NEWMARKET, Ontario (Nov. 12, 2009)—Paced by strong sales of protective wear products, AirBoss of America Corp. recorded record profits in the third quarter despite a drop in sales.
Net income rose to more than $3.6 million from about $2 million in the like 2008 quarter although revenues fell 22 percent to $48.1 million.
The company's Defense Division—which produces chemical, biological, radiological and nuclear products for the U.S., Canadian and some European military departments and first response units—is running ahead of projected goals for both sales and income for the first nine months of 2009 and anticipates a strong fourth quarter, the firm said.
AirBoss' rubber compounding business, like virtually all mixers, has been going through a period of adjustment because of the economic downturn, CEO and President Robert Hagerman said in a recent interview. However, recovery of the segment is beginning, he said, although it's too early to predict what the rate of improvement will be in the next several months.
The company said with the final disposal of high cost raw materials in the first half of 2009, rubber mixing margins returned toward normal levels and AirBoss' compounding business was profitable in the third quarter. It anticipates that upward trend will continue.
Throughout 2009, AirBoss has improved its liquidity and reduced its operating loans by $19.8 million while continuing to invest in the expansion of its manufacturing operation with a new defense and first response product plant that's expected to open in January in Burlington, Vt., and an efficiency improvement project at its Scotland Neck, N.C., rubber compounding facility.