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Revenue soars in Q2 for Quebec-based fabricator of steel structures

factory steel worker
Steel worker grinds and polishes a stainless steel tank top in a factory. Rick Bowmer/The Canadian Press

TERREBONNE, Que. – ADF Group Inc. (TSX:DRX) is reporting a big increase in both revenue and earnings in its most recent quarter.

The Quebec-based fabricator of steel structures for the construction industry said Thursday that it earned net income of $1.2 million or four cents per diluted share in the three months ended July 31 as revenue soared more than $7 million to almost $17.7 million.

That compared with net income of just $29,000 or less than a penny per share on revenue of $10.6 million in the second quarter of last year.

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“We have set two main objectives for the 2014 fiscal year: they are the renewal of the order backlog and the commissioning of our new plant in Great Falls, Mont.,” co-chairman and CEO Jean Paschini said in announcing the results.

“Since the beginning of the current fiscal year, we have signed over $70 million worth in new contracts and the construction of our new plant is in full swing. Considering the progress made over the first half of the 2014 fiscal year, we are confident that ADF will achieve its objectives.”

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As at July 31, ADF’s order backlog stood at $78 million and, based on that, the company estimates revenue in fiscal 2014 will be close to $80 million.

ADF Group Inc. is a North American leader in the design and engineering of connections, fabrication and installation of complex steel structures and heavy steel built-ups, as well as in miscellaneous and architectural metals for the non-residential construction industry.

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