Velan Inc. has reported that its first quarter net profits have nearly doubled, but the company warned it may have to cut costs if its order book is squeezed by the recession and the slump in industrial and energy markets. The company, which supplies valves, pumps and other equipment for industrial and oil and gas companies, reported that its latest quarterly profits jumped to CAD 14.3 million from CAD 7.3 million. The company benefited from currency effects on its financial statement. However, Velan said sales continue to be hurt by delays on several large contracts because of the global financial crisis. About CAD 37 million of completed valves in the company’s North American plants couldn’t be shipped in the latest period. In its financial report, Velan said it earned 64 cents a share for the three months ended May 31, the first quarter of its 2010 fiscal year. That compared with earnings of 33 cents a share for the same year-earlier period. Velan employs about 1800 people at plants in Quebec, Ontario, Europe and Asia.