Albany International Cuts FY24 Guidance: Aerospace Turbulence Hits Revenue And Profit Outlook
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Albany International Corporation (NYSE:AIN) shares are trading lower on premarket on Thursday after the company revised its full-year outlook.
The bearish outlook reflects slower revenue and profitability expectations for its aerospace business in the Engineered Composites (AEC) segment.
The company updated its labor and material cost assumptions, which, along with production suspension at a key customer, is anticipated to lead to an estimated negative adjustment of about $24 million for the third quarter of 2024.
Also, changes in other forecast assumptions can reduce second-half pre-tax earnings by an additional $8 million.
Outlook: For FY24, the company lowered revenue outlook to $1.22 billion – $1.26 billion (from $1.26 billion – $1.33 billion) versus the consensus of $1.29 billion and adjusted EPS to $2.90 – $3.40 vs. estimate of $3.74 (from $3.55 – $4.05).
President and CEO Gunnar Kleveland said, “We continue to see momentum in both Machine Clothing and Engineered Composites. The Heimbach integration remains on track, and Albany’s differentiated innovation is translating into robust demand across both segments.”
“At the same time, growth in our aerospace programs is resulting in more complex projects, where the manufacturing learning curve and labor ramp are steeper.”
“Notwithstanding these changes, we expect AEC will maintain high-teen EBITDA margins that are well above peer averages.”
Price Action: AIN shares are down 3.16% at $84.17 premarket at the last check Thursday.
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This article Albany International Cuts FY24 Guidance: Aerospace Turbulence Hits Revenue And Profit Outlook originally appeared on Benzinga.com
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