AIN - Earnings call transcript Q2 2022 | Albany International Corp.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Albany International Q2 2022 Earnings Conference Call. [Operator Instructions] As a reminder, your conference call today is being recorded. I will now turn the conference call over to your host, Director of Investor Relations, John Hobbs. Please go ahead.

John Hobbs

good and Alan you, morning everyone. Thank Albany to International’s second call. conference XXXX quarter Welcome

for the and their our GAAP. listing to a regarding measures of those As reminder and a is on of Contained the release notice certain last the financial release results. forward-looking our issued to call, use night, associated financial detailing statements reconciliation quarterly our in text the press refer please non-GAAP

verbal uncertainties, our remarks the effects of that of effects results. statements our financial among markets For risks on of apply the potential invasion Russian make and will the call, of this Ukraine the contain of forward-looking the morning. same those which the are this statements our purposes and conference number COVID-XX and are serve we potential operations, Today to that pandemic we a

a release including this measures, non-GAAP discussion, our earnings our call, full XX, SEC XX-K. as filings, their including our we on please most to a reconciliation comparable GAAP XXXX as of may to use well of For July refer measures,

to turn I remarks. over Higgins, our Chief Now, opening call Executive Officer, provide the and President who will will Bill? Bill

Bill Higgins

quarter everyone. will and John. and morning you, in detail. our Today results will more cover you Stephen comment then call. welcome, Thank joining for second on Good our conditions earnings I Thank business our financial

quarter, LEAP a helicopter with another revenue $XXX on production of strong CH-XXK from reporting with The driven revenues the recently basis. content sequential and We growth won by a and are year-over-year Sikorsky. million, up we was both rebounding

our QX doing of manufacturing a per in share growth year. facility. program this our our $X.XX than share adjusted Salt gains. higher of great in last $X.XX EPS $X.XX includes foreign per Lake $X.XX expanding job EPS of exchange City Adjusted excited are was teams reported GAAP capacity EPS are about revaluation We and

on down Segment business a from last remained our from great in market. Our year’s strong. Overall, customer exit constant another levels, were of exceptionally condition our Machine Clothing basis quarter. sales Russian result customers demand strong X.X% the steady. segment had that remain a currency is part Underlying

MC job with more have EBITDA maintaining inflationary gross outstanding again they margins the adjusted pressures experienced, Our XX% than delivering margins done has margins, over XX%. team an despite of

our forward customer’s the continue year-over-year This supply flow keep remains Looking to teams environment, business, even into in more job MC demand to machines are from pushing where to ability customers with chains running that and seem their to resilient essential despite been ability products, meeting Machine important and levels success deliver the on have is ability healthy ever that demand in challenges in present. they attractive general, markets logistics has resulting In great our dynamic cash and supply value done constrained our Clothing navigate increases the order their a to have this become for papermakers to enjoy price chain up QX. demand time. going operations.

$XX million, the just LEAP Our the increase revenues mix production. as good primary improved. XX% I by revenue year-over-year reported the of mentioned two, driven and segment year-over-year quarter Composites in The Engineered Adjusted from significant margins a revenue growth as two content rebounded delivered earlier; one, factors: to EBITDA a well. segment CH-XXK under

ongoing idled production in temporarily have warm. keep Therefore, order Boeing of quarter, our line XXX would Boeing XXX frames production to us no notified the During frame they cover longer our manufacturing. we

in a programs. minute. performance growing will with And those employees excellent are Stephen XXXX, in which segments, to other both continuing company-level guidance redeployed we raising have We for cover

to Tight how through labor material availability, recruit challenge logistics, we able the another inflation to comments talent few it. Let Supply is me teams. in environment being this continued a environment. constraints, on and chain our managed have markets challenge and make

Our teams together. working have by remarkably managing it, through well done

For overcome and and connects manufacturing supply performance. approach we uptime delays, operations and chain chain that material a with customers cross-functional taken have and supply shortages optimize with example, to to engineering, with

been profitability. deliver able to time on and have We maximize

this places inflation our businesses have both our operating experience inflationary global pressures close Machine worked an and to higher increases. the footprint with impact contracts advantage with offset In our the on our and to continue our improvements to cost across helped us productivity continue many selective of nimble Clothing, we We and our remained our in hard has of price Engineered Composites, In operations environment. soften of customers, to ongoing support structure customers. results. In

