(Montreal) Velan saw its revenues decline by 16.5% in the second quarter, which ended in a net loss of 3.7 million US, while it had generated a net profit of 5 million US for the same period a year earlier.
Posted yesterday at 4:43 p.m.
The Montreal-based company, specializing in the manufacture of industrial valves, attributed the decline in its turnover on Friday to the constant decline in the average rate of the euro against the American dollar and to higher deliveries during the second quarter of 2021 stemming from a major contract in Italy.
In addition, Velan shipped a large order during the second quarter that was delayed by logistical glitches, forcing the postponement of recording revenue of US$10.9 million in the third quarter.
Velan’s revenue was $85.1 million for the quarter ended Aug. 31, which compared to revenue of $101.9 million for the same period last year.
The company said it is still struggling in the current quarter with supply chain delays and customer issues, which are hurting revenue.
Velan’s loss per share for its most recent quarter was 17 cents US, compared to earnings per share of 23 cents US a year earlier.
Earnings before tax, interest and amortization fell to US$1.4 million in the most recent quarter from US$10.7 million a year earlier, which the company attributed mainly to the reduction in its gross margins, which went from 30.8% last year to 27.6%, and an increase in its administrative expenses.