Hammond Power (TSX:HPS.A) profit cut in half amid tough market conditions; revenue improves – Dominion Lending Centres Clearlease

Hammond Power (TSX:HPS.A) profit cut in half amid tough market conditions; revenue improves - Dominion Lending Centres Clearlease

VANCOUVER, BRITISH COLUMBIA – (April 28, 2011) Clearlease Reports Hammond Power Solutions Inc. (TSX:HPS.A) says its first-quarter profit was down 47 per cent compared with last year as a result of fluctuating material costs, competitive pricing in the market and higher sales and administrative expenses.

Net income dropped to just under $1.6 million from almost $3 million, while earnings per share dropped to 14 cents from 25 cents, the company announced Wednesday.

Hammond Power is the North American leader for the design of custom electrical engineered magnetics as well as the leading manufacturer of standard electrical dry type transformers

Its sales improved by 19 per cent to $52.8 million from $44.3 million, due to higher shipments to both American and Canadian markets. Gross margins fell to 24.3 per cent from 26.7 per cent in the first quarter of 2010.

Total selling, general and administrative expenses were $10.1 million, up $1.8 million or 21.8 per cent from a year earlier, due to higher sales commissions, the acquisition of Euroelettro SpA in Vicenza, Italy, and stock option expenses.

Margins are also feeling a negative impact from the lower U.S. dollar.

“We have seen the return of marked volatility presumably as a result of these uncontrollable events affecting material costs, market pricing, and booking activity from certain markets,” said Bill Hammond, chairman and CEO of the company.

Hammond’s shares were down 51 cents or 4.25 per cent to trade at $11.50 on the Toronto Stock Exchange.

Video Link: http://www.youtube.com/watch?v=tfX_T9BpIug

For more information please visit us at: http://www.clearlease.com/Career-Opportunities.html

About Dominion Lending Centres Clearlease

Dominion Lending Centres Clearlease Commercial (DLC Clearlease/Clearlease.com) is a fully diversified Lease Finance Mortgage Banking Brokerage Company specializing in Equipment Leasing, Automobile Leasing, Residential, Commercial Lending/Mortgage Financing. DLC Clearlease possesses the capability to accommodate financing needs ranging from a small second Home Mortgage to a Multi-Million Dollar Commercial Projects. No mortgage is too small or too large for this integrated Company.

Equipment Lease Financing in Vancouver, Surrey, Delta, Richmond, Langley, New Westminster, North Vancouer, West Vancouver, B.C. Also offering Automobile Lease Financing and Mortgage information. Founded by the Pidgeon brothers.

You may have recently seen a Dominion Lending advertisement on such media outlets as: Global News, CTV News, CBC Television, Rogers Sportsnet or possibly heard the great Don Cherry, a Canadian Sports legend, discuss Dominion Lending Centres.

Contact DLC Clearlease.com:

Dominion Lending Centres Clearlease
HEAD OFFICE, Bentall Two, Suite 900, 555 Burrard Street, Vancouver, BC, V7X 1M8, CANADA.
Mr. A. Pidgeon, Editor in Chief
Tel: (604) 696-1221 ext. 177
eMail: [email protected]
Website: http://www.clearlease.com
News: http://clearlease.com/category/equipment-lease-blog/feed/rss
Twitter: @clearlease


Video Link: http://www.youtube.com/watch?v=tfX_T9BpIug

Tags: No tags

Comments are closed.