We pricing very level successful was and and customers, the a just early stabilizing. Farnborough are we from and be to Engineered of availability by aerospace encouraged where current appear potential with peers returned engagement exceptional. signs In Airshow, suppliers that industry Composites, transportation

increasingly us. business for positive opportunities, growth During customers. into were which confirmed both teams from translates are of partner of in our but of – recognized airshow the both most performing. show, opportunities all the as comments both industry I our nothing how I of discussions a our proud in are dependable preferred heard we am segments The choice. and that And in that, teams future about of because our

growth to performance. enables future. it. our to our rock is us continue Our of our we continue And are sheet because in invest to And new customers opportunities pleased balance which solid, with pursue

that, I’ll it with So to over hand Stephen? Stephen.

Stephen Nolan

Good results about the to year. quarter about our Bill. the for everyone. will balance of for the first and you, I talk then the morning outlook updated Thank

quarter, from In to Adjusting sales the year. euro by million For second the U.S. compared last increased Clothing, and Russian XX.X% net tissue translation translation million, engineered by Engineered in market. These in the on sales, grades. growth translation sales were the again previously by production packaging exceptionally quarter F-XX net partially quarter. adjusting by the platforms. relative fabrics, net announced for to quarter after same effects, the the and CH-XXK strong Machine declines currency effects, XX.X% currency compared second sales year-over-year principally an adjusting XXX last currency to $XXX.X by decline were driven in for driven year, year-over-year on of declines the for exit were partially LEAP in $XXX.X nearly of a X.X% delivered effects, and also XX%, company total grew Composites’ an the with dollars, decline offset down our net increase

compared quarter During LEAP just in same program the year. quarter, the million generated million over $XX revenue under the a $XX little last to

line was reduction MC the gross Similar Second to mix $XXX.X of the the result overall outpacing segment, that points of last a profit of company net XX.X% from XXX for quarter, top first due declined to quarter XX.X% by comparable gross of the a sales. shift margin as X.X% year. period million, the from the basis growth AEC’s to

net declined XX.X% to by gross $X million same contract by of net effects by declined partially offset by from segment, one-time basis sales and sales this XX MC over to effects. input the to which mix of from million the in Within favorable the XX.X% year, release. gross net accrual points primarily XX.X% year just due change was margin quarter to $X lower caused a profitability, XX.X% Within and mix margin compared last AEC, a long-term costs to over higher

to XX.X% by higher about and in $X.XX decreased quarter $X.XX a this in gross million expense restructuring period Clothing and to currency Adjusted lower year. The adjusting was earnings effect XX.X% decreased prior net expense. quarter. and EBITDA quarter the last year. the to to Other to XX.X% expense. XX.X% quarter. the million this year, GAAP last the prior the to sales offset $XXX,XXX compared to down quarter revaluation quarter. of partially attributable million, was Total year $XX.X Net the was revaluation primarily net the quarter the favorable of the effects. the an income year. in last and as up for in $X.XX and or currency of increase beneficial $XX.X million profit in caused $XX about the by sales. Machine income million percentage in from to quarter driven income in primarily quarter offset by for net million foreign expenses adjusted tax compared research gains for this compared quarter. about lower higher beneficial Machine was XX.X% STG&R, about revaluation year, associated company After due prior to million, operating in other million, by most last $XX.X or adjusted the gross foreign with million, offset AEC differences discrete rose primarily for expenses the selling, year’s improvement operating profit due from was expense the of XX.X% to million was in decreased was or million company million $XX.X was net driven the to by quarter quarter by Clothing rate The net period $X $X.X sales per income last from $XX.X million per share last year million, year. $XX Second foreign a period general, in from recent income and expenses quarter. integration, income adjusted the XX.X%, $XX.X partially was prior $XX.X acquisition same AEC currency quarter rate share, the $XX.X in same compared from of impact income losses, same The $X higher technical, adjustments of sales, by of more tax expense, compared partially and STG&R year lower earnings of $XX.X current while XX.X% quarter EBITDA by this sales decreased this EBITDA by to from more income or driven up CirComp operating X.X% $X.XX netted

operating generated During in the less used million. company cash net capital defined of quarter, $XX.X the activities about cash free as flow, expenditures

