Albany International(US:AIN)2025-02-26 21:31Financial Performance - Net revenues for 2024 increased to $1,230.6 million, up 7.2% from $1,147.9 million in 2023[326]. - Gross profit decreased to $401.8 million in 2024, down 5.0% from $423.7 million in 2023[326]. - Operating income for 2024 was $131.4 million, a decline of 21.6% compared to $167.9 million in 2023[326]. - Net income attributable to the Company decreased to $87.6 million in 2024, down 21.1% from $111.1 million in 2023[326]. - Basic earnings per share attributable to Company shareholders fell to $2.81 in 2024, down 21.1% from $3.56 in 2023[326]. - The Company reported a comprehensive income of $25.8 million in 2024, significantly down from $122.4 million in 2023[328]. - The Company recorded total transaction losses of $8,395,000 in 2024, compared to gains of $1,265,000 in 2023[356]. - Total other (income)/expense, net for 2024 was $1,721,000, a significant improvement from a loss of $6,163,000 in 2023[478]. - The net income attributable to the company for the year ended December 31, 2024, was $87.623 million, a decrease from $111.120 million in 2023[497]. - The basic net income per share for 2024 was $2.81, down from $3.56 in 2023, while diluted net income per share was $2.80 compared to $3.55 in 2023[497]. Assets and Liabilities - Total assets decreased to $1,648.7 million in 2024, down from $1,835.0 million in 2023[330]. - Cash and cash equivalents at the end of 2024 were $115.3 million, a decrease of 33.5% from $173.4 million at the end of 2023[332]. - The company has $17.0 million in defined benefit pension plans for 2024, with plan assets exceeding projected benefit obligations[387]. - The pension benefit obligation was $137.1 million, a decrease of $21.2 million from the previous year[454]. - The fair value of pension plan assets decreased to $103.1 million as of December 31, 2024, from $112.7 million in 2023[458]. - The funded status of the pension plans was $(33.97) million as of December 31, 2024, compared to $(45.64) million in 2023[458]. - Total plan assets as of December 31, 2024, amounted to $103,137,000, down from $112,688,000 in 2023[465]. Revenue Segments - The Machine Clothing (MC) segment generated revenues of $749.9 million in 2024, up from $670.8 million in 2023, representing a growth of about 11.8%[416]. - Albany Engineered Composites (AEC) segment revenues totaled $480.7 million in 2024, compared to $477.1 million in 2023, indicating a slight increase of 0.7%[416]. - Revenue from engineered fabrics in the MC segment increased to $107.3 million in 2024, compared to $71.2 million in 2023, marking a significant growth of approximately 50.7%[418]. - Heimbach contributed net revenues of $141.6 million in 2024, impacting the Machine Clothing segment's operating income negatively by $20.0 million[436]. - Approximately 36% of AEC's net revenues in 2024 were related to U.S. government contracts or programs[428]. Debt and Interest Rates - As of December 31, 2024, the company had variable rate debt totaling $146.8 million, with an increase of one percentage point in weighted average interest rates potentially increasing interest expense by $1.5 million[304]. - The company has a significant amount of variable rate debt, with USD borrowings at an all-in interest rate of 6.00% and EUR borrowings at 4.40%[304]. - The company is subject to risks from fluctuations in foreign currency exchange rates and interest rates, which could materially impact operational results[301]. Taxation - Total income tax expense for 2024 was $29,034,000, a decrease from $48,846,000 in 2023, representing a reduction of approximately 40.5%[481]. - The effective income tax rate for 2024 was 24.8%, down from 30.4% in 2023[481]. - Cash payments for taxes amounted to $47,300,000 in 2024, compared to $54,500,000 in 2023, indicating a decrease of about 13.5%[487]. - The company recorded a net tax benefit of $5,000,000 in 2024 for the establishment of a deferred tax asset in a foreign jurisdiction[483]. - The total deferred tax assets as of December 31, 2024, amounted to $27.897 million for the U.S. and $35.312 million for non-U.S. operations[491]. Pension and Benefits - The company made employer contributions of $8.7 million to pension plans in 2024, up from $3.6 million in 2023[458]. - The net periodic benefit cost for pension plans in 2024 was $3,047,000, an increase from $2,805,000 in 2023, while the cost for other postretirement benefits was $1,304,000, compared to a cost of $(1,328,000) in 2023[460]. - The company recognized a net actuarial loss of $19.5 million in accumulated other comprehensive income as of December 31, 2024[458]. Risks and Compliance - Future funding and compliance risks are associated with contracts in the Albany Engineered Composites segment, particularly with government entities and OEM customers[14]. - The company faces risks from large customer purchase reductions, payment defaults, or contract non-renewal, which could adversely impact financial performance[14]. - The company may experience costly and disruptive legal disputes and settlements that could affect its financial condition[14]. - The company has undertaken no obligation to publicly update or revise any forward-looking statements, except as required by applicable law[14]. Acquisitions - The Company completed the acquisition of Heimbach GmbH, a manufacturer of paper machine clothing and technical textiles, on August 31, 2023[335]. - The acquisition of Heimbach, completed on August 31, 2023, is now included in the MC segment's financial results, enhancing its market position[425].