Avcorp Industries Inc - Third Quarter Fiscal 2000 Results

05 September 2000

Avcorp Industries Inc. announced results for the 3rd quarter ended June 30, 2000. Revenues increased 8.6% for the quarter and 4.3% year to date. The Company reports a 3rd quarter loss of $8,471,000 as compared to a loss of $357,000 last year. The Integrated Products Division, with locations in Laval and Granby, Quebec, is profitable, growing and winning new orders. However, its profits are more than offset by losses at the Aerostructures Division located in Delta, BC. In June, the Aerostructures Division and the Corporate Office were restructured to focus more on reducing program costs while maintaining delivery and quality requirements. The restructuring, which reduced the number of employees at the Company's Delta, BC facility by 45 people, decreases annual operating costs by approximately $2.0 million. In addition, close attention is also been given to all aspects of cash management. Management is continuing to focus its efforts in five key areas and expects reductions in annual costs of a further $2.2 million by the end of the fourth quarter. John Nicholson, President and CEO, states, "We remain committed to our strategy of becoming a large, high-quality, low-cost supplier of complex parts and assemblies to the aircraft manufacturing industry. We have the facilities, equipment and high-caliber people who I believe will continue to make the necessary commitments. We are taking actions to be profitable. Our order backlog is strong, the fourth quarter will benefit from the cost-reduction actions taken in the third quarter and we are optimistic about substantially-improved results in the first quarter of fiscal 2001." Avcorp Industries Inc. is a Canadian aerospace industry manufacturer. The Company is a single-source supplier for design, machining, fabrication and assembly of metal, composite and plastic components for global aerospace markets and comprises of two divisions: Aerostructures Division in British Columbia and the Integrated Products Division in Quebec.

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