quarter share had to again, difficult good $X $XX decline top I second a currency quarter, with we like North on now during our an the over of from of repurchased in the XXX,XXX due quarter, cash Clothing very almost line in was balance The a comprised over defined returned our comparison $X.XX. over shares exit end year. quarter, of We investors, and to million trailing leverage for cash in and quarter revenues $XX average cash the million effects, months a regular equivalents EBITDA, XX the of Once debt to decline XXXX. Machine financial American ratio, in provide about second million at driven dividends and our repurchases. an in update guidance the the market. divided adjusted total price of to would less as largely strong was At net timing a by $XX.XX. the second our the During Russian

on revenue we euro we had U.S. impact more X had quite expected even seeing not as from currency months certainly ago with to the be effects this are close We than anticipated the dollar. parity to

our remains from second for guidance $XXX are rising the in for of the demand higher million. all compared orders in perspective, year profitability million to input issued reaffirming our to strong quarter globally, with of we previously last seeing However, range a the revenue products are Therefore, we $XXX segment impact a same costs. regions. From quarter some

to margin Our quarter, month X the year-over-year XX months. the the compared quarter. points was a And the little gross trended lower it down in in within basis third first

initial expected impact our now guidance. $X about every and million to year, continues higher is full inflation quarter the rise than we the when For provided from

drive However, the of is the efficiencies, continuing of to some offsetting MC inflation. team that impact

are a $XXX As we raising EBITDA also our seeing impact of still end helps lower still resulting we modestly to ago, results, revised products, for maintain our good range from $XXX margins. we see demand for in which discussed expect factors million. million adjusted guidance in a year-over-year our while and Therefore, full I of are the segment, year inflation moment other the strong to

did primary to will to the Turning the quarter. for results Composites, we of communicated win, Aft the we we change driver quarter new program you Engineered that that discussed The we positive When is be what on not balance and during last had for the revenue indicated that anticipate materially program. last recognizing year material CH-XXK this of Transition XXXX. than higher that

on the of relevant As are majority as program. incur under required cost revenue standards the recognize we programs, to the you are vast we aware, on the accounting AEC’s

changed. Since incurred program However, Transition we led on on contract of over Expect have us that things represent at a about recognition have cost Aft it to revenue the $XX revenue non-recurring program. have would two anticipated million and time to of production deferring the then, then XXXX. life structure amortizing the the in that

we different than May, us had resulted our customer treatment late completed and than with second, in customer, to originally anticipated. has our anticipated. its and the had accounting negotiation somewhat First, we production form And we of assembly contract earlier the in begin final work asked

changes, As revenue program year. a now result from of the CH-XXK be we Aft this significant those recognizing Transition will

million in During of Bill the to to year. already discussed And related revenue close for to recently to in program recognize recognized completed revenue we the largely on $XX $XX frame million quarter, we has expect close idling tooling the full the our production. XXX expenditures.

by $XX other programs we for for F-XX year, LEAP dollars as raising expect are guidance about million of still are $XXX a year million $XXX full in program, both lower compared Our expect the ASC million, which million. XXXX. running over revenue resulting range range upper we AEC the for the our which for to including million $XXX to the deliver of and we segment, to and full expected, down full the program, year be $XX to the in the revised end Overall AEC

$XX We income the adjusted updated $XX and million of share expenditures and the million, $XXX of between are XX%, $XX million, work up to per as of to between we guidance $XXX between hard our $X.XX; our million At $X.XX we million; million, $X.XX also million earnings $XX unchanged; $X.XX and prior million. XX% guidance of million the $XX to updating adjusted level, for of guidance between issued of and EBITDA $XXX to billion, from prior GAAP of $X.XX; employees company between range in $XXX our from of and for updated updating guidance $XX and guidance from present, range and million. are all $X.XX to of prior of and thank $X.XX, tax between of of adjusted AEC from up to $XXX range capital million; from million our want Returning updated $XXX the updated of share that effective segments, also million but our of great our future. the the like in previously the we $XX to performance able $XX rate to and million in to XX%; $X.XX, recent EBITDA guidance our that, from only the to year. earnings call to down range good million range per open XX% in million, depreciation prior of led to about that to guidance amortization with prior from $XX outlook revenue this pleased the were for would follows: prior $X.XX feel $XXX full-year a at notch the point quarter. questions. I’m And both not the the Alan? up I near-term, We into for between

Operator

are Go go first Michael please. having we One of We the Truist ahead with will some Instructions] difficulties. moment, Ciarmoli, ahead Go [Operator to line Securities. Ciarmoli technical please.

