Raydan Manufacturing Reports 2010 Financial Results

EDMONTON, Sept. 27 /CNW/ - Raydan Manufacturing Inc (the Company) (TSX-V:RDN) reported financial results for the quarter ended July 31, 2010.

The quarter ended July 31, 2010 showed improvement in the Company's performance, due in large part to the contract to supply custom designed trailer suspensions for military purposes. However, operations continue to be hampered by the ongoing low demand for manufactured products and the low volume sales of Class 8 trucks throughout North America. Revenue was derived as follows: Manufacturing division 82.5%; Chassis Modifications 17% and Service Work .5%. Consolidated revenue for the three months ended July 31, 2010, was $2.2M compared to $1.3M for the same period last year, an increase of 64%. Revenue was lower than anticipated due to an unavoidable delay in shipping the July order of trailer suspensions to the second quarter of this fiscal year.

    
    (in CAD dollars 000's)                     Three months ended  Difference
                                               July 31,   July 31,
                                                 2010       2009

    Revenue                                      2,223      1,353        870
    Income (Loss) Continuing Operations            (71)      (396)       325
    Loss Discontinued Operations                    56       (163)       219
    Net Loss                                       (15)      (559)       544
    EPS (basic) from continuing operations      (0.004)    (0.024)     0.020
    EPS (basic) from discontinued operations    (0.003)    (0.010)     0.013
    EPS (basic) total                           (0.001)    (0.034)     0.033
    Total Assets                                 6,790      7,119       (329)
    

The Raydan Ontario operation was placed into receivership in February 2010 and has been reclassified as a discontinued operation for this year and all comparative years. Management took this action to cut the losses being generated by Raydan Ontario. It is expected to have a positive affect on Raydan's overall financial results in the future.

The Company continues to focus on the trailer suspension approved for military purposes as the best opportunity for future growth and profitability. The issues surrounding the delay in shipment of product in July have been resolved and the regular shipping schedule will resume by the end of the second quarter. As well, development of the single axle suspension continues on target, with testing currently underway by a large fire apparatus manufacturer. Anticipated future sales will impact the Company's earning potential.

About Raydan Manufacturing

Raydan Manufacturing Inc, based in Edmonton, Alberta, develops and produces specialized suspension and coupling systems for trucks, trailers and heavy equipment, as well as operates a chassis modification centre. Established in 1992, Raydan exports its innovative, high-quality products to end-users and original equipment manufacturers (OEMs) in the heavy-duty truck, crane, fire/rescue and other severe use sectors around the world.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

This news release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. Potentially, many factors could cause our actual results to vary materially from those described herein as intended, planned, anticipated or expected. Raydan Manufacturing Inc. does not intend and does not assume any obligation to update these forward-looking statements.

For further information: Raydan Manufacturing Inc., Joan Richardson, Office Manager/Investor Relations, 780 955 2859, 888 472 9326, [email protected], www.raydanmfg.com; Derrek Dobko, Controller, 780 955 2859, 888 472 9326, [email protected], www.raydanmfg.com