CPS’s new strategy pays off
CPS Technologies Corporation’s revenues for the 12 months ending Dec 28, 2019 were $21.5mn, largely unchanged from $21.6mn in the prior year. During its most recent 12-month period, the firm incurred an operating loss of $597,000, down significantly from its $901,000 operating loss in 2018. During Q4 2019, CPS’s revenues reached $5.4mn with an operating profit of $369,000 for the quarter. During the prior year period, the company reported $6.1mn in revenues and a $209,000 operating profit. During Q3 2019, the company entered into new contracts with its three largest customers that elevated prices and volumes. The company additionally increased its margins with new new product mix, resulting its in Q4 2019 operating profit.
Canadian PM backs miners
At a recent mining conference in Toronto, Prime Minister Justin Trudeau announced the Canadian government is extending zero-emission-vehicle incentives to businesses that use off-road vehicles, like mining fleets. The Mining Association of Canada (MAC) supports the incentive, stating that using electric mining vehicles in underground mines reduces ventilation requirements, unit costs and mine waste, while improving air quality. Pierre Gratton, MAC’s president and chief executive officer, said the government’s incentive mitigates risks associated with purchasing electric vehicles.
Tree Island revenue falls 14.8pc
Tree Island Steel had a rough 2019. Due to Section 232 trade tariffs between the US and Canada, as well as soft market demand, the company’s revenue in 2019 decreased by 14.8pc to $149.4mn from $175.4mn in 2018. However, Q4 2019 revenues benefited from the tariffs being repealed and increased by $223,743 to $33.6mn from $33.4mn in Q4 2018. The company’s gross profit decreased to $13.2mn in 2019 from $19.2mn in 2018. In Q4 2019, gross profit declined to $2.6mn from $2.7mn during the same quarter in 2018. The drop in gross profit reflected low market volumes, competitive pricing, and soft market demand. Tree Island’s adjusted EBITDA decreased significantly to $3.5mn in 2019 from $10mn in 2018.