AirBoss second quarter earnings grow amid US economic slowdown

Newmarket, Ontario – Canadian compounder and rubber products supplier AirBoss of America Corp. has improved adjusted earnings (adjusted EBITDA) in the second quarter of 2024, helped by a transformation programme launched earlier this year. (ERJ report)

Second quarter adjusted earnings were up 17.5% year-on-year at $6 million (€5.4 million), on 16.4% lower sales of $95 million, AirBoss reported 14 Aug.

Over the first six months of the year, however, the group posted a 33% year-on-year decline in adjusted earnings to $10.4 million, on 14% lower sales of $199 million.

Airboss linked the drop in revenue primarily to lower sales at its AirBoss Manufactured Products (AMP) business unit as well as lower volumes at within its AirBoss Rubber Solutions (ARS).

In the ARS segment, Airboss reported a 13% decline in second quarter net sales to $59 million while first half revenue fell 8% to $124 million.

For the quarter, volume decreased by 20.2% compared to the year before, with decline “in most sectors.”

Year-to-date, volume was down 8.9% with decreases across the majority of sectors and “continued signs of softness with many customer’s operations.”

Within AMP, second quarter sales decreased 22.7% year-on-year to $40 million, while first half revenue fell 24.5% to $83 million.

Airboss said the decrease was witnessed “across most product lines.”

Specifically, the defence products lines experienced continues softness and the rubber moulded products business had lower volumes in SUV and light truck platforms.

Here, Airboss said, “economic headwinds and increased vehicle inventories” impacted production schedules across certain OEMs and Tier 1 suppliers in the quarter.

Despite the "economic slowdown in North America," Airboss president and co-CEO Chris Bitsakakis said that his company “remained focused on operational execution, aggressive deleveraging and cost management.”

While both segments experienced softness in the past quarter, Bitsakakis said he was encouraged by recent ‘Bandolier’ awards which began shipping in the third quarter. (ERJ report)