Allient Inc. reported a decline in financial performance for the third quarter and the first nine months of 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, revenues decreased by 14% to $125.2 million from $145.3 million in 2023. Similarly, revenues for the nine months ended September 30, 2024, fell by 7% to $408.0 million from $437.6 million in the prior year. The decrease in revenue was attributed to reduced demand in the Vehicle and Industrial markets, which led to changing order patterns and longer delivery timelines.
Gross profit for the third quarter also saw a significant drop, declining 17% to $39.3 million from $47.5 million in 2023. For the nine-month period, gross profit decreased by 9% to $127.3 million from $139.3 million. Operating income for the third quarter fell 44% to $6.6 million, while for the nine months, it decreased by 33% to $23.6 million. Net income for the third quarter was $2.1 million, down 68% from $6.7 million in 2023, and for the nine months, net income dropped 49% to $10.2 million from $19.8 million.
The company’s basic earnings per share reflected this downturn, with Q3 2024 reporting $0.13 compared to $0.42 in Q3 2023, and for the nine months, it fell to $0.61 from $1.24. Adjusted net income for the nine months was $19.5 million, down from $28.4 million in the previous year.
Allient's strategic initiatives included the completion of acquisitions, such as SNC Manufacturing Co. and Sierramotion, aimed at leveraging synergies for future growth. The company incurred $25.2 million in acquisition-related costs for the nine months ended September 30, 2024, compared to $11.0 million in the same period of 2023. Additionally, the company initiated a cost-reduction strategy called "Simplify to Accelerate NOW," which is expected to yield annual savings of approximately $10 million.
Financially, Allient's cash and cash equivalents increased to $37.1 million as of September 30, 2024, from $31.9 million at the end of 2023. The company reported net cash provided by operating activities of $29.5 million for the nine months, an increase from $27.1 million in 2023. Long-term debt decreased to $407.4 million from $428.5 million, reflecting a reduction in borrowings under its Revolving Credit Facility.
Overall, Allient Inc. faced challenges in revenue generation and profitability amid changing market conditions, while actively pursuing strategic acquisitions and cost-saving measures to enhance operational efficiency.
About ALLIENT INC
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