EDMONTON, Sept. 29 /CNW/ - Raydan Manufacturing Inc. (the "Company") (TSX-V: RDN) reported financial results for the first quarter ended July 31, 2008.
The first quarter of the fiscal year 2010 was weak and is expected to remain weak with the current state of the Canadian and world economies until the third quarter when the Company delivers the first 50 suspension kits for the US Marine Trailer suspension project.
Revenue declined 44% to $2,592,513 with a net loss of ($559,096) compared to revenue of $4,635,808 and a loss of ($623,134) for the same period one year ago. Operations in this period were hampered by the low demand for manufactured products, completion of a military refurbishment contract, limited service revenue due to a fire in the Raydan Ontario Service shop in June/09, low margin sales from the Chassis Modification division and the closing of Alberta's parts and service business.
With the decline in revenue management is reviewing and undertaking cost cutting iniatives to reduce overheads and to improve operational efficiency with the primary focus at Raydan Ontario.
Management continues to aggressively focus on the customized modified suspension for military purposes for the US Marine Corp Medium Tactical Vehicle Replacement Trailer Project as the best opportunity for the future growth and profitability of the Company.
In the development stage the engineering group continue to work on a single axle suspension project which is anticipated to have applications with the military and emergency vehicles and once completed will have a significant impact on future earning potential.
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.
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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.
SOURCE RAYDAN MANUFACTURING INC.
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, firstname.lastname@example.org, www.linearcapital.com