November 12, 2009 / 1:24 PM / 8 years ago

UPDATE 1-Canada's CVTech Q3 profit falls 36 pct

* Q3 EPS C$0.03 vs C$0.05 last year

* Q3 revenue up 8 pct to C$44.6 mln * Backlog of about C$500 mln as of Nov. 11

Nov 12 (Reuters) - CVTech Group Inc CVT.TO, a Canadian electrical services provider, reported a 36 percent drop in its third-quarter profit, hurt by absence of high-margin revenue related to natural disasters in the energy sector.

The company, which constructs and repairs electrical transmission and distribution lines, posted third-quarter net earnings of C$1.8 million ($1.72 million), or 3 Canadian cents a share, compared with C$2.8 million, or 5 Canadian cents a share, last year.

Revenue rose 8 percent to C$44.6 million, boosted by the acquisition of Riggs Distler & Co Inc.

CVTech had acquired Riggs Distler, a maintenance and construction services provider, in July to boost its presence in North American industrial and utility markets.

One analyst had expected the company to earn 3 Canadian cents a share on revenue of C$67.8 million, according to Thomson Reuters I/B/E/S.

Quebec-based CVTech said it has a backlog of about C$500 million as of Nov. 11.

Chief Executive Andre Laramee said CVTech is pursuing discussions with Tata Motors (TTM.N) for an agreement to manufacture CVT systems for Tata’s Nano car.

Shares of CVTech closed at C$1.75 Wednesday on the Toronto Stock Exchange.

$1=1.045 Canadian dollar Reporting by R. Manikandan in Bangalore; Editing by Pradeep Kurup

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