Airboss earnings halved amid soft market, volume decline

Newmarket, Ontario – AirBoss of America Corp. has seen its earnings (EBITDA) nearly halved in the first six months of the year, due mainly to softer markets and lower volumes.

Earnings for the six months to end of June fell to $15.3 million, down 49% compared to the year before, Airboss announced 10 Aug.

Sales for the period declined 9% to $230 million, despite a 3% recovery in the second quarter.

The Canadian rubber and engineered products group said it experienced stable consolidated sales levels and volume recovery in certain segments.

However, it went on to add, an “unfavorable product mix and elevated operating expenses” had a negative impact on profitability.

From a market-demand perspective, Airboss saw some improvements towards the end of first quarter, but customer volumes remained below the 2022 level.

Volumes were especially lower within the ‘rubber solutions’ compounding unit and defence products division AirBoss Defense Group (ADG).

Reductions at ADG, said Airboss, related to unfavorable product mix in the traditional moulded defence products and softness in industrial line of business.

At 'rubber solutions', the group said it offset lower volumes with improved margin contributions from past investments in production automation.

Custom moulding unit “engineered products”, on the other hand, continued to deliver “strong performance” supported by automation and higher demand across “several customer categories”.

Airboss recently unveiled cost-cutting measures within its ADG unit, which had witnessed "delays in converting sales opportunities from its expanded survivability solutions platform."

“We remain confident that our capabilities to deliver against awarded as well as future agreements remain strong," said Gren Schoch, chairman and co-CEO.