OTTAWA, April 15 (Reuters) - ADF Group Inc (DRX.TO) is “cautious, yet confident” about demand for the complex steel structures it fabricates, despite a big drop in its order backlog, the company said on Wednesday, .
ADF, which makes steel superstructures at its Quebec plant for buildings, bridges, stadiums and airports, said the current volume of tenders suggests its backlog will grow in coming quarters.
Shares in ADF Group gained 8 percent after it reported a 66 percent increase in fiscal 2009 revenue to C$98.9 million and 53 percent jump in earnings before interest, tax, depreciation and amortization, and foreign exchange to C$23 million.
The results were lifted by a C$165 million order backlog at Jan. 31, 2008, but that slipped to C$99 million at the same time this year.
ADF Group, whose current projects include the new World Trade Center in New York, is focused on North American markets but expanding into Africa, the Middle East, Asia and the Caribbean.
The stock gained 15 Canadian cents, or 8.3 percent, to C$1.95 on the Toronto Stock Exchange on Wednesday. The shares have lost nearly 65 percent of their value in the past 12 months.
ADF has recovered from tough times in 2003, when a U.S. construction slowdown led to big job cuts and the sale of a plant. Its shares slipped to penny-stock levels from more than C$15 in early 2002.
$1=$1.20 Canadian Reporting by Susan Taylor; editing by Rob Wilson