Heroux-Devtek Sees $7.9 Mln Charge On Settlement With UTC Aerospace Systems

(RTTNews) - Héroux-Devtek Inc. (HRX.TO), a Canadian manufacturer of aerospace products, announced Thursday that it has executed on May 27 a Memorandum of Settlement with UTC Aerospace Systems or UTAS. This is in regards to a litigation previously disclosed and related to the interpretation of a non-compete covenant contained in an agreement between Goodrich Corp. (GR), a member of UTAS group and Devtek Aerospace Inc., a subsidiary of Héroux-Devtek.

The final settlement should be completed in the following days, subject to an agreement on the terms for the extension of two existing contracts with UTAS for the supply of various aircraft parts.

As a result of this settlement, Heroux-Devtek will record a non-recurring charge of $11.6 million before taxes, equivalent to $7.9 million or $0.22 per share after taxes, in its financial results for the fourth quarter and fiscal year ended March 31, 2015.

The company will announce its fourth quarter and fiscal year results on May 28 before the market opens.