NEWMARKET, Ontario—AirBoss of America Corp.'s sales and net income fell in the third quarter compared to the results recorded in the same span last year.
Net sales came in at $66.6 million in the period ended Sept. 30, down 14 percent from last year, while net income slipped to $3.1 million from $4 million in 2015, reflecting decreases across all the company's business segments.
For the nine month period, however, net income rose to $12.4 million compared to $9.5 million last year, despite an 11.6 percent drop in sales to $204.5 million, with decreased net revenues in the firm's Rubber Compounding and Engineered Products divisions offsetting a slight increase in Automotive division sales.
AirBoss said the sales slide largely reflected continued weakness in demand from various segments of the company's customer base and, in the case of rubber compounding, lower raw material pricing.
The firm's operations continued to generate strong cash holdings, with free cash flow (defined as net cash provided by operating activities less capital expenditures for the period) increasing 43.1 percent to $5 million in the quarter and climbing 39.2 percent to $14.3 million for the year to date from last year.
Because of that, the company entered the fourth quarter in robust financial condition, it said.
In an internal move, AirBoss said that Bradley A. Berghouse will take over the role of Automotive division president on Nov. 28 following the retirement of Doug Reid, who will move into an advisory role with the automotive unit after serving the last three years as division president.
Berghouse brings with him more than 25 years of U.S. and global management experience. He previously held sales, operational and fiscal leadership posts with a number of automotive and other manufacturing businesses.