CORRECTED-Precision manufacturing firm Reko's Q1 net income rises

Overview

• Reko fiscal Q1 sales decline 11.6% due to lower volumes and project timing

• Net income for fiscal Q1 rises 336.4% due to favorable foreign exchange and tax benefits

• Company repurchased 24,200 shares and repaid C$2.7 mln mortgage, maintaining strong cash position

Outlook

• Reko remains focused on strategic investments to enhance long-term growth

• Company acknowledges macroeconomic challenges and softer demand in certain markets

Result Drivers

• PROJECT TIMING - Sales decreased due to a higher proportion of projects being in early stages, affecting revenue recognition

• LABOR COST REDUCTIONS - Gross profit decline partially offset by C$362,000 in labor cost reductions

• FOREIGN EXCHANGE GAINS - Net income improvement driven by favorable foreign exchange positions

Key Details

Press Release: ID:nBw7zrPWKa

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