Newmarket, Ontario – Rubber compounding and products maker AirBoss of America Corp. saw sales rise but profits fall during the first quarter of 2020.
Profits fell 37% to $787,000 (€720,000) on 14% higher sales of $94.2 million during the first three months of the year, the company announced 13 May.
Adjusted earnings before interest, taxes, depreciation and amortisation was $9.73 million for the quarter, up from $8.5 million during the first quarter of 2019.
Sales in the Rubber Solutions business fell by 4.8% to $34.3 million for the first quarter, primarily was due to a decline in the conveyor belt sector.
Revenue in the Engineered Products business decreased by 3.1% to $30.1 million, reflecting a fall across a number of product lines, including muffler hangers, tooling and spring isolators. The decline was partially offset by higher demand in dampers, the company said.
Sales also took a hit due to the partial closure of the company's Auburn Hills, Michigan, plant due to the Covid-19 pandemic that idled original equipment manufacturers and Tier 1 customers, Air Boss said.
Revenue for the company’s defence business grew 67% to $35.1 million, primarily due to the sale of equipment related to its recent merger with Critical Solutions International Inc.
Airboss said the Covid impact on first quarter results was “relatively limited” and that it was able to continue operating most of its facilities in Canada and the US despite restrictions.
However the company anticipates further impact on its results in the coming months as certain customers, including the 'Big Three' car makers and tire manufacturers temporarily suspended operations as of late March.