NEWMARKET, Ontario—AirBoss of America reported higher sales, but lower net income in its third quarter financial results.
Net sales increased 8 percent to $77.8 million for the quarter ending Sept. 30, and rose 11 percent to $240.1 million, for the year to date.
Net income, however, dropped by 52 percent to $1.35 million for the quarter and by 19 percent to $7.21 million for the nine-month period.
The firm's Rubber Solutions segment increased net sales by 20.8 percent to $37.2 million in the third quarter. For the year, it increased 16.5 percent to $109.7 million. AirBoss said the increases were driven by a rise of about 2.6 percent in raw materials costs in the quarter and 12.7 percent for the first nine months, which in turn resulted in increased prices to customers. In addition, AirBoss reported an overall increase in volume (measured in pounds) of about 25.7 percent for the quarter and 15.2 percent for the year to date.
The boost in net sales showed across the majority of sectors, with particular strength in the conveyor belt, track and infrastructure sectors for the quarter. For the year, that included the conveyor belt, mining and off-the-road sectors, partly offset by softness in the third-party automotive and chemical sectors.
Tolling volume increased by 139 percent in the third quarter and 120 percent for the nine month period, compared to the same time last year. That rise was seen for both niche and conventional tolling applications. The non-tolling volume for the quarter increased by 11.9 percent and 1.1 percent for the nine months.
Engineered Products saw net sales decrease by 1.1 percent for the quarter to $40.6 million, compared to last year. Since January, it increased by 7.4 percent to $130.4 million. Net sales increased in the defense business and were down in the automotive business.
In automotive, the decreases primarily occurred with muffler hangers, spring isolators, dampers and boots, but were partially offset by increases in bushings and induction bonding applications.
In defense, increases showed across most major product lines, particularly in filters, powered air purifying respirators, overboots, shelters and masks, partially offset by lower demand in the gloves product line.