AirBoss’ net income increases 42%

LSRUNQI

AirBoss’ net income increases 42%
Monday, August 15, 2011
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3 R0 C! A* f1 s( @Newmarket, Ontario - AirBoss reported second quarter net income of $4.5 million on sales of $77.5 million compared to net income of $2.7 million on sales of nearly $61 million in 2010. For the first six months, net income increased 42% to $8.8 million and sales increased 32% to $147.7 million. Driven by continued strong performance by the rubber compounding business, volume increases at the AirBoss Engineered Products (“AEP”) industrial products division and the recognition of significant investment tax credits resulting from increased R&D, AirBoss reported record earnings for the second quarter of $0.19 per share. Rubber compounding volumes increased by 11% while revenues increased by 37% reflecting price increases required to pass along raw material increases. Volumes also increased in AEP due to increased demand in the recreational track sector and in providing additional capacity for rubber compounding. Demand for rubber products continues to increase in July and early August. Defense product sales continued as expected at the levels experienced in the first quarter. The current U.S. DoD contracts and corresponding orders will be completed at the end of the third quarter. AirBoss is close to finalizing a new U.S. DoD contracts in the next 45 days and anticipates further orders for 2011; however the level of funding for these contract is unknown at this time.