ERJ staff report (R&PN)
Newmarket, Ontario -- AirBoss of America Corp.'s sales and earnings decreased in both the three- and six-month periods ending June 30, principally because of a decline in the rubber conveyor belting industry and reduced orders for military protective wear.
Net sales dropped 14 percent in the quarter to $66.8 million and 8 percent in the first six months to $136.7 million. AirBoss recorded about $1.6 million in net income in the three-month period, down from $4.5 million in the 2011 quarter. Six month earnings came in at $3.9 million, down from $8.8 million in the period last year.
AirBoss' rubber compounding business is expected to be impacted by reduced demand for conveyor belting in the mining industry for the remainder of 2012 but the firm said improvement in volumes are possible from the tyre industry midway through the third quarter with potential further increases in the fourth period.
The company said raw material prices are expected to trend downward in the near future, which should have a positive impact on margins for certain products as well as reduced working capital requirements.
From Rubber & Plastics News (A Crain publication)
press release from Airboss of America