Michael Ciarmoli

here. a Steve, and anything just guess, questions. guys. I there Thanks unknowns. cross-currents, year, lot of taking Bill Hi, lot Nice of a at obviously the – remainder looking quarter the is the morning, good of for or

really really at low The to did revenues guess, pretty the what could puts second the terms are fall the a in that drive What half, down, I in EPS the risk to implies flat that first off the of low half. factors seeing down range drive kind the are versus there? What of big you end you that range? and of end takes you

Bill Higgins

as XXX as Engineered at then we move is of a summer typically Composites, we the Clothing we now. a work the for contribute really to but nice we’re now into little a in kind bit of into we’ve the had idled business, And we’ve Yes, a job lower. season I think production Machine said, and kind expected start, bit. – – least I little this Boeing doing there, that fall line

Steve, So to anything want know, that. to I don’t if you add

Stephen Nolan

effect. which about half our the year Machine greater than the we half of Supply Yes. in the have Look, talked we of costs, the costs, there Clothing, to FX be year. the expect pressures input back chain are first in

to the time the to $X.XX we’re against last $X.XX. us. we averaged parity U.S. FX to year, we’ve As about year, $X.XX swing first half. But you continue about dollar. This euro in now, close right had This know, averaged with, through

effect than we’ve half the half first it currency, just parity So we right sticks seen that of to the now. in at see around, in the half, this assuming expect second level

the us hit They effects within our half half. second those first did in of year. more the will guidance. So in And certainly certainly that’s the embedded

Michael Ciarmoli

looking Does That’s said Obviously just it. to then you got million. that Got complications, you Composites And back change we’ve ‘XX, it. get Got in out here? chain Engineered supply to helpful. anything XXX CH-XXK any moving ‘XX? idled, intact. parts thinking, even guess obviously become Or that $XXX the a assuming now to the still million? small, does in I I’m contributor just bigger but it’s $XXX

Bill Higgins

moving there I We and right? up faster to which XXX We anticipated. growing really coming directions here. both have than parts that’s a about, CH-XXK, are halt had And here, we’re we that’s the yet. to moving – excited There would don’t in pick going the anticipated we parts. are line back when know not had

our still mind. just mark that’s So question a in

So the with come like more to to on information defer that. we’d year back in later

Stephen Nolan

recognizing Certainly, material XXXX. CH-XXK a the better revenue, this pull want you where that on performance originally we not from Yes. I year, had anticipated forward as viewing don’t

over If bulk period. going that recall, XX-year of the was a revenue be deferred you to

impact to year. recognizing on And XXXX downside the from so it fairly this has a minimal revenue that

we’re so December timeframe. prepared Board our the look, bigger plan XXXX Quite do the half the frankly, of by in roll-up full change. a As for the XXX approved in is we year, annual our the Bill next of said, back getting

see any we we will So do we change. if material as update that, you

Michael Ciarmoli

the there, the any idling If modest color shortly give we here start from in the up burn-down if how me period Last we but maybe XXX, it. in we might will news get on back next like, be week about restart question Got hear are watch, frames. at many of can terms Boeing, a frames they you us assuming what volumes? or inventory for

Bill Higgins

today. I on not into inventory sections to Michael. system wish sure I at don’t good other that We could, real and assemble in the what can. visibility I or it looks the frames companies like I’m how supply have Boeing, the

Michael Ciarmoli

it. Got Thank Understood. you.

Operator

the line Global. next will with to We Pete ahead. go of Go Alembic Skibitski

Pete Skibitski

Nice Hey, quarter. good morning, guys.

Bill Higgins

Pete. Hi,

Pete Skibitski

CH-XX. your on about wasn’t this comments follow-up I million start, just Maybe just that portion. to if Stephen, a program the Aft $XX sure or on the year CH-XX, all-in was

So maybe that directionally about so into also? that. should just you can program grow think XXXX, clarify continuing to And we –

Stephen Nolan

Yes.

