Exhibit 99.1

Albany International Reports Second-Quarter Results

Second-quarter Highlights

• Net sales were $256.2 million, an increase of 18.9% compared to 2017 (see Table 2). Excluding the impact of the adoption of the new revenue recognition standard (ASC 606) and currency translation effects, Net sales increased 17.0% (see Table 3).
• Net income attributable to the Company was $30.4 million ($0.94 per share), compared to $1.1 million ($0.03 per share) in Q2 2017. Q2 2018 Net income attributable to the Company was increased by $1.4 million ($0.04 per share) as a result of adopting ASC 606. Q2 2017 results included a pre-tax charge of $15.8 million ($0.31 per share after tax) related to revisions in the estimated profitability of two contracts in the Albany Engineered Composites segment.
• Net income attributable to the Company, excluding adjustments (a non-GAAP measure), was $0.82 per share, compared to $0.16 per share in Q2 2017, which included the $0.31 per share charge noted above (see Table 20).
• Adjusted EBITDA (a non-GAAP measure) was $61.9 million, compared to $30.6 million in Q2 2017, which included the $15.8 million charge noted above (see Tables 10 and 11).

ROCHESTER, N.H.--(BUSINESS WIRE)--August 6, 2018--Albany International Corp. (NYSE:AIN) reported that Q2 2018 Net income attributable to the Company was $30.4 million, including a net benefit of $4.2 million from income tax adjustments. Net income attributable to the Company was increased by $1.4 million as a result of adopting ASC 606. Q2 2017 Net income attributable to the Company was $1.1 million, including a net charge of $0.8 million from income tax adjustments.

Q2 2018 Income before income taxes was $37.3 million, including $2.6 million of restructuring charges and $2.4 million of gains from foreign currency revaluation. Q2 2017 Income before income taxes was $3.0 million, including restructuring charges of $2.0 million and losses of $3.5 million from foreign currency revaluation. Q2 2017 Income before income taxes also included a $15.8 million charge to Cost of goods sold related to revisions in the estimated profitability of two contracts in the Albany Engineered Composites segment.

Effective January 1, 2018, the Company adopted the provisions of ASC 606, Revenue from Contracts with Customers, using the modified retrospective method for transition. Under this transition method, periods prior to 2018 are not restated. Table 1 summarizes the effect on various operational metrics that resulted from the adoption of the new standard:

Table 2 summarizes Net sales and the effect of changes in currency translation rates:

Table 3 summarizes Q2 Net sales excluding the impact of ASC 606 and currency translation effects:

In Machine Clothing, when excluding the impact of ASC 606 and currency translation effects, Net sales increased 8.2% compared to Q2 2017. The increase was principally due to global growth in sales for the packaging and tissue grades, more than offsetting a continuing but small decline in publication grade sales.

AEC Net sales grew 35.7% compared to Q2 2017, when excluding the impact of ASC 606 and currency translation effects, primarily driven by growth in the LEAP, Boeing 787, F-35 and CH-53K programs.

Table 4 summarizes Gross profit by segment:

Second-quarter MC Gross profit as a percentage of sales improved to 48.9% as a result of higher sales and strong capacity utilization. AEC’s negative gross profit in Q2 2017 was principally due to the $15.8 million charge related to revisions in the estimated profitability of two contracts, as described above. The additional improvement in AEC Gross profit as a percentage of sales was driven by higher sales and improved labor productivity.

Table 5 summarizes selling, technical, general and research (STG&R) expenses by segment:

Gains and losses from the revaluation of nonfunctional-currency assets and liabilities (primarily arising in the Machine Clothing segment) decreased total second-quarter STG&R expenses by $2.4 million in 2018, and increased STG&R expenses by $1.6 million in 2017.

Table 6 summarizes second-quarter expenses associated with internally funded research and development by segment:

Table 7 summarizes second-quarter operating income/(loss) by segment:

Table 8 presents the effect on Operating income from restructuring and currency revaluation:

Restructuring charges for Q2 2018 included ongoing costs related to the closure of the Machine Clothing facility in Sélestat, France. The Company continues to assess whether property, plant and equipment in that location will be transferred to other facilities, or if their value can be recovered through a sale. Depending on the outcome of these assessments, additional restructuring charges could be recorded in future periods.

Q2 2018 Other income/expense, net, was expense of $0.7 million. Gains and losses related to the revaluation of nonfunctional-currency balances had a negligible impact. Q2 2017 Other income/expense, net, was expense of $2.6 million, including losses related to the revaluation of nonfunctional-currency balances of $1.9 million.

