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March 6, 2007 |
Canam Group Posts Net Earnings of $40.7 Million or $0.88 per Share for 2006 |
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(BOUCHERVILLE, QC) — For Canam Group Inc. (TSX – CAM), specialized in the design and fabrication of construction products and solutions, the financial period ended December 31, 2006 was another good year, boosted by an 8.4% increase in sales to $740.6 million, from $683.4 million in 2005. Over this period, the company posted net earnings of $40.7 million, or $0.88 per share, compared with $38.7 million, or $0.96 per share, for the same year-earlier period.
Most of the business units pursued their market development efforts and improved their respective profit margins. The consolidated gross profit for fiscal 2006 was $173.9 million and the gross margin was 23.5%. Canam Group reduced its net debt by 22.1% such that by year’s end it stood at $88 million versus $113 million at the close of 2005. Shareholders’ equity was $343.4 million, bringing the net debt to equity ratio to 0.26, compared with 0.41 at the end of the previous year. Canam Group’s return on utilized assets was 13.1% in 2006, against 12.9% in 2005.
Net earnings for the fourth quarter were $12.1 million, or $0.25 per share, compared with $14.9 million, or $0.38 per share, for the corresponding 2005 quarter. Consolidated sales for the quarter rose 17% to $212 million, from $181.2 million the year before.
Canam Group’s president and chief operating officer Marc Dutil is satisfied that the company improved its position in the markets and moved a number of its strategic initiatives forward. He attributes the company’s fourth-quarter results, however, to certain unusual elements totaling $7.7 million before tax, notably losses incurred from the accounting treatment of foreign currency contracts, expenses related to plant closings and losses on the disposal of fixed assets.
Closing 2006 on a bright note, Canam Group’s business units reported an order backlog of $287 million, up 37% from $210 million a year earlier. According to industry figures, the infrastructures and non-residential sectors are expected to grow in 2007, and Canam Group has developed strategies to take advantage of business opportunities as they arise in the coming year.
The board of directors approved the payment of a quarterly dividend of $0.04 per common share payable on March 30, 2007 to shareholders of record on March 16, 2007.
Canam Group Inc. is an industrial company operating 11 plants specialized in the design and fabrication of construction products and solutions. The company employs close to 3,000 people in Canada, the United States, Romania and India and has partnerships with companies in Mexico, France, Saudi Arabia, the United Arab Emirates and Russia.
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| Source: |
| Jasmin Gosselin |
Vice President, Communications
Tel: 450-641-4000
Email:
www.canamgroup.ws
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Conference call
Canam Group will hold a conference call with financial analysts and media at 8 a.m. on Wednesday, March 7, 2007. The call will be broadcast live via the Internet at www.canamgroup.ws and www.cnw.ca. An archived conference call recording will be available at 1-888-509-0081 (access code 639578) until March 16, 2007. |
If you would like your name added to our distribution list for the Annual Report, Quarterly Reports, Annual Information Form and Notice of Annual Meeting or our distribution list for Press Releases, contact us, tel.: 450-641-4000, e-mail.
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