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<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0in"><b><i>1. Significant Accounting Policies</i></b></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in"><b><i>Basis of Presentation</i></b></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">In the opinion of management, the
accompanying unaudited consolidated financial statements contain all adjustments necessary for a fair presentation of results for
such periods. Albany International Corp. (Albany, the Registrant, the Company, we, us, or our) consolidates the financial results
of its subsidiaries for all periods presented. The results for any interim period are not necessarily indicative of results for
the full year.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The preparation of financial statements
in accordance with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and
assumptions that affect the amounts reported in Albany International Corp.’s Consolidated Financial Statements and accompanying
Notes. Actual results could differ materially from those estimates.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The information included in this
Quarterly Report on Form 10-Q should be read in conjunction with “Risk Factors,” “Legal Proceedings,” “Management’s
Discussion and Analysis of Financial Condition and Results of Operation,” “Quantitative and Qualitative Disclosures
about Market Risk” and the Consolidated Financial Statements and Notes thereto included in Items 1A, 3, 7, 7A and 8, respectively,
of the Albany International Corp. Annual Report on Form 10-K for the year ended December 31, 2017.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">Effective January 1, 2018, we adopted
the provisions of ASC 606, <i>Revenue from contracts with customers</i>, using the modified retrospective method for transition
as discussed in Note 2, Revenue Recognition. Accounting policies have been applied consistently to periods presented, except for
the application of ASC 606, as further described in Note 2.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 12pt 0in; text-indent: 0in"><b><i>4. Pensions and Other Postretirement
Benefit Plans </i></b></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 8pt; margin-left: 0; text-indent: 0"><i>Pension
Plans</i></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 12pt 0in; text-indent: 0.5in">The Company has defined benefit
pension plans covering certain U.S. and non-U.S. employees. The U.S. qualified defined benefit pension plan has been closed to
new participants since October 1998 and, as of February 2009, benefits accrued under this plan were frozen. As a result of the
freeze, employees covered by the pension plan will receive, at retirement, benefits already accrued through February 2009 but no
new benefits accrue after that date. Benefit accruals under the U.S. Supplemental Executive Retirement Plan ("SERP")
were similarly frozen. The eligibility, benefit formulas, and contribution requirements for plans outside of the U.S. vary by location.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 12pt; margin-left: 0; text-indent: 0"><i>Other
Postretirement Benefits</i></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The Company also provides certain
postretirement benefits to retired employees in the U.S. and Canada. The Company accrues the cost of providing postretirement benefits
during the active service period of the employees. The Company currently funds the plans as claims are paid.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The composition of the net periodic
benefit plan cost for the six months ended June 30, 2018 and 2017, was as follows:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in"></p>
<table border="0" cellpadding="0" cellspacing="0" align="center" style="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="font-size: 9pt; width: 36%"> </td>
<td style="font-size: 9pt; width: 11%"> </td>
<td style="font-weight: bold; width: 9%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 11%"> </td>
<td style="font-weight: bold; width: 9%"> </td></tr>
<tr>
<td style="font-weight: bold; vertical-align: bottom; border-top: Black 0.5pt solid"> </td>
<td colspan="2" style="font-weight: bold; vertical-align: middle; border-top: Black 0.5pt solid; text-align: center">Pension plans</td>
<td colspan="2" style="font-weight: bold; vertical-align: bottom; border-top: Black 0.5pt solid; text-align: center">Other postretirement benefits</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: justify">(in thousands)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2018</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2017</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2018</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2017</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Components of net periodic benefit cost:</td>
<td style="font-weight: bold"> </td>
<td> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Service cost</td>
<td style="font-weight: bold; text-align: right">$1,391</td>
<td style="text-align: right">$1,307</td>
<td style="font-weight: bold; text-align: right">$116</td>
<td style="text-align: right">$122</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Interest cost</td>
<td style="font-weight: bold; text-align: right">          3,621</td>
<td style="text-align: right">        3,671</td>
<td style="font-weight: bold; text-align: right">          1,013</td>
<td style="text-align: right">        1,107</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Expected return on assets</td>
<td style="font-weight: bold; text-align: right">         (4,470)</td>
<td style="text-align: right">       (4,003)</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right">               -</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Curtailment gain</td>
<td style="font-weight: bold; text-align: right">            (518)</td>
<td style="text-align: right">               -</td>
<td style="font-weight: bold; text-align: right">                 -</td>
<td style="text-align: right">               -</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Amortization of prior service cost/(credit)</td>
