Atlas Engineered Products Ltd. shares jumped Thursday morning after the company reported higher earnings and improved gross margins in the third quarter.
At 10:18 a.m. ET, shares were 8.8% higher at C$0.62.
The Canadian supplier of trusses and engineered wood products reported a rise in earnings to 5 Canadian cents (4 U.S. cents) a share, compared with C$0.04 a year earlier.
Atlas’s gross margins improved to 35% from 31% a year earlier. The company assessed and updated its pricing across its network of locations due to fluctuating costs of its raw materials and the cost of labor, it said.
Additionally, earnings were further strengthened by improving efficiencies on new product lines and recent acquisitions, Atlas said, which include synergies from the recently-acquired Hi-Tec Industries Ltd. and Atlas Building Systems Ltd.
Meanwhile, adjusted earnings before interest, taxes, depreciation and amortization a share also rose, reaching C$0.09 cents from C$0.08.
Revenue remained virtually flat at C$17.6 million.