American advanced textiles and materials processing company Albany International Corp has reported an increase in net revenues to $313.3 million in the first quarter of fiscal 2024 (Q1 FY24), marking a 16.4 per cent increase, or 16.6 per cent after adjusting for currency translation, compared to the same period last year.

The machine clothing (MC) segment was a notable performer with a 20.9 per cent increase in net revenues, largely driven by contributions from Heimbach. However, this was partially offset by a decline in the rest of the segment, attributed primarily to the global weakness in publication and across all grades in Europe. The Albany engineered composites (AEC) segment also saw a healthy increase in revenues, up 10.6 per cent, the company said in a press release.

Despite the revenue growth, the company faced some challenges. Gross profit rose to $108.7 million, up 9.4 per cent from $99.3 million in the first quarter of FY23. However, the overall gross margin experienced a decline of more than 200 basis points, driven primarily by lower margins at Heimbach.

Selling, general, and administrative expenses increased to $54.8 million, up from $48.5 million in the prior-year period. Operating income slightly decreased to $39.0 million, down from $40.5 million in the first quarter of FY23. The effective tax rate for the quarter was slightly higher at 29.2 per cent, compared to 28.2 per cent for the same quarter last year.

Net income attributable to the company saw a marginal increase to $27.3 million, or $0.87 per share, compared to $26.9 million, or $0.86 per share, in the first quarter of FY23. Adjusted diluted earnings per share were $0.90, slightly down from $0.91 per share in the previous year.

Adjusted EBITDA showed an 8.3 per cent increase, reaching $65.4 million compared to $60.4 million in the first quarter of FY23.

"We had another good quarter as our businesses delivered solid results and are executing to their plans," said president and CEO, Gunnar Kleveland. "Revenue of $313 million, was up $44 million or 16.4 per cent over prior year due to the inclusion of Heimbach and sales growth in engineered composites. In machine clothing, North American markets remain strong. For the quarter we experienced lower organic demand due to continued softness in Europe.”