<td style="font-weight: bold; text-align: right">              17</td>
<td style="text-align: right">             18</td>
<td style="font-weight: bold; text-align: right">         (2,244)</td>
<td style="text-align: right">       (2,244)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Amortization of net actuarial loss</td>
<td style="font-weight: bold; text-align: right">          1,110</td>
<td style="text-align: right">        1,295</td>
<td style="font-weight: bold; text-align: right">          1,478</td>
<td style="text-align: right">        1,405</td></tr>
<tr style="vertical-align: bottom">
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: justify">Net periodic benefit cost</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$1,151</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$2,288</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$363</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$390</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in"></p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt 31.5pt; text-align: justify; text-indent: 0.5in"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">In 2018, the Company adopted the
provisions of ASU 2017-07, “<i>Compensation – Retirement Benefits: improving the presentation of net periodic pension
cost and net periodic postretirement benefit cost</i>”. This accounting update requires that service cost for defined benefit
pension and postretirement plans be reported in the same line item or items as other compensation costs arising from services rendered
by the pertinent employees during the period. Additionally, the other components of net periodic benefit cost are required to be
presented in the income statement separately from the service cost component and outside a subtotal of income from operations.
The Company elected to report the components of net periodic benefit cost other than the service component in the line item, Other
expense, net in the Consolidated Statements of Income.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in"><font style="font-family: Arial, Helvetica, Sans-Serif">We
restated 2017 expenses using the application of a practical expedient, which permits the usage of amounts disclosed in the prior
year Pension and Other Postretirement benefit plans footnote as the estimation basis for applying the retrospective presentation
requirements. The tables below show the 2017 amounts reclassified by segment and financial statement line item that resulted from
adopting this update:</font><font style="font-family: Georgia, Times, Serif; color: #3C3C3D"> </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 0.25in; text-indent: 0.5in"><b>Effect by segment operating expenses:</b></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 0.25in; text-indent: 0.5in"></p>
<table border="0" cellpadding="0" cellspacing="0" align="center" style="width: 87%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="font-weight: bold; width: 21%"> </td>
<td style="width: 27%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid">(in thousands) </td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid">Increase/(decrease) in expense for the six months ended June 30, 2017</td></tr>
<tr style="vertical-align: bottom">
<td>Machine Clothing</td>
<td style="text-align: right">($9)</td></tr>
<tr style="vertical-align: bottom">
<td>Albany Engineered Composites</td>
<td style="text-align: right">                                                          -   </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid">Corporate expenses</td>
<td style="text-align: right">                                                    (1,240)</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid">Total operating expenses</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 1pt solid; text-align: right">($1,249)</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid">Other expense, net</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">$1,249</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 0.25in; text-indent: 0.5in"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 0.25in; text-indent: 0.5in"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in"><b>Effect by Statement of Income line
item:</b></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 0.25in; text-indent: 0.5in"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 0.25in; text-indent: 0.5in"></p>
<table border="0" cellpadding="0" cellspacing="0" align="center" style="width: 87%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 1pt solid; width: 21%"> </td>
<td style="border-bottom: Black 1pt solid; width: 27%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 0.5pt solid">(in thousands) </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid">Increase/(decrease) in expense for the six months ended June 30, 2017</td></tr>
<tr style="vertical-align: bottom">
<td>Cost of goods sold</td>
<td style="text-align: right">($247)</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid">Selling, general and administrative expenses </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">                                                    (1,002)</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid">Total operating expenses </td>
<td style="border-bottom: Black 1pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">($1,249)</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid">Other expense, net</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">$1,249</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 0.25in; text-indent: 0.5in"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0in"><b><i>5. Restructuring </i></b></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">On October 5, 2017, the Company
filed a form 8-K to announce the initiation of discussions regarding a proposal to discontinue operations at its Machine Clothing
production facility in Sélestat, France. During 2017, we incurred $1.1 million of restructuring expense associated with
this proposal but were unable to reasonably estimate the total costs for severance and other charges associated with the proposal
