CHICAGO ADF Group Inc. logged a third-quarter net loss because of completion of work at the World Trade Center, an unfavorable production mix and fabrication delays.
The Terrebonne, Quebec-based steel fabrication and installation company posted a net loss of Canadian $1.16 million ($1.17 million) for the three months ended Oct. 31, in contrast to net income of $403,000 in the same period last year, on sales that fell 31.1 percent to C$7.77 million ($7.79 million) from C$11.21 million.
Results were hurt in part by a dispute with WTC Tower 1 LLC, which the parties ultimately resolved out of court (amm.com, Oct. 23). But ADF said it expects to recoup "significant liquidities" related to the project by Jan. 31.
ADF said it had received C$8.7 million ($8.78 million) in new contracts for the fabrication and installation of a new amphitheater in Trois-Rivières, Quebec. Across the company, order backlogs totaled C$34 million ($34.31 million) as of Oct. 31, with contracts in hand expected to run through the third quarter of 2013.
But ADF chairman and chief executive officer Jean Paschini warned that the company could continue to struggle in the near term despite the new business. "Until our investment in the United States yields returns, we will continue to face challenging marketing conditions," he said.
ADF Group has announced plans to build a $24-million structural steel fabrication complex in Great Falls, Mont., in spring 2013, setting the steel fabricator up for growth in western markets (amm.com, Nov. 5). The new plant is expected to be operational during the third quarter of 2013, the company said.