NEWMARKET, Ontario—Rubber compounding and products maker AirBoss of America Corp. saw sales rise but profits fall during the first quarter.
The Newmarket-based company had a profit of $787,000, or 2 cents per diluted share, on revenue of $94.2 million for the quarter ended March 31. That compares with a profit of $2.93 million, or 12 cents per diluted share, on revenue of $82.6 million during the first quarter of 2019.
Adjusted earnings before interest, taxes, depreciation and amortization was $9.73 million for the quarter, up from $8.5 million during the first quarter of 2019.
Sales in the Rubber Solutions business fell by 4.8 percent to $34.3 million for the first quarter compared to the previous first quarter. This primarily was due to the conveyor belt sector, and the decrease partially was offset by the mining sector, the company said.
Sales in the Engineered Products business decreased by 3.1 percent to $30.1 million. "The decrease was seen across a number of product lines, including muffler hangers, tooling and spring isolators, and partially offset by higher demand in dampers," the company said.
Sales also took a hit due to the partial closure of the company's Auburn Hills, Mich., plant due to the COVID-19 pandemic that idled original equipment manufacturers and Tier 1 customers, Air Boss said.
Sales for the Defense Group business grew by 66.9 percent to $35.1 million during the first quarter compared with the year-ago period. That was primarily due to the sale of equipment related to its recent merger of the AirBoss defense business with Critical Solutions International Inc.
"The COVID-19 pandemic has generated both opportunities and challenges for organizations globally, including AirBoss. The impact on first quarter results was relatively limited and, given the nature of its businesses, the company has been able to continue operating most of its facilities in Canada and the U.S. despite the introduction of widespread government restrictions," AirBoss said in a statement.
"As certain customers, including the 'Big Three' auto makers, tire makers and related suppliers, elected to temporarily suspend operations in late March, AirBoss anticipated there may be an impact on its operations beginning in the second quarter of the year," the company continued.
AirBoss is based in Canada and reports financial results in U.S. dollars.