Table 9 summarizes currency revaluation effects on certain financial metrics:

The Company’s income tax rate based on income from continuing operations was 30.1% for Q2 2018, compared to 32.8% for Q2 2017. Discrete tax items and the effect of a change in the estimated income tax rate decreased income tax expense by $4.2 million in Q2 2018. Q2 2018 discrete tax items included a reduction to income tax expense of $5.0 million due to the reversal of a tax valuation allowance in Europe. Discrete tax items and the effect of a change in the estimated income tax rate increased income tax expense by $0.8 million in Q2 2017.

Tables 10 and 11 provide a reconciliation of Operating income and Net income to EBITDA and Adjusted EBITDA:

Payments for capital expenditures were $23.4 million in Q2 2018, compared to $21.7 million in Q2 2017. Depreciation and amortization was $19.7 million in Q2 2018, compared to $17.8 million in Q2 2017.

CFO Comments

CFO and Treasurer John Cozzolino said, “Second-quarter cash flow was slightly negative as cash generated by the Company’s strong operating results was utilized to fund the continued growth in AEC. Overall, total debt increased about $4 million to $525 million as of the end of the quarter and cash balances increased $3 million to $155 million. The combined effect of those two changes resulted in a $1 million increase in net debt (total debt less cash, see Table 22) to a balance of $370 million as of the end of the quarter. The Company’s leverage ratio, as defined in our revolving credit facility, was 2.23 at the end of Q2, as compared to 2.55 at the end of Q1, well below our current limit of 3.75.

“Capital expenditures during the quarter were about $23 million, as the Company continues to invest in equipment to support multiple ramp-ups in AEC. We continue to expect capital expenditures to range from $20 million to $25 million per quarter through the second half of the year.

“The Company’s income tax rate based on income from continuing operations was 30.1% in Q2 compared to 32.5% in Q1. The tax rate declined from Q1 due to a favorable shift in the estimated mix of pre-tax income in the countries in which the Company does business. Cash paid for income taxes was about $6 million in Q2 and $14 million through the first half of the year. We estimate cash taxes for the full year 2018 to range from $22 million to $25 million.”

CEO Comments

CEO Olivier Jarrault commented, “Q2 2018 was a very good quarter for Albany International with strong performance across both businesses. Total Company Net sales increased 19%, or 17% excluding the impact of ASC 606 and currency translation effects. Compared to Q2 2017, which included a $15.8 million pre-tax charge for revisions in AEC contract estimates, Net income and Adjusted EBITDA both increased sharply. Net income increased to $30 million while Adjusted EBITDA grew to $62 million due to higher sales and improved productivity in both MC and AEC.

“MC sales in the second quarter, excluding the impact of ASC 606 and currency translation effects, increased 8% compared to last year. The increase was principally due to global growth in sales for the packaging and tissue grades, more than offsetting a continuing but small decline in publication grade sales. A substantial amount of the sales growth was driven by North America, where sales increased across all paper grades.

“MC gross margin was strong during the quarter, rising to 48.9%, a nice improvement compared to 48.3% in Q2 last year. The increase was principally due to higher sales and strong capacity utilization. Operating income and Adjusted EBITDA both increased significantly compared to Q2 2017, with Adjusted EBITDA improving to $58 million in the quarter.

“The strong performance in MC over the first half of the year places the business on track to exceed the high end of our expected full-year Adjusted EBITDA range of $180 million to $195 million. Assuming no significant changes in global economic conditions or currency rates, we currently anticipate Adjusted EBITDA in Q3 and Q4 to be in the range of $47 million to $51 million per quarter.

“Q2 was another strong quarter for AEC with significant growth in Net sales, Operating income and Adjusted EBITDA compared to Q2 2017. Net sales, excluding the impact of ASC 606 and currency translation effects, increased 36%, while profitability continued to show improvement over last year.

“The increase in sales was primarily driven by the LEAP program. Sales of fan cases, fan blades and spacers for LEAP engines, which represented about 49% of AEC Q2 2018 sales, grew 49% compared to Q2 2017, reflecting the unprecedented steep ramp up of this jet engine program. Higher sales of Boeing 787 fuselage frames, as well as F-35 and CH-53K components, also contributed to the growth in sales.

“AEC operating income improved to $4.1 million in the current quarter, compared to a loss in Q2 2017 which included the charge for contract revisions. Adjusted EBITDA also showed good improvement as it increased to $15.1 million in the quarter, or 16.2% of Net sales, as a result of volume increases and productivity improvement. Excluding the impact of the Q2 2017 charge for contract revisions, Q2 2018 Adjusted EBITDA more than doubled compared to last year.