as there was no assurance, at that time, that approval for the proposal would be obtained. In the first quarter of 2018 the plan
was approved by the French Labor Ministry. The restructuring program was driven by the Company’s need to balance manufacturing
capacity with demand. In the first six months of 2018, we recorded restructuring expense of $8.6 million, which includes our estimate
of the severance and outplacement costs for the approximately 50 positions that will be terminated under this plan. To date, we
have recorded $9.7 million of restructuring charges related to this action. The Company continues to assess property, plant and
equipment in that location to determine if equipment will be transferred to other facilities, or if the value of the assets can
be recovered through a sale. Depending on the outcome of that assessment, additional restructuring charges could be recorded in
future periods.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">AEC restructuring charges for the
first six months of 2018 and 2017 principally relate to work force reductions in Salt Lake City, Utah and Rochester, New Hampshire.
To date, we have recorded $5.8 million of restructuring charges related to these actions.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The following table summarizes
charges reported in the Consolidated Statements of Income under “Restructuring expenses, net”:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 11.25pt 0 0 0.5in; text-indent: 0.5in"></p>
<table border="0" cellpadding="0" cellspacing="0" align="center" style="font: 10pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; border-bottom: Black 1pt solid; width: 52%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; border-bottom: Black 1pt solid; width: 13%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; border-bottom: Black 1pt solid; width: 11%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; border-bottom: Black 1pt solid; width: 12%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; border-bottom: Black 1pt solid; width: 12%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Three months ended June 30,</td>
<td colspan="2" style="font-weight: bold; text-align: center">Six months ended <br />
June 30,</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: justify">(in thousands)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2018</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2017</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2018</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2017</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Machine Clothing </td>
<td style="font-weight: bold; text-align: right">$1,800</td>
<td style="text-align: right">$805</td>
<td style="font-weight: bold; text-align: right">$10,152</td>
<td style="text-align: right">$916</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Albany Engineered Composites </td>
<td style="font-weight: bold; text-align: right">             558</td>
<td style="text-align: right">      1,231</td>
<td style="font-weight: bold; text-align: right">           779</td>
<td style="text-align: right">        3,801</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify">Corporate expenses</td>
<td style="font-weight: bold; text-align: right">             231</td>
<td style="text-align: right">           -   </td>
<td style="font-weight: bold; text-align: right">           231</td>
<td style="text-align: right">             -   </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid; text-align: justify"> <font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Total  </font></td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 1pt solid; text-align: right">$2,589</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 1pt solid; text-align: right">$2,036</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 1pt solid; text-align: right">$11,162</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 1pt solid; text-align: right">$4,717</td></tr>
</table>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0in"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 75%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 47%; border-bottom: Black 1pt solid"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 20%; border-bottom: Black 1pt solid"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 16%; border-bottom: Black 1pt solid"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 17%; border-bottom: Black 1pt solid"> </td></tr>
<tr>
<td style="font-weight: bold; vertical-align: top; text-align: left">Six months ended June 30, 2018</td>
<td style="font-weight: bold; vertical-align: top; text-align: center">Total <font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><b>restructuring costs incurred  </b></font></td>
<td style="font-weight: bold; vertical-align: top; text-align: center"> <font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><b>Termination and other costs  </b></font></td>
<td style="font-weight: bold; vertical-align: top; text-align: center">Impairment of  assets</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 1pt solid; text-align: justify">(in thousands)</td>
<td style="border-bottom: Black 1pt solid"> </td>
<td style="border-bottom: Black 1pt solid"> </td>
<td style="border-bottom: Black 1pt solid"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Machine Clothing </font></td>
<td style="text-align: right"> $10,152</td>
<td style="text-align: right"> $10,152</td>
<td style="text-align: right"> $-</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Albany Engineered Composites </td>
<td style="text-align: right">        779</td>
<td style="text-align: right">     779</td>
<td style="text-align: right">        -</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify">Corporate expenses</td>
<td style="text-align: right">        231</td>
<td style="text-align: right">     231</td>
<td style="text-align: right">        -</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Total  </font></td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right"> $11,162</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right"> $11,162</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right"> $-</td></tr>
