LAVAL, Que. – Elevator and accessibility company Savaria Corp. (TSX:SIS) says its second quarter income was down 89 per cent from a year ago as it lost money on foreign exchange, dealt with poor weather, and saw an increase in financing costs.
Savaria also spent more money on operating expenses for newly acquired companies.
The company, based in the Montreal area, said net income was $140,000, compared to $1.3 million in the same quarter last year. Revenues were almost flat at $16 million, versus $16.9 million.
The company said it took a foreign exchange loss because the value of the loonie was six per cent higher over the same period in 2010. The company sells 50 per cent of its goods outside Canada, primarily in the United States.
Savaria also blamed poor weather in its main market, the northeastern part of North America, saying it led to a lower number of accessibility equipment installations.
It also blamed the slow U.S. economic recovery.
“However, I am confident that the situation will progressively improve in the third quarter,” Marcel Bourassa, chief executive said in a statement.
Savaria designs, manufactures and distributes primarily elevators for home and commercial use, as well as stairlifts and vertical and inclined platform lifts. In addition, it converts and adapts wheelchair accessible automotive vehicles and also offers scooters and motorized wheelchairs.
Its shares last traded on Thursday at $1.34 at the Toronto Stock Exchange.