“In R&D, our new product development activities – which focus on existing, derivative and new technologies – and our process improvement projects – which aim to optimize our operational performance across AEC – continued to progress well during the quarter. Our execution to date on our major existing contracts, along with anticipated new contract wins, continue to provide the potential for AEC to reach annual sales of $475 million to $550 million in 2020. The potential for AEC beyond 2020 will be based not only on executing on the continued ramp up of existing programs on which we are already well established, but also on increasing share or acquiring first-time content on ramping programs, while at the same time winning new contracts on future commercial and defense airframe and engine platforms.

“The LEAP engine continues to be the preferred choice for single-aisle aircraft, as evidenced at the Farnborough Air Show where new orders and commitments in excess of 800 LEAP and CFM56 engines were announced. This strengthens the already strong LEAP engine order backlog, which represents several years of production. It has also been reported that at least one-third of the A320neo-family aircraft in the Airbus backlog do not yet have engines selected, providing a deep reserve of additional potential orders.

“We expect AEC to continue to perform well over the second half of the year. For the full year 2018, we expect the increase in Net sales to end up closer to the upper end of the 20% to 30% range we discussed last quarter; and while profitability could fluctuate somewhat over the second half, full-year Adjusted EBITDA as a percentage of net sales should show strong incremental improvement compared to 2017. Beyond 2018, we remain on track toward our goal of 18% to 20% Adjusted EBITDA as a percentage of sales in 2020.

“So in summary, this was a very good quarter for the Company, with outstanding financial performance in MC and solid sales growth with good profitability in AEC. With the strong year-to-date results and our expectation of good performance over the second half of the year, our financial outlook for both businesses for the full year 2018 is for improvement compared to 2017, at levels in line with or better than previously discussed expectations.”

About Albany International Corp.

Albany International is a global advanced textiles and materials processing company, with two core businesses. Machine Clothing is the world’s leading producer of custom-designed fabrics and belts essential to production in the paper, nonwovens, and other process industries. Albany Engineered Composites is a rapidly growing supplier of highly engineered composite parts for the aerospace industry. Albany International is headquartered in Rochester, New Hampshire, operates 22 plants in 10 countries, employs 4,400 people worldwide, and is listed on the New York Stock Exchange (Symbol AIN). Additional information about the Company and its products and services can be found at www.albint.com.

This release contains certain non-GAAP metrics, including: net sales, and percent change in net sales, excluding the impact of ASC 606 and/or currency translation effects (for each segment and the Company as a whole); EBITDA and Adjusted EBITDA (for each segment and the Company as a whole, represented in dollars or as a percentage of net sales); net debt; and net income per share attributable to the Company, excluding adjustments. Such items are provided because management believes that, when reconciled from the GAAP items to which they relate, they provide additional useful information to investors regarding the Company’s operational performance.

Presenting sales and increases or decreases in sales, after currency effects and/or ASC 606 impact are excluded, can give management and investors insight into underlying sales trends. EBITDA, or net income with interest, taxes, depreciation, and amortization added back, is a common indicator of financial performance used, among other things, to analyze and compare core profitability between companies and industries because it eliminates effects due to differences in financing, asset bases and taxes. An understanding of the impact in a particular quarter of specific restructuring costs, currency revaluation, inventory write-offs associated with discontinued businesses, or other gains and losses, on net income (absolute as well as on a per-share basis), operating income or EBITDA can give management and investors additional insight into core financial performance, especially when compared to quarters in which such items had a greater or lesser effect, or no effect. Restructuring expenses in the MC segment, while frequent in recent years, are reflective of significant reductions in manufacturing capacity and associated headcount in response to shifting markets, and not of the profitability of the business going forward as restructured. Net debt is, in the opinion of the Company, helpful to investors wishing to understand what the Company’s debt position would be if all available cash were applied to pay down indebtedness. EBITDA, Adjusted EBITDA and net income per share attributable to the Company, excluding adjustments, are performance measures that relate to the Company’s continuing operations.

