.

    2) The Company has been granted an extension to June 2009 of the current
    Canadian Military contract at a rate adjusted for inflation and as part
    of the extension additional military units have been added to the
    contract. The Company is also bidding for a 3 year equipment re-life
    project for the Department of Defense to be awarded by the end of the
    second quarter.

    3) During the quarter the Company strengthened its management team by
    adding Susanne Nichols, Neil Mardel and Derrek Dobko. Susanne has a
    strong background in sales and service as well as marked organizational
    and management skills. Neil has commanding experience in the automotive
    and aerospace industries. As well, he has acted as Program Manager for a
    number of projects involving heavy equipment and military contracts.
    Derrek has been appointed as Controller and with his senior accounting
    experience has been tasked with providing economic direction returning
    Raydan to a level of profitability and a satisfactory return to
    shareholders.

    4) In 2007, Raydan was engaged by a prime contractor to the US Military
    to design and engineer a custom suspension. This unique undercarriage,
    complete with a high articulation Air Link suspension has been subjected
    to stringent durability and performance testing at the Nevada Automotive
    Test Center. It has met and/or exceeded all expectations. The awarding of
    this project is expected by the end of 2008 with the project to commence
    by late fall 2009 and continuing for a term of three years.

    About Raydan Manufacturing

    Raydan operates in Alberta under Raydan Manufacturing Inc (hereafter
referred to as "Raydan Alberta") and in Ontario under Raydan Manufacturing
Ontario Inc. (hereafter referred to as "Raydan Ontario"). The Raydan Alberta
operation includes: the Manufacturing and Chassis modification division, Parts
and Service division and Military refurbishment division. The Raydan Ontario
operation includes: the Parts and Services division and the Chassis
Modification division. Raydan exports its innovative, high-quality products to
end-users and original equipment manufacturers (OEMs) in the heavy-duty 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 news 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 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.

    %SEDAR: 00014612E




For further information:

For further information: Raydan Manufacturing Inc., Derrek Dobko, Tel:
(780) 955-2859, Toll Free: 1-888-472-9326, Ddobko@raydanmfg.com,
www.raydanmfg.com; Business Development, John Lewis, Linear Capital Corp.,
(416) 364-2266, jrlewis@linearcapital.com, www.linearcapital.com

Organization Profile

RAYDAN MANUFACTURING INC.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890