</table>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0in"></p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0in"></p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0in"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 75%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: justify"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: justify"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: justify"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: justify"> </td>
</tr>
<tr>
<td style="white-space: nowrap; font-weight: bold; vertical-align: top; text-align: left; width: 47%">Six months ended June 30, 2017</td>
<td style="font-weight: bold; vertical-align: top; text-align: center; width: 20%">Total <font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><b>restructuring costs incurred  </b></font></td>
<td style="font-weight: bold; vertical-align: top; text-align: center; width: 16%"> <font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><b>Termination <br />
and other<br />
costs  </b></font></td>
<td style="font-weight: bold; vertical-align: top; text-align: center; width: 17%">Impairment<br />
of assets</td>
</tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: justify">(in thousands)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: justify"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: justify"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: justify"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Machine Clothing </font></td>
<td style="text-align: right"> $916</td>
<td style="text-align: right"> $916</td>
<td style="text-align: right"> $-</td>
</tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Albany Engineered Composites </td>
<td style="text-align: right">      3,801</td>
<td style="text-align: right">      3,356</td>
<td style="text-align: right">       445</td>
</tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify">Corporate expenses</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">         - </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">       - </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">         - </td>
</tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Total  </font></td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">$4,717</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">$4,272</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">$445</td>
</tr>
</table>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0in"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">We expect that approximately $8.4
million of Accrued liabilities for restructuring at June 30, 2018 will be paid within one year and approximately $0.4 million will
be paid in the following year. The table below presents the year-to-date changes in restructuring liabilities for 2018 and 2017,
all of which related to termination costs:</p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0in"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 33%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 13%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 13%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 13%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 13%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 15%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-top: Black 0.5pt solid"> </td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">December 31,</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">Restructuring</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center"> </td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">Currency</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">June 30, </td></tr>
<tr>
<td style="font-weight: bold; vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: justify">(in thousands)</td>
<td style="font-weight: bold; vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: center">2017</td>
<td style="font-weight: bold; vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: center">charges accrued</td>
<td style="font-weight: bold; vertical-align: top; border-bottom: Black 0.5pt solid; text-align: center">Payments</td>
<td style="font-weight: bold; vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: center">translation<br />
/other</td>
<td style="font-weight: bold; vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: center">2018</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify">Total termination and other costs</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">$3,326</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">$11,162</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">($5,323)</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">($378)</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right"> $8,787</td></tr>
</table>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0in"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in"><b></b></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 33%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 13%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 13%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 13%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 13%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 15%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-top: Black 0.5pt solid"> </td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">December 31,</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">Restructuring</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center"> </td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">Currency</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">June 30,</td></tr>
<tr>
<td style="font-weight: bold; vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: justify">(in thousands)</td>
<td style="font-weight: bold; vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: center">2016</td>
<td style="font-weight: bold; vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: center">charges accrued</td>
