Velan profits rise in first quarter.
Velan reported a net result attributable to its shareholders of $700,000, or three cents per share, for the three-month period ending May 31, 2012, an increase compared to $100,000, or a penny per share, for the same quarter a year ago.
Sales increased 10.4 per cent to $115.9 million in the first quarter from $105 million last year.
Velan explained that its financial results were affected by the acquisition of ABV, an Italian valve maker.
“Although ABV is continuing to post improved sales and results following the acquisition period, Velan expects the negative impact on its results to continue in the short term until some lower margin orders are shipped and replaced by more profitable orders,” said President and CEO Tom Velan in a release.
In the first quarter, net new orders declined to $97.7 million, a drop of 28.6 per cent compared to last year.
Velan also said it is working to improve its operational excellence and cost competitiveness.
The company employs more than 1950 people and operates manufacturing plants in nine countries.
On the Toronto Stock Exchange, on Thursday afternoon, Velan shares were worth $11.99, without change compared to their previous closing price.