The profitability of Pacific Insight Electronics Corp. (TSX:PIH), an electronics manufacturer for the transportation industry, has been hit by a sales downturn in the heavy truck industry and a strong Canadian dollar.
Revenue for the Nelson-based company fell to $7.02 million in 2008's first quarter compared with $9.45 million for the same period last year. The decrease was primarily related to a drop in truck sales as about 65% of Pacific's revenue is generated in that industry. The company's $656,277 profit in last year's first quarter turned to a $218,283 loss in its current first quarter.
The decline in sales has also been accompanied by foreign exchange losses.
In 2008's first quarter, the company absorbed $246,000 in foreign exchange losses alone. Pacific expects foreign exchange rates to have a similarly negative impact in its second quarter.
Pacific Insight's share price range during the past week: between $3.15 and $3.52; 52-week high: $5.30; 52-week low: $3.15.