June 23rd, 2018

Fabricated steel company ADF Group posts Q1 loss as revenue drops

By The Canadian Press on June 13, 2018.

The corporate logo of Groupe ADF Group Inc. (TSX:DRX) is shown. THE CANADIAN PRESS/HO

TERREBONNE, Que. – ADF Group Inc. booked a $910,000 net loss in its fiscal first quarter as revenue dropped by more than 40 per cent year-over-year.

The Quebec-based steel fabrication company says the loss for the quarter ended April 30 amounted to three cents per share and compared with year-earlier net income of $354,000, or one cent per share.

ADF says its revenue was down because of a drop in business volume, as certain fabrication projects were nearly completed before newly signed contracts were started.

As of April 30, its order backlog was $158.7 million, up from $85.5 million at Jan. 31. The backlog includes $95 million worth of contract awards in the United States that were announced on April 23.

ADF chief executive Jean Paschini says the company is closely monitoring the potential impact of U.S. tariffs on imported steel from Canada, the European Union and Mexico but there are still a number of potential projects to pursue.

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