Business
Allient Reports Second Quarter 2024 Results and Annualized Savings from Simplify to Accelerate NOW Actions
Second quarter revenue was $136.0 million with a gross margin of 29.9% and net income of $1.2 million Orders of $137.4 million resulted in a book-to-bill
About this update from Allient Inc.
[{"type":"text","content":"\n\nSecond quarter revenue was $136.0 million with a gross margin of 29.9% and net income of $1.2 million\n\n\n\nOrders of $137.4 million resulted in a book-to-bill ratio of 1.0x and a backlog of $259.0 million\n\n\n\nGenerated $17.4 million of cash from operations year-to-date\n\n\n\nSimplify to Accelerate NOW efforts identified $5 million in annualized cost reductions that were implemented in the second quarter\n\n\n\nAdditional cost reductions expected to be implemented in the second half of 2024 are expected to result in an additional $5 million in annualized savings\n\n\n\n BUFFALO, N.Y.--(BUSINESS WIRE)--\nAllient Inc. (Nasdaq: ALNT) (“Allient” or the “Company”), a global designer and manufacturer of precision and specialty Motion, Controls and Power products and solutions for targeted industries and applications, today reported financial results for its second quarter ended June 30, 2024. Results include the acquisitions of Sierramotion Inc. in September 2023 and SNC Manufacturing in January 2024. The Company also announced that it has advanced its Simplify to Accelerate NOW plans to realign its manufacturing footprint and streamline the organization to enhance operational efficiency and improve earnings power.\n\n\nDick Warzala, Chairman and CEO, commented, “Despite strong efforts from our team, we saw a significant demand shift during the month of June, with a notable decline in the Industrial market related to automation and the recreational industry combined with lesser declines in other served markets. Lower than anticipated revenue combined with inventory reserves related to a customer bankruptcy and current gross margin dilution as expected from our most recent acquisition had a measurable impact on earnings in the second quarter.\n\n\n“Further, the market conditions we have seen are expected to persist through the second half of 2024 resulting in an annualized revenue run rate level below $500 million over the next several quarters. The run rate reduction is largely due to significant inventory rebalancing at some of our larger customers surfacing as the supply chain has returned to more normal conditions. While the full year results will exceed the projected third and fourth quarter annual run rate, we do expect customer inventory adjustments will be substantially complete in early 2025 with a return to normal ru...