October 29, 2010 / 12:09 PM / in 7 years

UPDATE 1-Heroux-Devtek Q2 profit misses market estimates

* Q2 EPS C$0.08 vs est C$0.10

* Q2 rev C$83.2 mln vs est C$84.6

* Sees H2 2011 sales 15-20 pct higher than in H1

Oct 29 (Reuters) - Aerospace and industrial products maker Heroux-Devtek Inc HRX.TO posted quarterly results that missed estimates, hurt in part by weak performance at its landing gear products unit.

The company, however, forecast sales in the latter half of 2011 to be 15-20 percent higher than the first half, driven by its Eagle Tool & Machine and other acquisitions. For the July-September quarter, net income fell to C$2.6 million, or 8 Canadian cents a share, from C$3.5 million, or 11 Canadian cents a share.

Analysts on average had expected the company to earn 10 Canadian cents, according to Thomson Reuters I/B/E/S. Revenue rose about 9 percent to C$83.2 million but trailed estimates of C$84.6 million, mainly due to unfavourable currency impact, the company said in a statement.

“Our newly acquired U.S. landing gear products operations had a solid contribution during the second quarter, which partially offset lower military repair and overhaul throughput in domestic landing gear products operations,” Chief Executive Gilles Labbe said in a statement.

Shares of Quebec-based Heroux-Devtek, which have shed over 5 percent in value since the company posted first-quarter results that trailed expectations in August, closed at C$5.75 Thursday on the Toronto Stock Exchange. (Reporting by Gowri Jayakumar in Bangalore)

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