NEWMARKET, Ontario—AirBoss of America Corp. emerged from 2013 in relatively good shape despite weakness in both the mining and the military products segments.
The company successfully completed its acquisition of Flexible Products during the fourth quarter, which gives it a solid base in the automotive sector.
The full benefit of the purchase was not realized, as Flexible Products' $500,000 contribution to earnings was offset by transaction costs of $2 million and an increase in stock appreciation rights expenses of $800,000.
Sales in the quarter jumped to about $70.3 million, up 29 percent from the comparable 2012 quarter. Although earnings before taxes, interest and amortization came in at almost $2.4 million, down from $4 million in the 2012 quarter, the firm suffered a loss of about $779,000 in net income, principally because of a drop in defense product and rubber compounding sales.
For the year, AirBoss had net income of about $6.3 million, a drop from the previous year's $7.1 million on sales of $236.3 million, which were almost 5 percent lower than 2012.
AirBoss said rubber mixing revenues will continue to be negatively impacted in 2014 because of continued weakness in the mining sector while defense product revenues likely will decrease due to U.S. Department of Defense budget constraints.
However, tire, automotive and other markets serviced by the company are likely to remain strong, it said, and as the company moves forward in 2014 it has established focus areas to drive AirBoss' performance initiatives on both the cost and revenue sides of its business.