EDMONTON, Aug. 20 /CNW/ - Raydan Manufacturing Inc (the Company) (TSX-V:RDN) reported financial results for the fiscal year ended April 30, 2010.
The year end resulted in revenue declining 34% to $6,894 from $10,476 in the previous year. The loss for 2010 was $2,814, including $1,745 from discontinued operations compared to the loss in fiscal 2009 of $564, including $899 from discontinued operations. The decline in revenue is attributed to the low demand for manufactured product, the reduction in new truck sales in North America and the placing of the Ontario operation into voluntary receivership.
(in CAD dollars 000's) 2010 2009
Revenue $ 6,894 $ 10,476
Gross Profit $ 1,097 $ 2,334
Income (Loss) Continuing Operations $ (1,069) $ 334
Loss Discontinued Operations $ (1,745) $ (899)
Net Loss $ (2,814) $ (564)
EPS (basic) from continuing operations $ (0.065) $ 0.020
EPS (basic) from discontinued operations $ (0.106) $ (0.055)
EPS (basic) total $ (0.171) $ (0.035)
Shares outstanding (basic) 16,353 16,353
Operations for fiscal 2010 have been hampered by the continued low demand for manufactured product. However, commencement of the US Marine trailer suspension project in November 2009 has resulted in improvement to the Company's performance for the last half of this reporting period. Chassis Modification sales were low due to sluggish new truck sales in North America. The Raydan Ontario operation was placed into receivership in February 2010 and has been reclassified as a discontinued operation for this year and all comparative years. Management took this action to cut the losses being generated by Raydan Ontario. The loss resulting from the liquidation of assets has generated a substantial non-operating loss, which has been recorded in this period. The resulting elimination of future operating losses will have a positive affect on Raydan's overall financial results in the future. The Receiver will remain in place until all requirements of Service Canada have been met.
About Raydan Manufacturing
Raydan Manufacturing Inc, based in Edmonton, Alberta, develops and produces specialized suspension and coupling systems for trucks, trailers and heavy equipment, as well as operates a chassis modification centre. Established in 1992, 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 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, Office Manager/Investor Relations, 780 955 2859, 888 472 9326, email@example.com, www.raydanmfg.com; Derrek Dobko, Controller, 780 955 2859, 888 472 9326, firstname.lastname@example.org, www.raydanmfg.com