AirBoss of America records quarterly loss

Newmarket, Ontario -- AirBoss of America Corp.'s sales increased for the quarter and first nine months of 2005 but the company recorded a loss in the three-month period, primarily because of high raw material costs, closure of a temporary rubber mixing plant and an adverse court ruling.

Sales rose 7.6 percent to $45.2 million in the quarter while the firm had a loss of $1.3 million compared with a profit of $1.2 million for the same period in 2004.

Revenues jumped 22 percent to $147 million in the first nine months but earnings fell to $1.5 million from $3.4 million the previous year.

Each of AirBoss´ business -- rubber compounding, military and first response safety products, and railroad track fastening goods -- reported sales gains. Those trends are expected to continue for the remainder of the year, said President and CEO Robert Hagerman.

The loss in the quarter was affected by the closure of a temporary rubber mixing facility and a court ruling involving a plastic/cement product produced by the Railway division that went against the company. The cost of those, along with the rising costs of raw materials, is about $2.7 million after taxes, he said.

From Rubber & Plastics News (A Crain publication)

Website of Airboss of America