Net sales, or percent changes in net sales, excluding currency rate effects, are calculated by converting amounts reported in local currencies into U.S. dollars at the exchange rate of a prior period. The impact of ASC 606 is determined by calculating what GAAP net sales would have been under the prior ASC 605 standard, and comparing that amount to the amount reported under the new ASC 606 standard. These amounts are then compared to the U.S. dollar amount as reported in the current period. The Company calculates EBITDA by removing the following from Net income: Interest expense net, Income tax expense, Depreciation and amortization. Adjusted EBITDA is calculated by: adding to EBITDA costs associated with restructuring, and inventory write-offs associated with discontinued businesses; adding (or subtracting) revaluation losses (or gains); subtracting (or adding) gains (or losses) from the sale of buildings or investments; subtracting insurance recovery gains in excess of previously recorded losses; and subtracting (or adding) Income (or loss) attributable to the non-controlling interest in Albany Safran Composites (ASC). Adjusted EBITDA may also be presented as a percentage of net sales by dividing it by net sales. Net income per share attributable to the Company, excluding adjustments, is calculated by adding to (or subtracting from) net income attributable to the Company per share, on an after-tax basis: restructuring charges; inventory write-offs associated with discontinued businesses; discrete tax charges (or gains) and the effect of changes in the income tax rate; foreign currency revaluation losses (or gains); acquisition expenses; and losses (or gains) from the sale of investments.

EBITDA, Adjusted EBITDA, and net income per share attributable to the Company, excluding adjustments, as defined by the Company, may not be similar to similarly named measures of other companies. Such measures are not considered measurements under GAAP, and should be considered in addition to, but not as substitutes for, the information contained in the Company’s statements of income.

The Company discloses certain income and expense items on a per-share basis. The Company believes that such disclosures provide important insight into underlying quarterly earnings and are financial performance metrics commonly used by investors. The Company calculates the quarterly per-share amount for items included in continuing operations by using the income tax rate based on income from continuing operations and the weighted-average number of shares outstanding for each period. Year-to-date earnings per-share effects are determined by adding the amounts calculated at each reporting period.

Table 12 summarizes Net sales and the effect of changes in currency translation rates:

Table 13 summarizes year-to-date Net sales excluding the impact of ASC 606 and currency translation effects:

Tables 14 and 15 provide a reconciliation of Operating income and Net income to EBITDA and Adjusted EBITDA:

Tables 16, 17, 18 and 19 contain per share effects of certain income and expense items:

Table 20 contains the calculation of Net income per share attributable to the Company, excluding adjustments:

Table 21 contains the calculation of AEC Adjusted EBITDA as a percentage of sales:

Table 22 contains the calculation of net debt:

Table 23 contains the reconciliation of MC 2018 projected Adjusted EBITDA to MC 2018 projected net income:

This press release may contain statements, estimates, or projections that constitute “forward-looking statements” as defined under U.S. federal securities laws. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will,” “should,” “look for,” and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties (including, without limitation, those set forth in the Company’s most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q) that could cause actual results to differ materially from the Company’s historical experience and our present expectations or projections.

Forward-looking statements in this release or in the webcast include, without limitation, statements about macroeconomic and paper-industry trends and conditions during 2018 and in future years; expectations in 2018 and in future periods of sales, EBITDA, Adjusted EBITDA (both in dollars and as a percentage of net sales), income, gross profit, gross margin, cash flows and other financial items in each of the Company’s businesses, and for the Company as a whole; the timing and impact of production and development programs in the Company’s AEC business segment and the sales growth potential of key AEC programs, as well as AEC as a whole; the amount and timing of capital expenditures, future tax rates and cash paid for taxes, depreciation and amortization; future debt and net debt levels and debt covenant ratios; the impact of the new revenue recognition standard on financial results for each business segment and for the Company as a whole; the impact of the U.S. tax legislation passed in Q4 2017; the timing and impact of the restructuring in France; and changes in currency rates and their impact on future revaluation gains and losses. Furthermore, a change in any one or more of the foregoing factors could have a material effect on the Company’s financial results in any period. Such statements are based on current expectations, and the Company undertakes no obligation to publicly update or revise any forward-looking statements.

Statements expressing management’s assessments of the growth potential of its businesses, or referring to earlier assessments of such potential, are not intended as forecasts of actual future growth, and should not be relied on as such. While management believes such assessments to have a reasonable basis, such assessments are, by their nature, inherently uncertain. This release and earlier releases set forth a number of assumptions regarding these assessments, including historical results, independent forecasts regarding the markets in which these businesses operate, and the timing and magnitude of orders for our customers’ products.

Historical growth rates are no guarantee of future growth, and such independent forecasts and assumptions could prove materially incorrect in some cases.

CONTACT:
Albany International Corp.
Investors
John Cozzolino, 518-445-2281
john.cozzolino@albint.com
or
Media
Heather Kralik, 801-505-7001
heather.kralik@albint.com