Canam’s profits plummeted to $500,000 in the first quarter on poor weather

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SAINT-GEORGES, Que. – Canam Group missed expectations as its net income attributable to shareholders plummeted to $500,000 in the first quarter despite higher revenues as deliveries and profit margins suffered from poor weather in Eastern Canada and the United States.

The Quebec-based fabricator of steel products for the construction industry said it earned one cent per share for the period ended March 29, down from seven cents per share or nearly $3 million a year earlier.

Revenues increased 14 per cent to $239.3 million.

Canam was expected to earn nine cents per share on $249.7 million of revenues, according to analysts polled by Thomson Reuters.

Despite the weaker results, chief executive Marc Dutil said he was encouraged by the 34 per cent increase in Canam’s order backlog since Dec. 31 to $793 million, and the quality of the orders.

Sara O’Brien of RBC Capital Markets said the results were negative as the pre-tax operating income of $10 million decreased from $13 million last year and was off her $15-million estimate on lower gross margin.

North America’s largest fabricator of steel components operates 21 plants across the continent and employs more than 3,600 people in Canada, the United States, Romania, India and Hong Kong.

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