TORONTO, March 5 (Reuters) - Vector Aerospace Corp. RNO.TO announced a drop in fourth-quarter profit on Wednesday due to the impact of a strong Canadian dollar and unusual expenses during the last three months of 2007.
Vector, which specializes in repairing and overhauling airplanes and helicopters, reported a net earnings of C$3.1 million for the fourth quarter, or 8 Canadian cents a share, compared with C$4.2 million, or 11 Canadian cents a share, in the same period of 2006.
“The earnings decrease in the fourth quarter of 2007 was primarily a result of the continued strength of the Canadian dollar against the U.S. dollar and the British pound, and structures projects completed in the prior year not repeated in the current year,” the company said in a statement.
In the last three months of 2007, Vector recorded unusual expenses of C$3.9 million comprising a reorganization cost of C$900,000 and an increase to the provision for inventory obsolescence of C$3 million. ($1=$0.98 Canadian) (Reporting by Renato Andrade; Editing by Peter Galloway)