AirBoss Q3 profit surges on more than doubling of revenues from COVID supplies
NEWMARKET, Ont. — AirBoss of America Corp. says its net profit surged in the third quarter on a more than doubling of revenues from supplying respirators and related products ordered by U.S. government agencies in response to COVID-19.
The Ontario-based company says its net income attributable to shareholders was US$11.6 million or 47 cents per diluted share, up from US$1.5 million or seven cents per share a year earlier.
AirBoss, which reports in U.S. dollars, says adjusted profit was $11.7 million or 47 cents per share, compared with $1.8 million or eight cents per share in the third quarter of 2019.
Revenues for the three months ended Sept. 30 rose to $162.7 million from $77.2 million in the prior year.
AirBoss was expected to report 33 cents per share in adjusted profits on $140.3 million of revenues, according to financial data firm Refinitiv.
AirBoss Defence Group, which is owned 55 per cent by AirBoss, delivered 100,000 respirator systems to the U.S. Federal Emergency Management Agency (FEMA) under a US$96.4 million contract issued in March.
“It is unclear what impact COVID-19 will have on the economy and our customer base in the near term. However, we believe our diversification positions us well either for a hopeful return to a safe normalcy or to continue supplying front line workers with PPE if the pandemic continues or grows worse,” stated president and chief operating officer Chris Bitsakakis.
“Over the long term, our focus remains unchanged and we will continue to pursue opportunities to supply PPE for front line health care workers and work with regional, provincial, state and federal governments as an ongoing part of future strategic pandemic planning, target traditional defence contracts, and grow and diversify our rubber solutions and engineered products segments.”