August 20, 2007 – Vector Aerospace Corporation today announces results for the quarter ended June 30, 2007.
The interim consolidated financial statements and MD&A for the quarter ended June 30, 2007 are available on the Company’s website, www.vectoraerospace.com and on SEDAR, www.sedar.com.
The Company generated consolidated revenue from continuing operations of $88.8 million for the second quarter of 2007, an increase of $6.2 million from the same period last year. Earnings from continuing operations, before interest, tax, and unusual items, were $5.2 million for the second quarter of 2007, a decrease of $1.5 million from the same period last year. The earnings decline in the second quarter of 2007 was primarily a result of lower earnings in the helicopter segment coupled with an increase in corporate costs relating to business development activities and foreign exchange losses realized as a result of the strong Canadian dollar. Net earnings for the second quarter of 2007 were $2.3 million ($0.06 per share) compared to $4.7 million ($0.13 per share) for the same period last year.
In commenting on the quarter’s results, Chairman, President and CEO Donald Jackson stated: “Earnings in the quarter were below the prior year as a result of lower activity levels in the helicopter segment coupled with increased business development costs and foreign exchange losses. I am pleased with the improved performance of both Atlantic Turbines and Sigma. The Company continues to vigorously pursue the required approvals necessary to complete work on the Royal Saudi Air Force contract. We anticipate higher earnings in the second half of 2007 as compared to the first half. With the strong Canadian dollar and current activity levels, we expect the earnings for fiscal 2007 to be similar to 2006. We are pleased to have been named the Prefered Bidder for the purchase of the rotary wing and components business of DARA by the UK MoD. This potential acquisition offers significant expansion opportunities for Vector in the near term. Over the longer term the prospects for Vector continue to remain positive and exciting”.