<td style="font-weight: bold; vertical-align: top; border-bottom: Black 0.5pt solid; text-align: center">Payments</td>
<td style="font-weight: bold; vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: center">translation<br />
/other</td>
<td style="font-weight: bold; vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: center">2017</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify">Total termination and other costs</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">$5,559</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">$4,272</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">($4,513)</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">$65</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right"> $5,383</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><b><i>6. Other expense, net </i></b></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0in"><b><i> </i></b></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in">The components of Other expense,
net are:</p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0in"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 90%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 46%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 14%"> </td>
<td style="font: bold 11pt Calibri, Helvetica, Sans-Serif; width: 14%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 14%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 12%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-top: Black 0.5pt solid"> </td>
<td colspan="2" style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">Three months ended<br />
June 30,</td>
<td colspan="2" style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">Six months ended<br />
June 30,</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><b>(in thousands)  </b></font></td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2018</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2017</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2018</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2017</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Currency transaction (gains)/losses</td>
<td style="font-weight: bold; text-align: right">($9)</td>
<td style="text-align: right">$1,948</td>
<td style="font-weight: bold; text-align: right">$681</td>
<td style="text-align: right">$2,049</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Bank fees </td>
<td style="font-weight: bold; text-align: right">              96</td>
<td style="text-align: right">             111</td>
<td style="font-weight: bold; text-align: right">             204</td>
<td style="text-align: right">           259</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Components of net periodic pension and postretirement cost other than service</td>
<td style="font-weight: bold; text-align: right">             259</td>
<td style="text-align: right">             627</td>
<td style="font-weight: bold; text-align: right">             525</td>
<td style="text-align: right">        1,249</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Other  </font></td>
<td style="font-weight: bold; text-align: right">             380</td>
<td style="text-align: right">            (128)</td>
<td style="font-weight: bold; text-align: right">             768</td>
<td style="text-align: right">          (173)</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Total  </font></td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$726</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$2,558</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$2,178</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$3,384</td></tr>
</table>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0in"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">In 2018, the Company adopted the
provisions of ASU 2017-07. This accounting update affected the classification of components of net periodic benefit cost, other
than service cost, to be reported separately from the service cost component and outside of operating income. The Company elected
to report other components of net periodic pension and postretirement cost in Other expense, net. The comparative consolidated
statement of income was restated as required by this update. Further detail of this accounting update is disclosed in Note 4.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0in"><b><i>7. Income Taxes</i></b></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The following
table presents components of income tax expense for the three and six months ended June 30, 2018 and 2017:<b><i> </i></b></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-align: justify; text-indent: 0in">	</p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom; background-color: white">
<td style="border-top: Black 0.5pt solid"> </td>
<td colspan="2" style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">Three months ended<br />
June 30,</td>
<td colspan="2" style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">Six months ended<br />
June 30,</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: justify; width: 58%">(in thousands)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 11%">2018</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 10%">2017</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 10%">2018</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 11%">2017</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td>Income tax based on income from continuing operations, at estimated tax rates of 30.1% and 32.8%, respectively</td>
<td style="font-weight: bold; text-align: right">$11,239</td>
<td style="text-align: right">$989</td>
<td style="font-weight: bold; text-align: right">$15,779</td>
<td style="text-align: right">$6,744</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: Black 0.5pt solid">Provision for change in estimated tax rate</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">         (359)</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">           36</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">              -</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">                -</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify">Income tax before discrete items</td>
