Aspen Aerogels revises 2015 outlook after CO2 supply disrupted

ASPEN AEROGELS Inc. said it has been forced to idle some of its manufacturing equipment through the end of the month and also adjusted its full-year outlook after its main CO2 gas supplier said it is curtailing its supply to the energy technology company.
ASPEN AEROGELS Inc. said it has been forced to idle some of its manufacturing equipment through the end of the month and also adjusted its full-year outlook after its main CO2 gas supplier said it is curtailing its supply to the energy technology company.

NORTHBOROUGH, Mass. – Aspen Aerogels Inc. has adjusted its full-year outlook after it was forced to idle some manufacturing equipment through the end of the month because its primary CO2 gas supplier curtailed its supply to the energy technology company.

Aspen Aerogels, in a press release issued this week, said the supplier expects to resume shipment of the company’s CO2 requirement in full by Oct. 1.

Aspen said this “temporary feedstock issue” is affecting the northeastern United States.

“While we have managed to identify alternative sources for approximately 40 percent of our CO2 requirements, the temporary shortfall in CO2 supplies will force Aspen Aerogels to intermittently idle a portion of its manufacturing equipment through the end of the month,” Don Young, president and CEO of Aspen Aerogels, said in a statement.

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“We plan to adjust our product mix during the remainder of the month to optimize production from our East Providence, R.I., manufacturing facility, but will not be able to make up for the lost production volume due to capacity constraints. Accordingly, we expect the CO2 supply shortfall to adversely impact full-year 2015 total revenue.” He said it also will affect earnings per share.
Aspen Aerogels said revenue is now expected to range between $118 million and $120 million, narrowing the previous guidance range of $118 million to $122 million.

A loss between 26 cents and 30 cents per share is expected, compared with a loss between 20 cents to 25 cents previously announced.

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