TORONTO - Spar Aerospace, former owner of the Canadarm grappler on the U.S. space shuttle, has reported third-quarter net income of $4 million after turning its focus to aviation maintenance.

The aviation services company had revenues of $32.5 million in the third quarter ended Sept. 30, compared with earnings of $5.7 million on revenues of $34.4 million a year earlier. Spar's net income from continuing operations for the third quarter was $4 million or 27 cents a share, up from $2.9 million a year earlier.

The effect of our restructuring plan has had a favourable impact on operating income during the quarter and will continue to do so throughout the remainder of the year, Anthony Caputo, Spar's president, said in a statement Wednesday.

Spar sold most of its assets over the last three years, including the Canadarm space robotics division, and was taken over by unhappy major shareholders in the spring of 1999.

Now with about 900 employees, Spar specializes in the maintenance, repair and overhaul of military and commercial aircraft for customers worldwide.

Despite the profit, Spar shares fell 15 cents to close at $8.15 on the Toronto stock market Wednesday.