August 4, 2011 / 10:53 AM / 6 years ago

UPDATE 1-Canam Group posts wider-than-expected Q2 loss

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Aug 4 (Reuters) - Canadian construction equipment maker Canam Group Inc posted a wider-than-expected quarterly loss, hurt mainly by margin compression from a slowdown in the construction sector and suspended its dividend payout.

“Due to the current economic situation, the board of directors of Canam Group considers it is prudent to suspend dividend payouts,” the company said in a statement.

Canam, which designs and manufactures welded beams, joists and girders, reported a second-quarter loss of C$5.8 million or 13 Canadian cents a share, compared with a loss of C$1.7 million, or 4 Canadian cents a share, a year ago.

Revenue rose 21 percent to C$218.5 million.

Analysts, on average, had expected the company to post a loss of 7 Canadian cents a share, on revenue of C$205.7 million, according to Thomson Reuters I/B/E/S.

Shares of the Boucherville, Quebec-based company closed at C$6.19 on Wednesday on the Toronto Stock Exchange. (Reporting by Aftab Ahmed in Bangalore; Editing by Joyjeet Das)

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