Heroux-Devtek Will Record a Non-Cash Charge Related to the Pause on the Bombardier Learjet 85 Program

Jan. 27, 2015
It will record a non-cash and non-recurring charge of $7.9 million before taxes, equivalent to $5.8 million or $0.16 per diluted share after taxes, in its financial results for the third-quarter ended December 31, 2014.

LONGUEUIL, QUEBEC--(Marketwired - Jan. 27, 2015) - Heroux-Devtek Inc. (TSX:HRX), ("Heroux- Devtek" or the "Corporation"), a leading international manufacturer of aerospace products, today announced that it will record a non-cash and non-recurring charge of $7.9 million before taxes, equivalent to $5.8 million or $0.16 per diluted share after taxes, in its financial results for the third-quarter ended December 31, 2014. These results will be released on February 5, 2015 before the market opens.

This charge represents the impairment of capitalized development costs on the Learjet 85 business aircraft program and follows the announcement by Bombardier Inc. (TSX:BBD.B) on January 15, 2015 to pause the Learjet 85 program due to "the continued weakness of the Light business aircraft category since the economic downturn and the downward revision of Bombardier's business aircraft market forecast". Heroux-Devtek is the developer and supplier of the complete landing gear system for the aircraft.

PROFILE

Heroux-Devtek Inc. (TSX:HRX) is a Canadian company specializing in the design, development, manufacture and repair and overhaul of landing gear and actuation systems and components for the Aerospace market. The Corporation is the third largest landing gear company worldwide, supplying both the commercial and military sectors of the Aerospace market with new landing gear systems and components, as well as aftermarket products and services. The Corporation also manufactures electronic enclosures, heat exchangers and cabinets for suppliers of airborne radar, electro-optic systems and aircraft controls through its Magtron operations. On a pro forma basis, approximately 75% of the Corporation's sales are outside Canada, including 50% in the United States. The Corporation's head office is located in Longueuil, Quebec with facilities in the Greater Montreal area (Longueuil, Laval and St-Hubert); Kitchener and Toronto, Ontario; Springfield and Cleveland, Ohio; Wichita, Kansas; and Runcorn, Nottingham and Bolton, United Kingdom.