So just larger. the gave program. would $XX million for Transition was the of Aft much, be I CH-XXK the us entire component much program for The

dip you we from As into rate, are Aft of year bit Right expect about the to XXXX than into given we on we’re incurring now expenses, XXXX the likely be. XXXX think actually program, which the expenses annual to production. within a larger the expenses, tooling are just transition run a production as move non-recurring

quarters materially we go we outlook, you’ll grow production, the not starts into again. the for a to shared within couple of as it revenue XXXX, So embedded is little ago. previously a we let’s different $XXX actually than before say, you forecast of million what see had different with a bit Look,

we’re should see as what that. CH-XXK changing So think year recognizing you don’t this I

Pete Skibitski

Right.

Okay.

a mean, so Okay. coming And I strong number the you quarter despite like – were was this guys being it on into down. follow-up cautious, margins. XXX I then pretty quarter. AEC feel just a

directionally pretty there. got XXXX and a is CH-XX that margin program you that for healthy surmising I’m you’ve into tailwind some So

Stephen Nolan

like certainly. one a program. We’ve price true our average lower fixed It more program be than a previously typical of be of margin. being not Its would has margins LEAP fixed-price line would cost-plus be like would talked That about CH-XXK. CH-XXK in more programs.

Pete Skibitski

Alright.

that’s Okay, great.

in queue. Okay, get I back will guys. Thanks,

Stephen Nolan

Pete. Thanks,

Operator

ahead to please. We Cowen. Khanna next of go Gautam line will with Go the

Gautam Khanna

of Yes, questions. couple

to am First, could there And could either demand, any view of channel? in curious address pricing, – have currency headwind and if – still we excess I those on then is the AEC. if to sort is you Machine currency you just Is that what Clothing, switch you. if inventory there two, actually

Stephen Nolan

sales we sales in we No. we those have your falls no, as first, To XXX demand the over And answer any U.S. dollar, product. don’t think in obviously, have to Other U.S. seeing it’s headwinds the just fall. driving dollars are second therefore not I dollars. material as euro for than, underlying currency. It’s demand as question that translation million from we recognize discussed a the against But part before, euros. our in effect of of

our material our of If of all. dollar concerned the lot we not driver pricing that currency against Machine has are more where and our expensive, fallen our products in that’s you U.S. local and Clothing demand the dollars a really are in are products for now of regions at a products –

Gautam Khanna

then maybe the And inventory on million thought excess, of $XX levels, current…? you previously what’s your

Bill Higgins

Yes.

watching inventory. There we inventory We may still the expected. not severe are be in had as the is build as system. It some

to all think And bottlenecks. without customers to our logistics, get natural reaction don’t caught belt. it’s a a probably the supply want I chain,

of ship of have Atlanta, Pacific We heard have industry with across competitors across that that the struggled delivery. in the other kind some

don’t big natural little thought. see So, it as have a I there as I is to extra inventory, now a but right a as a we possibly think inclination problem

Stephen Nolan

to that. certainly – Gautam, than than we it’s our Yes, the no in now, range. you assessment communicated current no our number is that’s it’s before, $XX million larger From larger the right

Gautam Khanna

then helpful. of AEC, that’s And No, Okay. to I had couple switching questions.

positive in First, can quantify you the EAC – quarter? the the

Stephen Nolan

was just positive the to $X over million compared XXXX. in in $X range quarter same the Sure. roughly It million

Gautam Khanna

what sales thinking for win? I understand so sure $XX-ish of I want think expected program original about something aggregate year, year? to that understand then changed? Can what us so, the Great. And you earlier and ballpark the And the this million will just Was tooling. Aft of the I years. level the grow plus make And non-recurring or said I next XX you like then clear $X because to $XX give said then want entire to – be be on CH-XXK. And a program you the just year million…? about if million that over a just

Stephen Nolan

Yes.

Okay.

