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Air Industries reports wider net loss for 2017; forecasts higher revenue for 2018

Revenue was $49.9 million in 2017 versus $51.3 million in the previous year.

Luciano Melluzzo, CEO of Air Industries.

Luciano Melluzzo, CEO of Air Industries.  Photo Credit: Air Industries Group

Hauppauge defense contractor Air Industries Group reported a wider net loss in 2017 but forecast higher revenue in 2018.

The company, which makes landing gear for military jets, posted a net loss of $22.6 million in 2017 compared to a net loss of $15.6 million in 2016.

Revenue was $49.9 million in 2017 versus $51.3 million in the previous year.

The company, which issued preliminary financial data on April 3, filed a report on Wednesday and an amended report after the market close Thursday.

Shares of Air Industries fell 5.5 percent Friday to close at $1.54.

The company said it expects 2018 revenue will exceed 2017 levels, but it did not provide a specific target.

The company, which has been coping with liquidity issues, set a "goal" to halt its losses by the fourth quarter of 2018.

Since 2016 Air Industries has sold more than $29.9 million in debt and equity securities to fund its business, and as of Dec. 31 the company was out of compliance with the terms of its agreements with lender PNC Bank. 

Still, the company said it had reduced "bank and other notes payable" to $26.8 million as of the end of 2017, a $10.1 million reduction from the previous year.

In March the company announced an agreement to sell its Hauppauge-based Welding Metallurgy Inc. unit to Edgewood-based CPI Aerostructures Inc. for $9 million. Debt will be cut by $4 million when that sale closes, the company said.

This month, Air Industries board chairman Michael Taglich and director Robert Taglich provided the company with a total of $1.2 million for a private placement of securities on terms to be determined.

In November, the company appointed Luciano "Lou" Melluzzo chief executive, replacing acting CEO Pete Rettaliata.

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