Canada's Reko Q2 sales fall 5.8%, net income up 20.4%

Overview

• Canada manufacturing firm's fiscal Q2 sales fell 5.8% yr/yr due to lower volumes

• Net income for fiscal Q2 rose 20.4% yr/yr, aided by tax benefits

• Company returned capital via dividends and share buybacks

Outlook

• Reko says macroeconomic conditions continue to present headwinds but focus remains on controllable factors to strengthen business

Result Drivers

• LOWER SALES VOLUMES - Decline in sales attributed to lower volumes and timing of project activity

• TAX BENEFITS - Net income improved due to re-recognition of deferred tax assets and tax recoveries

• COST MANAGEMENT - Cost initiatives led to labor savings, helping offset impact of lower sales volumes

Company press release: ID:nBw5pLWjwa

Key Details

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