Exhibit 99.1
ALBANY INTERNATIONAL PROVIDES UPDATE ON SHORT-TERM
PROSPECTS IN THE COMPOSITES BUSINESS
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Albany, New York, August 19, 2008 - Albany International Corp. (NYSE:AIN)
reported today that Eclipse Aviation, a significant customer of Albany
Engineered Composites (AEC), has indicated that it was substantially reducing
production of the Eclipse 500 jet, and planned purchases of components from AEC
and other suppliers, for the remainder of 2008 and the first half of 2009. Based
on information provided to date by Eclipse, purchases of AEC components are
thereafter expected to return to and then exceed previous levels.
Sales to Eclipse have accounted for a significant portion of AEC's 2008
revenues, as well as a significant portion of production at AEC's facility in
Boerne, Texas.
The Company has earlier indicated that the near-term annual sales growth
potential of AEC was approximately 35 percent, and that AEC had reached
break-even profitability at the end of the second quarter of 2008. While the
Company expects that aggregate revenues for 2008 will still exceed 2007 revenues
by 35 percent or more, lower sales to Eclipse will reduce Q3 and Q4 sales growth
significantly. Profitability of AEC, which had become positive at the end of Q2
2008, is now expected to fall below break-even and remain below break-even until
Q1 or Q2 2009
The delayed sales are also expected to reduce the rate of 2009 revenue
growth substantially. The Company still expects substantial growth in
non-Eclipse AEC revenues in 2009, but an overall 2009 compound annual growth
rate of 35 percent over the base year 2007, while still achievable, is now less
certain.
(more)
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Albany International Corp.
PO Box 1907
Albany, NY 12201 USA
www.albint.com
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The Company will provide an update of management's view of AEC's near-term
growth prospects in future earnings releases. In the meantime, these
developments have not diminished management's continued belief in the previously
expressed long-term growth potential of the AEC business.
Albany International is a global advanced textiles and materials
processing company. Its core business is the world's leading producer of
custom-designed fabrics and belts essential to the production of paper and
paperboard. Albany's family of emerging businesses extends its advanced textiles
and materials capabilities into a variety of other industries, most notably
aerospace composites, nonwovens, building products, and high-performance
industrial doors. Additional information about the Company and its businesses
and products is available at www.albint.com.
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Contacts:
Investors: Media:
John Cozzolino, Vice President Susan Siegel, Director
of Strategic Planning of Corporate Communications
518-445-2281 518-445-2284
john.cozzolino@albint.com susan.siegel@albint.com