Posted August 3, 2017

Jason Industries reports 7.1 percent sales decline

Jason Industries reported a net loss of $3.5 million, or 17 cents diluted loss per share, for the second quarter.

Net sales of $172.5 million decreased 7.1 percent and included a negative 2.1 percent impact from the planned exit of non-core businesses in the margin expansion program and a negative 1.3 percent from foreign currency translation. 

In the company's Finishing segment, which includes abrasives supplier Osborn, net sales of $49.8 million decreased 6.4 percent, including a negative foreign currency translation impact of 3.7 percent and a negative 2.6 percent impact from the exit of a non-core market in Brazil. Organic sales decreased 0.1 percent and were impacted by strategic decisions to exit low-margin business and products, partially offset by higher volumes in industrial end markets. 

In June, Jason announced the closure of an Osborn manufacturing facility in Richmond, Virginia as part of the company’s ongoing footprint rationalization. Operations will be consolidated into an existing facility in Richmond, Indiana by the end of the fourth quarter. 

“While revenues decreased with lower volumes in certain end markets, margins improved in three of our four businesses with better operational performance. We increased our liquidity and made progress in lowering our leverage by improving operating income, generating cash and retiring debt,” said Brian Kobylinski, chief executive officer of Jason. “We also continue to gain traction with our targeted growth initiatives.”