Albany International Corp. (NYSE:AIN) Q3 2023 Earnings Call Transcript

Rob Starr: Sure. Yes. No. Jack, happy to help. So your math is correct, as we would expect. And we are probably being a bit conservative on top line at AEC, but we are going to see a couple of programs’ volumes in the fourth quarter come off. So we’re just trying to account for that. And as it relates to the margin, that’s really a function of the shift in mix of programs that we expect during the quarter. As you can imagine, right, LEAP we’re running ahead. That will kind of cool off in the fourth quarter is our expectation. So we are expecting to see a higher employed margin. There are some programs like 787 and others, where the margin profile is much better than LEAP, and we’re seeing those volumes pick up in the fourth quarter.

Jack Ayers: Okay. Okay. And then just one quick follow-up on Heimbach. And I appreciate sort of the moving sort of demand dynamics going on there. But Q4 implied sales of like $35 million to hit the $50 million for the year. I mean if we run rate that, that looks like we’re getting to like $140 million. What — is that the right way to think about that as we sort of roll that forward into ’24, Rob?

Rob Starr: Yes. No, yes, the math once again spot on, Jack. But no, you really shouldn’t be run rating Q4 sales in Machine Clothing and at Heimbach. That is definitely seasonally, and I think it’s probably even a bit more pronounced for Heimbach more seasonal in the fourth quarter. So if you look at what we delivered in ’22 for what Heimbach delivered was about EUR 160 million. And we’re certainly working with the team to make sure that the sales volumes stay where they need to stay.

Operator: I would now like to turn the conference back over to Mr. Gunnar Kleveland, President and Chief Executive Officer, for closing remarks.

Gunnar Kleveland: All right. Thank you, Norma, and thank you, everyone, for joining us on the call today. We appreciate your continued interest in Albany International. And of course, if you have any questions, feel free to reach out to John Hobbs, our Director of Investor Relations. Thank you, and have a good day.

Operator: This concludes today’s conference call. Thank you for your participation. You may now disconnect. Everyone, have a wonderful day.