July 30, 2008 / 9:04 PM / 10 years ago

UPDATE 1-MDA's profit dented by blocked asset sale

TORONTO, July 30 (Reuters) - Data-processing and space technology company MacDonald, Dettwiler and Associates Ltd MDA.TO reported a drop in quarterly profit on Wednesday, as costs related to the blocked sale of one of its units ate into results.

The company, which earlier this year saw the planned sale of its space robotics and satellite technology business blocked by the Canadian government, earned C$13.4 million ($13.1 million), or 33 Canadian cents a share, in the three months ended June 30. That was down from a profit of C$19.8 million, or 45 Canadian cents a share, in the same period a year earlier.

MDA said that excluding the costs related to the unit sale as well as non-cash adjustments related to stock compensation, earnings would have been 62 Canadian cents a share, compared with 55 Canadian cents a share a year before.

Revenue rose to C$321.4 million from C$311.9 million a year earlier. If average foreign exchange rates had stayed the same as a year ago, revenue would have been C$338 million, it said.

In May, the Canadian government said it would block the proposed $1.33 billion sale of MDA’s satellite technology business to U.S. rocket-maker Alliant Techsystems Inc ATK.N.

Canada had first halted the deal in part because it feared it might lose control over top-secret satellite images.

It was the first time Ottawa has prevented the sale of a domestic company to a foreign buyer.

Vancouver, British Columbia-based MDA had also planned to sell to Alliant a unit that makes robotics for the International Space Station.

MDA released its results after markets closed. During the day, its shares fell 52 Canadian cents to close at C$32.98.

$1=$1.02 Canadian Reporting by Wojtek Dabrowski; editing by Rob Wilson

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below