Albany International Cuts Annual Outlook Below View On Higher Costs, Pre-Market Stock Down

Albany International

82.35 USD -0.90%

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(RTTNews) - Albany International Corp. (AIN) on Thursday reduced its annual guidance to reflect revised revenue and profitability expectations for the aerospace business within its Engineered Composites segment due to higher labor, material input and scrap cost assumptions.

Albany, said: "Increased cost assumptions as well as the impact of suspended production at a key customer pending their union negotiations will result in an approximate $24 million negative Estimate-at-Completion adjustment in the third quarter of 2024. Changes in other forecast assumptions are projected to lower second-half pre-tax earnings by an additional $8 million."

For the full year, the company now expects adjusted earnings per share of $2.90 to $3.40, compared with the earlier outlook of $3.55 to $4.05 per share.

Net income is anticipated to be $2.48 to $2.98 per share, lower than the earlier expectation of $3.42 to $3.92 per share.

Annual revenue is projected to be in the range of $1.22 billion to $1.26 billion, lower than previous guidance of $1.26 billion to $1.33 billion.

However, Albany has reaffirmed its annual capital expenditure outlook of $90 million to $95 million.

On average, five analysts, polled by Thomson Reuters forecast the firm to post earnings of $3.74 per share, on revenue of $1.29 billion, for the year. Analysts' estimates typically exclude special items.

AIN was trading down by 6.45 percent at $81.31 in the pre-market trade on the New York Stock Exchange.