Albany Plans To Sell Structures Assembly Business, Sees $147 Mln Loss Reserve Adjustment In Q3

(RTTNews) - Albany International Corp. (AIN), a maker of engineered components, announced on Tuesday that it is exploring strategic alternatives for its structures assembly business, including a potential sale, or a part of the business at the Amelia Earhart Drive Facility in Salt Lake City.

Further, Albany expects to recognize around a $147 million loss reserve adjustment for the third quarter. This is primarily related to higher than expected labor content and higher material inputs due to inflation associated with performance of the CH-53K contract, inclusive of changes in contract estimates.

Gunnar Kleveland, CEO of Albany International, said: "We now recognize that without changes to the contract there is no path to profitability on the program as originally bid. This adjustment represents the full loss anticipated over the remaining eight year life of the program."

The company is in talks with its customer on potential contract modifications to reduce increased costs.

Albany International is scheduled to release its third-quarter earnings report on November 5.