NEWMARKET, Ontario—AirBoss of America Corp. reported an increase in its net sales for the fourth quarter of 2018 in its year-end financial report.
Net sales for the quarter increased by 3.1 percent to $76.5 million compared to the same period in 2017, according to the report. Increases in rubber solutions were partially offset by decreases in the engineered products segment. Net income for the period came in at $1.33 million, down from $3.77 million in 2017 as increases in rubber solutions were more than offset by lower revenue in both businesses of the engineered products segment.
For the year, net sales increased by 9.2 percent to $316.6 million, with increases in both the rubber solutions and engineered products segments. Net income was down slightly at $25.7 million compared to $27.7 million in 2017. Increases in rubber solutions were partially offset by decreased revenue in engineered products, AirBoss said.
Revenue as a percentage of net sales decreased to 14.2 percent from 15.4 percent primarily because of higher input costs particularly with respect to rubber, maintenance, labor and training, AirBoss said. In the case of engineered products, lower net sales combined with increased steel costs as a result of tariffs introduced by the U.S.
By segment, rubber solutions' net sales increased by 13.9 percent to $35.6 million compared to the fourth quarter in 2017, because of increased raw material prices resulting in price increases to customers and a 14.8 percent increase in volume compared to the previous year. AirBoss said the increase in net sales was across the majority of sectors, primarily in conveyor belt, track and off-the-road segments. Because of the increase in net sales, revenue rose by 20.4 percent to $6.07 million for the quarter.
For engineered products, net sales decreased by 4.8 percent to $40.9 million, compared to the fourth quarter 2017. A $2.48 decrease in net sales for the defense business was partly offset by a $402,000 increase in the automotive business, AirBoss said. The decrease in the defense business was primarily in the filter product line because of increased shipments in the second half of 2017, following the fulfillment of a previously delayed contract because of customer-specific changes, as well as lower glove and shelter sales. In the automotive business, increased net sales from higher demand in the bushings, grommets and induction bonding product lines were partly offset by softness in the dampers product lines.