<td style="font-weight: bold; text-align: right">      10,880</td>
<td style="text-align: right">       1,025</td>
<td style="font-weight: bold; text-align: right">     15,779</td>
<td style="text-align: right">         6,744</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify">Discrete tax expense:</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify">     Exercise of US Stock Options</td>
<td style="font-weight: bold; text-align: right">             (3)</td>
<td style="text-align: right">              -</td>
<td style="font-weight: bold; text-align: right">(126)</td>
<td style="text-align: right">            (55)</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify">     Impact of mandatory repatriation</td>
<td style="font-weight: bold; text-align: right">       (1,099)</td>
<td style="text-align: right">              -</td>
<td style="font-weight: bold; text-align: right">(1,099)</td>
<td style="text-align: right">                -</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 18px; text-align: left">Adjustments to prior period tax liabilities</td>
<td style="font-weight: bold; text-align: right">         (206)</td>
<td style="text-align: right">         189</td>
<td style="font-weight: bold; text-align: right">         (252)</td>
<td style="text-align: right">           189</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 18px; text-align: left">Provision for/resolution of tax audits and contingencies, net</td>
<td style="font-weight: bold; text-align: right">        2,443</td>
<td style="text-align: right">         599</td>
<td style="font-weight: bold; text-align: right">       2,448</td>
<td style="text-align: right">         1,451</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 18px; text-align: left">Changes in valuation allowance</td>
<td style="font-weight: bold; text-align: right">       (4,986)</td>
<td style="text-align: right">              -</td>
<td style="font-weight: bold; text-align: right">      (4,986)</td>
<td style="text-align: right">                -</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 18px; border-bottom: Black 0.5pt solid; text-align: left">Other</td>
<td style="font-weight: bold; text-align: right">              2</td>
<td style="text-align: right">          (34)</td>
<td style="font-weight: bold; text-align: right">         (124)</td>
<td style="text-align: right">                -</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: Black 0.5pt solid; text-align: justify">Total income tax expense</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$7,031</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$1,779</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$11,640</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$8,329</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-align: justify; text-indent: 0in">	</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The second
quarter estimated effective tax rate on continuing operations was 30.1 percent in 2018, compared to 32.8 percent for the same period
in 2017.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">Income tax
expense for the quarter was computed in accordance with ASC 740-270 “Income Taxes – Interim Reporting”. Under
this method, loss jurisdictions which cannot recognize a tax benefit with regard to their generated losses are excluded from the
annual effective tax rate (AETR) calculation and their taxes are recorded discretely in each quarter.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The Company’s
tax rate is affected by recurring items such as the income tax rate in the U.S. and in non-U.S. jurisdictions and the mix of income
earned in those jurisdictions, including changes in losses and income from excluded loss jurisdictions, and the impact of discrete
items in the respective quarter. Additionally, tax adjustments resulting from the 2017 Tax Cut and Jobs Act (TCJA) have affected
the Company’s 2018 AETR, including the global intangible low-taxed income (GILTI) inclusion, the foreign-derived intangible
income (FDII) deduction and the corporate U.S. tax rate reduction from 35% to 21%.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The TCJA significantly revised the
U.S. corporate income tax regime by, among other things, lowering the U.S. corporate tax rate from 35% to 21% effective January
1, 2018, while also repealing the deduction for domestic production activities, implementing a territorial tax system and imposing
a transition tax on deemed repatriated earnings of foreign subsidiaries. U.S. GAAP requires that the impact of tax legislation
be recognized in the period in which the law was enacted.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">In December 2017, the Securities
and Exchange Commission staff issued Staff Accounting Bulletin No. 118 (SAB 118), which addresses how a company recognizes provisional
amounts when a company does not have the necessary information available, prepared or analyzed (including computations) in reasonable
detail to complete its accounting for the effect of the changes in the TCJA. The measurement period ends when a company has obtained,
prepared and analyzed the information necessary to finalize its accounting, but cannot extend beyond one year. The Company elected
to apply the measurement period guidance provided in SAB 118.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">Deferred tax assets and liabilities:
At December 31, 2017, the Company re-measured certain deferred tax assets and liabilities based on the federal rate of 21%. However,
the Company is still analyzing certain aspects of the TCJA, such as IRC section 162(m), and refining its calculations which could
potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts. As such, no adjustment
has been recorded to the provisional amount previously recorded in 2017.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">Foreign tax effects: At December
31, 2017, the Company recorded a provisional federal tax charge due to the transition tax on deemed repatriation of foreign earnings.
