Allient Q3 revenue down 14%
Allient Inc. reported third-quarter revenue was $125.2 million, a decrease of 14%, with a gross margin of 31.4% and net income of $2.1 million.
“Our focus on improving margin and operational efficiencies has driven solid sequential improvements, even as we navigate softer demand in key industrial and vehicle markets,” said Dick Warzala, chairman and CEO. “The initial steps we have taken to streamline our operations and reduce costs through our Simplify to Accelerate NOW initiatives are yielding results, with improved margins and operational flexibility. We remain confident in our ability to align with market conditions and unlock further growth as we head into 2025.
“As we look ahead, we expect the inventory adjustments by the majority of our customers to be substantially complete by early 2025, allowing for a return to more normalized run rates by mid-year," he continued. "While we anticipate typical year-end seasonality and continued rebalancing in the fourth quarter, our strategic focus on operational improvements positions Allient to navigate near-term challenges and capitalize on future growth opportunities.”
Simplify to Accelerate NOW Initiatives
Allient continues to make significant progress with its Simplify to Accelerate NOW program, aimed at streamlining operations and driving sustainable cost reductions. The initiatives have already delivered measurable savings and is expected to contribute further to Allient’s financial and operational performance.
Sales in the Vehicle markets decreased 38% largely due to an accelerated decline in demand for powersports. Industrial markets sales were down 9% as strengthened power quality sales, largely to the HVAC/data center market, and incremental sales from the recent acquisition were more than offset by lower demand in industrial automation due to significant inventory destocking by the company’s largest customer.
Medical market revenue decreased 6%, with surgical instrument demand unable to offset lower demand in fluid pump markets and continued softness in medical mobility. Aerospace & Defense sales declined 8%, reflecting the timing of certain programs within the industry.
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