Allient sales decline 9% in first quarter
Allient Inc., a global designer and manufacturer of precision and specialty motion, controls and power products and solutions reported revenue decreased 9% in the first quarter.
The company said the decline was primarily due to anticipated demand softness in industrial and vehicle markets but was partially offset by strength in industrial market applications where its power quality solutions are needed, as well as in aerospace and defense.
“Our first quarter results demonstrate the strength of our diversified business model and the effectiveness of our strategic initiatives," said Chairman CEO Dick Warzala. "We achieved solid sequential growth in sales and profitability overall as we continue to more closely align our business with our customers and focus on taking the necessary actions to ensure we achieve our long-term strategic goals and objectives. Our 'Simplify to Accelerate NOW' actions are aligned with our strategy and are delivering meaningful improvements to our operational performance and positioning us for long-term success.
“We are closely monitoring the evolving trade environment, including recent tariff developments," he continued. "Additionally, our team is focused on mitigating the impact of the emerging and changing rare earth mineral trade constraints which is introducing new complexities for manufacturers. While these factors present challenges, we remain committed to agility and resilience in our operations. Our focus on innovation, efficiency, and customer value continues to guide us as we adapt to the changing landscape and strive to deliver sustained value to our stakeholders.”
Market Performance:
Aerospace & Defense revenue increased 25%, primarily driven by the timing of key defense and space program deliveries.
Medical market revenue remained flat, as solid demand for surgical instruments and improved sales in medical mobility solutions were offset by softness in pump-related products.
Vehicle market sales declined 34%, largely attributable to reduced demand for powersports.
Industrial market revenue decreased 10%. Strength in power quality sales, particularly to the
HVAC/data center market, was more than offset by lower demand in industrial automation due to inventory destocking by the Company’s largest customer.
Distribution channel sales, while representing a smaller portion of total revenue, rose 21%, reflecting broader demand for the Company’s diversified product offerings.
Gross margin for the first quarter was 32.2%, a slight decrease of 10 basis points compared with the same period last year, despite lower year-over-year volume. On a sequential basis, gross margin improved by 70 basis points, reflecting the positive impact of higher volume and a favorable product mix.
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