DECT Dectron International (MM)

/C O R R E C T I O N from Source - Dectron Internationale Inc./ In press release MO202 sent on Dec. 15, 2004 at 08:31e, an error occurred in the first paragraph. The phrase "Consolidated revenues for the three-month period ended July 31, 2004" should have read "Consolidated revenues for the three month period ended October 31, 2004." Corrected copy follows: MONTREAL, Dec. 15 /PRNewswire-FirstCall/ -- Dectron Internationale (NASDAQ:DECT): Dectron releases the results for the third quarter in fiscal 2005 ----------------------------------------------------------------- Consolidated revenues for the three-month period ended October 31, 2004 were $11,020,743, a 6.46% increase over the prior year revenues of $ 10,352,342. The increase was primarily due to stronger sales in the HVAC markets in Canada. Gross profit decreased by $255,867 to $2,894,036 over the same period. As a percentage of revenues, gross profit decreased from 30.43% to 26.26%. Gross profit was adversely affected by the higher cost of raw materials, the use of aggressive pricing strategies in the commercial HVAC markets and unfavorable fluctuations in foreign exchange. Selling expenses decreased by $232,139 in the three-month period ended October 31, 2004. As a percentage of revenues, selling and marketing expenses decreased from 13.63% to 10.70%. General and administrative expenses decreased by $385,482 to $756,461. As a percentage of revenues, general and administrative expenses decreased from 11.03% to 6.86%. Financing expenses increased from $228,304 to $582,911 due mainly to the effects of foreign exchange variation. As a percentage of revenues, financing expenses increased from 2.21% to 5.29%. Net earnings before discontinued operations were $35,411 compared to $19,881 for the corresponding period in 2003. As a percentage of sales, net earnings before discontinued operations increased from 0.19% to 0.32%. Gains from discontinued operations net of taxes for the three-month period ending October 31, 2004 were $38,786 compared to a loss of $25,203 in the corresponding period in 2003. Gains on disposal of discontinued operations were $180,836 in the three month period ended October 31, 2004 compared to $25,195 in the corresponding period in 2003. As a result of the foregoing factors, net earnings in the three-month period ending October 31, 2004 were $255,033 compared to earnings of $19,873 in the corresponding period in 2003. The increase in earnings is due mainly to the gain on disposal of assets. Mauro Parissi, CFO stated "Stronger earnings per share were directly the result of gains arising from the sale of non-core business assets." He further noted that "Improvements in operating expenses have materialized as part of our ongoing efforts to consolidate operations." Dectron renews contract with Renmark Financial Communications ------------------------------------------------------------- Dectron has renewed its investor relations contract with Renmark Financial Communications effective December 1, 2004. Renmark's mandate is to strengthen the Company's profile with the financial investment community and business media outlets. Conference Call --------------- Dectron will host a conference call today at 9:30 a.m. (EST). The telephone number to access the conference call is 514-940-2795 or 1-800-796-7558. A replay of the call will be available until Dec. 22, 2004. The telephone number to access the replay of the call is 1-877-289-8525, code 21105093(pound sign). Dectron Internationale is a global provider of Custom and Semi-Custom IAQ (Indoor Air Quality) and HVAC (Heating, Ventilation & Air Conditioning) products and services to the Building Systems, Food Processing, Medical, Petrochemical, and various industrial and commercial markets. Dectron Internationale's core businesses are conducted by its five principal subsidiaries: Dectron Inc., RefPlus Inc., Circul-Aire Inc., Thermoplus Air Inc. and International Water Makers Inc. Dectron, Circul-Aire and Thermoplus Air serve customers in commercial and residential buildings, through a network of manufacturers' representatives and dealers. Industrial facilities and OEM clients also form the customer base of these business units. RefPlus manufactures and supplies commercial refrigeration through a network of wholesalers and dealers in Canada and USA. International Water Makers' proprietary water-generation-from-air system manufactures products for industrial processes, and military and commercial applications. DATASOURCE: DECTRON INTERNATIONALE INC. CONTACT: Dectron Internationale Inc., Aurelio Useche, (514) 334-9609, ; Brian Monk, (514) 336-3330, , http://www.dectron.com/; Renmark Financial Communications, Tina Cameron: ; Henri Perron: ; Media: Cynthia Lane: , (514) 939-3989, Fax: (514) 939-3717, http://www.renmarkfinancial.com/

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