Aerospace manufacturer Air Industries Group has sold its AMK Technical Services subsidiary for up to $6 million, the company announced Monday.
The Hauppauge-based company also said its 2016 revenue declined, as it had warned, but new orders were up strongly. On Tuesday its shares fell 7 cents to $3.50 from Monday’s closing price.
Air Industries sold AMK, based in South Windsor, Connecticut, to Meyer Tool of Cincinnati, Ohio. The price was $4.5 million plus additional quarterly payments based on AMK’s net revenue, not to exceed $1.5 million.
AMK’s sale price was about equal to the price Air Industries paid for the provider of welding services in October 2014, said Michael Recca, Air Industries’ chief financial officer.
In June 2016, Air Industries announced a co-location agreement under which AMK would operate in a 10,000-square-foot section of a manufacturing plant of Meyer Tool in Kalisz, Poland.
Eventually, Meyer Tool approached Air Industries about buying the unit, Recca said.
“While the operations and capabilities of AMK are complementary, they are not identical to our core business of producing complex machined aerospace hardware,” Air Industries president and chief executive Dan Godin said in a statement. “The divestment of AMK allows Air Industries to focus management and other resources on its core business.”
Proceeds of the sale will go toward reducing debt and other uses, the military contractor said.
Air Industries announced that revenue for the year ended Dec. 31 will be about $66.8 million, a decline of roughly $14 million from 2015, because of delays in developing new programs and products, and what Godin called “a few operational execution issues.”
“As we have previously announced, sales results for 2016 were disappointing,” he said.
Godin said, however, bookings of new business in 2016 increased by $9 million, or 13 percent, to about $80 million.
Air Industries employs about 400 people and supplies aerostructure assemblies, air-to-air refueling systems and landing gear for aircraft including the F-16 Fighting Falcon, the carrier-based F-18 Hornet, the F-15 Eagle and the E2D Hawkeye.