As of June 30, 2018, the Company is still analyzing its U.S. tax attributes such as foreign earnings and profits, foreign tax paid,
and other tax components involved in foreign tax credit calculations, however, the Company has recorded a net $1.1 million reduction
to the provisional transition tax in Q2 2018. The $1.1 million adjustment is comprised of a $1.9 million federal tax benefit attributable
to adjustments discovered while analyzing the Post 1986 E&P and tax pools through 2016 and a $0.8 million state tax charge
based on interpretive guidance issued by various states during the quarter on how the deemed mandatory repatriation would be taxed
in those jurisdictions. These amounts are still considered provisional as the Company continues to analyze guidance and legislation
published by the taxing jurisdictions.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The Company has elected to
account for the global intangible low-taxed income (GILTI) as a current-period expense when incurred (the “period cost
method”). The estimated net GILTI inclusion calculated by the Company (including the gross up on the GILTI Inclusion
and the apportioned foreign tax credits applied to GILTI) was $18 million and increased the AETR by 2.3%. The Company also
calculated an estimated foreign-derived intangible income (FDII) deduction of $9 million which decreased the AETR by 2.1%.
Because of the complexity of the GILTI and FDII tax rules and the lack of legislative guidance, the Company continues to
evaluate these provisions of the TCJA and the application of ASC 740, Income Taxes. The final impact on the Company from the
TCJA’s GILTI and FDII tax legislation may differ from the estimate calculated by the Company. Such differences could be
material, due to, among other things, changes in interpretations of the TCJA, future legislative action to address questions
that arise because of the TCJA, changes in accounting standards for income taxes or related interpretations in response to
the TCJA, or any updates or changes to estimates the Company has utilized to calculate the GILTI inclusion and FDII
deduction.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The Company continues to believe
that the Base Erosion Anti-Abuse Tax (BEAT) does not apply under the Company’s current policies. Therefore no adjustments
for BEAT have been recorded.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The Company records the residual
U.S. and foreign taxes on certain amounts of foreign earnings that have been targeted for repatriation to the U.S. These amounts
are not considered to be indefinitely reinvested, and the Company accrued for the tax cost on these earnings to the extent they
cannot be repatriated in a tax-free manner. The Company has targeted for repatriation $92.9 million of current year and prior year
earnings of the Company’s foreign operations. If these earnings were distributed, the Company would be subject to foreign
withholding taxes of $2.2 million which have already been recorded.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The Company conducts business globally
and, as a result, files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. In the
normal course of business the Company is subject to examination by taxing authorities throughout the world, including major jurisdictions
such as the United States, Brazil, Canada, France, Germany, Italy, Mexico, and Switzerland. The open tax years in these jurisdictions
range from 2007 to 2018. The Company is currently under audit in non-U.S. tax jurisdictions, including but not limited to Canada
and Italy. During the second quarter of 2018, the Company recorded a charge for additional uncertain tax positions of $2.4 million
as a result of developments in ongoing tax audits.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">It is reasonably possible that
over the next twelve months the amount of unrecognized tax benefits may change within a range of a net increase of nil to a net
decrease of $0.7 million, from the reevaluation of uncertain tax positions arising in examinations, in appeals, or in the courts, or from
the closure of tax statutes of limitations.<b> </b></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">As of each reporting date, management
considers new evidence, both positive and negative, that could affect its view of the future realization of deferred tax assets.
As of June 2018, management determined that there was sufficient positive evidence to conclude that it is more likely than not
that deferred tax assets in Germany are realizable. Therefore, the Company reversed the previously recorded valuation allowance
in the second quarter of 2018 which resulted in a discrete tax benefit of $5.0 million. <b> </b></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">In October 2016, an accounting update,
ASU 2016-16 was issued which modifies the recognition of income tax effects on intercompany transfers of assets, other than inventory.
