UPDATE 1-Velan Q1 profit plummets; sees tough year ahead

* Q1 EPS C$0.05 vs C$0.64 last year

* Q1 sales fall abt 24 pct to C$91.7 mln

* Sees lower sales, margins for the year

* Cuts jobs

July 8 (BestGrowthStock) – Industrial valve maker Velan Inc
(VLN.TO: ) reported a 92 percent drop in first-quarter profit (Read more your timing to make a profit.) and
said it laid off “some employees” citing difficult market
conditions, and forecast lower sales and margins during the
year.

“There has been downward pressure on valve prices and we
expect this will continue,” the company said in a statement.

Net Income for the quarter fell to C$1.1 million, or 5
Canadian cents a share from C$14.3 million, or 64 Canadian
cents a share, a year ago. Higher material prices and a
stronger Canadian dollar dented earnings.

Analysts on an average were expecting earnings of 28
Canadian cents a share, according to Thomson Reuters I/B/E/S.

Backlog for the quarter was down 5 percent to C$478
million.

Sales for the quarter fell about 24 percent to C$91.7
million, while analysts were expecting C$104.7 million.

“We expect that it will take time for the capital-intensive
project market to fully recover,” the company added.

Shares of the Montreal, Quebec-based company were trading
down 46 Canadian cents at C$14.07 Thursday afternoon on the
Toronto Stock Exchange.
(Reporting by Arnika Thakur in Bangalore; Editing by Vyas
Mohan)

UPDATE 1-Velan Q1 profit plummets; sees tough year ahead