ROCHESTER, N.H. - Albany International Corp . (NYSE: NYSE:AIN), a global advanced materials processing company, has adjusted its full year financial outlook for 2024, primarily due to revised projections in its aerospace business within the Engineered Composites segment.
The company announced the changes following a regular quarterly review of program costs and estimates for certain large aerospace contracts.
AIN shares were trading 4.5% lower in Thursday's premarket session following the announcement.
The company expects a negative Estimate-at-Completion (EAC) adjustment of approximately $24 million in the third quarter of 2024, which reflects increased labor, material input, and scrap cost assumptions over the duration of certain long-term contracts. Additionally, suspended production at a major customer due to union negotiations is projected to further reduce pre-tax earnings by $8 million in the second half of the year.
Despite these adjustments, Albany International's CEO, Gunnar Kleveland, expressed confidence in the company's momentum in both its Machine Clothing and Engineered Composites segments. Kleveland highlighted the on-track integration of Heimbach and robust demand driven by Albany's innovation. He also underscored the high-teen EBITDA margins of the Engineered Composites segment, which are above peer averages, and the leadership of Chris Stone, the newly appointed President of AEC, in capitalizing on opportunities in the aerospace business.
The company's updated guidance for the full year of 2024 includes total revenue projections of $1.22 billion to $1.26 billion, an effective income tax rate of approximately 27%, and capital expenditures ranging from $90 million to $95 million. Adjusted diluted earnings per share are forecasted between $2.90 and $3.40, with the second half EPS weighted towards the fourth quarter. Adjusted EBITDA is expected to be between $230 million to $250 million, with the Machine Clothing and Albany Engineered Composites segments contributing to this outlook.
This article is based on a press release statement from Albany International Corp.
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