Automation maker Reko International reports year end profit
Fourth-quarter sales were impacted by pandemic-related border restrictions, the Ontario-based company said.
Citing delays caused by pandemic-related border restrictions, factory automation supplier Reko International Group Inc. reported consolidated sales for the fourth quarter of 2021 of $9.0 million compared to $11.4 million in the same period last year, a decrease of $2.4 million, or 21.1%.
Consolidated sales for the year ended July 31, 2021 were $39.2 million, compared to $40.2 million in the prior year, a decrease of $1.0 million or 2.5%, officials with Windsor, Ont.-based Reko said in an Oct. 15 news release. “Continued border restrictions impacted the ability to get customers in the facility to review and sign off on their equipment [and] this impacted sales for the quarter, as a portion of revenues shift to fiscal 2022, rather than being recognized in fiscal 2021.”
Gross profit for the quarter ended July 31, 2021 was $1 million, or 11.5% of sales, compared to $1.2 million, or 10.8% of sales in the prior year, Reko said, while gross profit for the year ended July 31, 2021 was $4.8 million, or 12.3% of sales, compared to $4.4 million, or 11.0% of sales in the prior year.
“The organization restructuring that occurred in the first quarter also contributed to an increase in gross margin,” the company said. “As teams became busier, there was also a natural tendency to find more efficient ways to get things done. Securing the best pricing from our suppliers when possible has also helped improve profitability.”
With the COVID-19 pandemic continuing to have its effect, Reko has been eligible for Canada Emergency Wage Subsidy (CEWS), and has received $2.4 million in CEWS funding.
“I am pleased with our results considering the challenges that we faced as a Canadian exporter in fiscal 2021”, said CEO Diane Reko. “The long delay in the decision to allow fully vaccinated US citizens into Canada cost us in many ways and will have a long-term impact. We also incurred significant additional costs in supporting our installed equipment due to border restrictions and COVID-driven requirements. Nonetheless, we continue to pursue new markets, innovate, and control costs in order to improve profitability.”
Reko manufactures robotic factory automation solutions, and also supplies precision machining of large critical parts and plastic injection and low compression acoustic tooling.