AirBoss revises down 2021 guidance amid delayed nitrile gloves delivery

Newmarket, Ontario – AirBoss of America Corp. has significantly revised down its 2021 financial guidance due to delays in nitrile glove deliveries scheduled for the fourth quarter of the year.

In a statement 28 Dec, the Newmarket-based group said its Airboss Defense Group (ADG) unit faced “unprecedented challenges” with ongoing customs, logistics and border delays at the ports of Los Angeles and Long Beach.

Furthermore, the unit’s glove deliveries were also impacted by Covid-19-related factory shutdowns in Malaysia.

As a result, the group lowered its revenues range to $570 to $590 million (€504 to €522 million), down from $630 to $710 million announced in November.

The sales estimates, however, still reflect a growth of between 14% and 18% over 2020.

Adjusted earnings (EBITDA) margin is to come in in the range of 13.0% – 13.5%, down from November’s estimate of 15.0%-15.5%.

Despite the setback, AirBoss said it expected the current customs and border delays to alleviate following the holiday season.

As a result, it anticipates that the remaining $95-million revenue from the contract to be recognised in the first quarter of 2022. 

“This will position the company for very strong performance in 2022, including a record pipeline of over $1.5 billion,” it said.