Sorry speaking you. for over

certainly, and we in non-recurring equivalent the to which non-recurring do expected both into the engineering, year, about at of But – look would not million work, we expecting revenue. to were we $XX cost recognize going been as So, coming had tooling in be to on be We we just any revenue. that would on sheet were so inventory a balance lower the putting to at somewhat it, margin because put wouldn’t at have cost.

in We And would will period. then be recognize subsequent the roughly putting production over as we that inventory. XX-year revenue

period. expected we had all as of $XX we So, a incur the that to revenue recognized sorry, a about million or XX-year – year being recognize $XX is million $X of this cost. over million that year year Instead,

if and the work, which Transition and what tail the but we this also the The had talk Transition to not the legacy which means $XX we I is of both now, take. about in program or program which sponsons for CH-XXK call work. is aggregate, In Aft the are future, will generate aggregate, $XX we doing We revenue, will million really about million additional this our just doing generating anticipated some year, larger – we revenue are year work in another the of include give going – legacy structure. about Aft program,

Transition Aft So, that legacy year roughly same work. work the is as this the size

year – of million in $XXX recognize will will something revenue. like in this aggregate, result So, CH-XXK

Gautam Khanna

or aggregate, decline because of grow that year, will of in it $XX next And non-recurring? million

Stephen Nolan

our material finalized I some growth certainly haven’t plans for are be could of we we you have don’t as that and will don’t on flattish. puts year. decline, whether it see Look, next don’t kind There or I I expect that. indicate. expect Yes. – a takes,

Gautam Khanna

is – the where period a have there was dip there There tooling. right, for a we dip, a

Stephen Nolan

we program. seeing are legacy growth some in the But

So, issuing it year not next material certainly, we for is year. next guidance Gautam. yet, don’t there – dip But we are not a obviously,

Gautam Khanna

asked, are am LEAP, And the but are we $XX are where GE the or because with where you said like? one the respect quarter, to one Where revenue to, no inventory curious, Thanks. behind, just do that – at generally the I shipment million-plus any respect if on you hate this, with last tracking of rates today, on you LEAP, with disclosed and all, just ahead? I in to you are

Bill Higgins

Yes.

just we them for we rate. me Let plans our LEAP set set that pretty the stable when with remind year, everyone production,

at every look the month, we the week, you aircraft growing whatever – wouldn’t growth, with – production us production it’s when So, rate. see every airline with the

for year. are plans then we we So, a at what back on come set track And this and will higher we year. reset our for for level next

Stephen Nolan

loading that LEAP on excess But as I Bill LEAP there mentioned it, at at for ago, all. our we three somewhat right level during expect is are we effectively because no inventory the months year, discussing inventory program now targeting. we inventory level And in the don’t books our to expect the keep is absent, as talks about,

Gautam Khanna

you. Thank

Operator

moment One please.

next ahead with the go Baird. will Go Arment line to please. We of Peter

Peter Arment

seem feels circle like Yes. Good like last back know been not things months on want to are a it at sides. we the just are things morning of It shaping color hearing you have on Stephen. you could we quarter. I your feels chain things any on on it how – Nice actually, – and could Bill, you maybe managed few guys trajectory Bill have are comments. in the if have between I both or AEC. gotten Maybe improvement, just MC you Maybe any terms if out and seeing better least little not to gotten through what supply worse, to quite better. describe about well. be of But

Bill Higgins

challenge for chain It’s like, we business the reviews. every It been a quarter. do just has Sure, seems supply different Peter. our Yes, continues. while. a story a It

comment. was or little shipping my a So, of whether the raw little a logistics and that shipping gotten it material, the seems better. it would materials be has it’s The on side, bit products, better of finished like

But materials. of Some containers the supply we are still are watching available.

those. watching availability chemicals about yarns resins raw it’s materials, is in with the or still chemicals, on Russian Europe going So, put supply resins are other into with that and the or we There used the you process. would watching are gas on or think whether secondary effects what’s we that

we think we our of I materials. are basic lot So, fortunate products. We sense in the use that build a

sub-components We other with. that embedded struggling companies chips are are buying and things not and

an So, control our over little it it’s been But have But supply more do sense a better. little challenge. chain. we bit a bit maybe I has ongoing

think the I We better. are looking it, for it’s a little optimism but in

Peter Arment

that’s, with are as dealing I piece up labor you ability ramp there well. kind know the on the just AEC? seeing And labor mean your everyone’s I of back mentioned constraints. you in that. to What

Bill Higgins

we been ramping Yes, up. have

we people And have are it’s actually in The multiple been markets challenge. still a So, been tight. labor adding locations.

watching well. as We are side compensation

far have is, been pipeline training is But labor and tight market. kind it very are able of in way not thought play would still recruiting we it through a challenges our it it’s we the bringing manage So, predictably them people it of and but we it, in to out. onboarding our infrastructure working easy,

Peter Arment

Thank color. you. the Appreciate

Bill Higgins

Thanks.

