OREANDA-NEWS. March 20, 2007. Sales for the year increased by approximately 2% while net income from continuing operations increased by 333% to $6.7 million, reported the press-centre of  AirBoss.

The increase was attributable to a substantial year-over-year improvement by the Company's Rubber Compounding division and a strong performance by the Railway Products division. Improvements in gross margin were due largely to manufacturing improvements and the elimination of prior year losses from the temporary US manufacturing location. Demand from customers in certain sectors, such as rubber compounds for mining belting, rubber tracks and automotive parts, softened in the fourth quarter and this will continue into 2007. Despite this weakness, we continue to be optimistic that 2007 will result in a continuation of the trend of increased volumes and profitability year-over-year.

Earnings before interest and taxes increased by 62% but were negatively impacted at year end by non-cash losses of approximately $0.5 million due to the unrealized foreign currency losses on the revaluation of outstanding foreign exchange contracts and long-term debt. It is the Company's policy to sell forward each quarter 50% of the excess US dollars expected to be generated by operations in the next quarter. At year end, all forward contracts outstanding were revalued at the year end exchange rate.