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August 2, 2007 |
35% Increase - Canam Group Posts $13.3 M in Net Earnings for the Second Quarter of 2007 |
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(BOUCHERVILLE, QUEBEC) — Construction product manufacturer Canam Group Inc. (TSX: CAM) today reported net earnings of $13.3 million, or $0.27 per share, for the quarter ended June 30, 2007, up 35% from $9.9 million, or $0.22 per share, for the corresponding period in 2006. Consolidated sales rose by 32% to $218.9 million, compared with $166.2 million for the same quarter in 2006.
For the six-month period ended June 30, 2007, net earnings totaled $19.6 million, or $0.40 per share (based on 48,880,339 shares), up 28% compared with net earnings of $15.3 million, or $0.35 per share (based on 43,911,300 shares), for the same period in 2006. Consolidated sales for the first six months of 2007 increased by 21% to $380 million, from $314.9 million for the same period last year.
To the president and chief operating officer of Canam Group, Marc Dutil, these results show that Canam Group business units were able to take advantage of a high level of activity to increase their profitability. Mr. Dutil also underlined the acquisition of a 49% interest in United Steel Structures Limited in Guangzhou, China, which took place in the second quarter, and the recent purchase of the assets of Eastern Bridge, located in Claremont, New Hampshire, both of which will allow Canam Group to grow its presence in markets outside Canada.
The quarterly results include a net loss of $3.2 million stemming from Canam Romsa in Mexico, comprised of $1.4 million in operating losses and a $1.8 million reduction in the investment. Management expects that the reorganization that is underway in Mexico will rectify the situation by the end of 2007.
As at June 30, 2007, Canam Group had a healthy balance sheet, with shareholders’ equity totaling $350 million and a net debt of $105.9 million, translating into a debt-to-equity ratio of 0.30. For the second quarter of 2007, Pro forma EBITDA stood at $28.4 million, or 13.0% of sales, compared to $21.1 million, or 12.7% of sales, for the corresponding quarter.
The order backlog for all business units stood at $392 million as at June 30, 2007, which represents a 65% increase compared with $237 million as at June 24, 2006.
The board of directors has approved a quarterly dividend of $0.04 per share payable on September 28, 2007 to shareholders of record on September 14, 2007.
Canam Group is an industrial company operating 12 plants specialized in the design and fabrication of construction products and solutions. The company employs more than 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, Russia and China.
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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 the media on Thursday, August 2, 2007 at 4:30 p.m. The conference call will be webcast live at www.canamgroup.ws and www.cnw.ca. A replay of the conference call will be available until August 24, 2007 at the following number: 1-800-408-3053, access code 3227122 followed by the pound key (#). |
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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