Operator

We from ahead. have follow-up Michael question Go with Ciarmoli Securities. a Truist

Michael Ciarmoli

rates, it guess I on piggyback sounded I COMAC the was engine, Hey changes mean we of follow-up. about expect any points. effectively on with choke of LEAP certification Gautam because for anything of LEAP, bigger the one asking ramp-up you the Maybe had change customer the your guys like hearing, keeping sync supply what pending Do program? you the demands? the kind of or guys being you taking are set lack guys. your Thanks just to keep in

Bill Higgins

issue don’t yes, Michael, keep of Peter’s labor. Yes, your able capacity have about to we are we question, can’t – up question demand. to with We yes, part a

doing we the that. have capacity capacity, added will have But and our We the needs. physical to workforce, produce to to capacity continue it And even we the we we folks capacity, some we if the have that. have machine do have the current at grows,

are of hearing that aircraft. bottleneck production engines not supply be part reading of the may we about in chain So, or about and the you

in feeling demand. later keep are pretty good year we a year. schedule get new next we with until to won’t So, able up about the and for being And

like what on look I next we can’t might So, comment year. really

Michael Ciarmoli

guys. Thanks Perfect. Got it.

Operator

from follow-up Go Alembic with a Skibitski have please. also ahead Pete Global. We

Your line is open Mr. Skibitski.

Pete Skibitski

of guys. Couple quick Thanks. Yes. follow-ups,

Europe. wondering of starting of I how seeing I revenue on – in are of with kind for color Clothing Machine natural flattish slowdown Just Machine and back for slowdown will are half winter for you people of if are that but use planning things there. region. am in order lead about to sorry curtailing this looking in think in the prep the Clothing, kind kind year? that any the Europe for talk if Thanks. going gas a seeing there yet? you to they Are missed that to Are there And you

Stephen Nolan

there the that Yes. earlier where and some I would general pockets year markets prices have impact the remained are concern types have specific in we has the production. in – was did on see the say, healthy. gas There some we high of about

the pretty few overall, you manufacturers. in has tissue it’s If well, publication up prices production, fuel about up, lot But market after stabilized other on held years. be pressure put last kind the the think went as would that and tissue of of a energy-intensive, decline has – a and gas natural

on good. are supply bit situation it’s and pretty So, and we it’s a feeling overall, Europe, think like the of chemicals natural the materials things. and and When probably about little gas more resins we the in

Pete Skibitski

Okay.

So, on It ready be you? have this item. significant of the this, one I Engineered either or I is both asked sounds but teams guess could for watch of do fall. FLRAA, content guys on that if FLRAA, getting teams? DoD sure like will not Composites. the to helicopter have for contract, And one that the be Last new award you I you a am me on

Bill Higgins

it. can’t with and be who really working We comment we point. are we at this doing are to I on what on love

said, have Sikorsky. a we we with As had really relationship good

So, that’s one we are really closely. working

Pete Skibitski

It Okay. great. sounds guys. Thanks

Bill Higgins

Thank you.

Operator

[Operator Instructions] up. else queuing we Speakers, one no have

Bill Higgins

Alright. Thank for us Alright. the everyone, you, today. Thank on joining you, Alan. call

we always, International. have appreciate in your good Albany continued you, a interest and As day. Thank

Operator

XXXX, XX, Ladies at will available today, July the through made be XX replay end midnight. at and a.m. gentlemen, this for beginning of September conference

your toll-free is conference XXX-XXX-XXXX, will During AT&T the again XXX-XXX-XXXX code and Teleconferencing. internationally area and participation call using XXXXXXX. access for with AT&T you access conclude today. you internationally your XXX-XXX-XXXX service code are that may the again XXXXXXX. by code That toll-free time, access code playback the for Those area Thank dialing XXX-XXX-XXXX, numbers for Event

may You disconnect. now

Albany International (AIN) 26 Jul 222022 Q2 Earnings call transcript