The Company adopted this update effective January 1, 2018, which resulted in a decrease of $0.5 million to deferred taxes liabilities,
with an offsetting increase to retained earnings.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0in"><b><i>8. Earnings Per Share </i></b></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The amounts used in computing earnings
per share and the weighted average number of shares of potentially dilutive securities are as follows:</p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt; text-indent: 0.5in"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 56%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 11%"> </td>
<td style="font-weight: bold; width: 11%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 11%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 11%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-top: Black 0.5pt solid"> </td>
<td colspan="2" style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">Three months ended<br />
June 30,</td>
<td colspan="2" style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">Six months ended<br />
June 30,</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: left">(in thousands, except market price and earnings per share)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2018</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2017</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2018</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2017</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="font-weight: bold"> </td>
<td style="font-size: 8pt; font-weight: bold"> </td>
<td style="font-weight: bold"> </td>
<td style="font-size: 8pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify">Net income attributable to the Company</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">$30,365</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">$1,117</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">$40,610</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">$11,956</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="font-weight: bold"> </td>
<td> </td>
<td style="font-weight: bold"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: justify">Weighted average number of shares:</td>
<td style="font-weight: bold"> </td>
<td> </td>
<td style="font-weight: bold"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">Weighted average number of shares used in</td>
<td style="font-weight: bold"> </td>
<td> </td>
<td style="font-weight: bold"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">calculating basic net income per share</td>
<td style="font-weight: bold; text-align: right">      32,257</td>
<td style="text-align: right">      32,166</td>
<td style="font-weight: bold; text-align: right">      32,239</td>
<td style="text-align: right">      32,147</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: justify">Effect of dilutive stock-based compensation plans:</td>
<td style="font-weight: bold"> </td>
<td> </td>
<td style="font-weight: bold"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; border-bottom: Black 0.5pt solid; text-align: left">Stock options</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">             16</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">             34</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">             16</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">             35</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td>Weighted average number of shares used in</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid">calculating diluted net income per share</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">      32,273</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">      32,200</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">      32,255</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">      32,182</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Average market price of common stock used</td>
<td style="font-weight: bold"> </td>
<td> </td>
<td style="font-weight: bold"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify">for calculation of dilutive shares</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">$61.86</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">$48.44</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">$62.83</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">$47.47</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="font-weight: bold"> </td>
<td> </td>
<td style="font-weight: bold"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: left">Net income per share:</td>
<td style="font-weight: bold"> </td>
<td> </td>
<td style="font-weight: bold"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">Basic</td>
<td style="font-weight: bold; text-align: right">$0.94</td>
<td style="text-align: right">$0.03</td>
<td style="font-weight: bold; text-align: right">$1.26</td>
<td style="text-align: right">$0.37</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; border-bottom: Black 0.5pt solid; text-align: left">Diluted</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">$0.94</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">$0.03</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">$1.26</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">$0.37</td></tr>
</table>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt; text-indent: 0.5in"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0in"><b><i>10. Accumulated Other Comprehensive
Income (AOCI) </i></b></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The table below presents changes
in the components of AOCI for the period December 31, 2017 to June 30, 2018:</p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt; text-indent: 0.5in"></p>
<table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 44%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 14%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 15%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 11%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 16%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: justify">(in thousands)</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">Translation adjustments</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">Pension and postretirement liability adjustments</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">Derivative valuation adjustment</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">Total Other Comprehensive Income</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: justify; border-top-color: Black; border-top-width: 0.5pt">December 31, 2017</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">($87,318)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">($50,536)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">$1,953</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">($135,901)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Other comprehensive income/(loss) before reclassifications</td>
<td style="text-align: right">           (15,570)</td>
<td style="text-align: right">              2,224</td>
<td style="text-align: right">         6,024</td>
<td style="text-align: right">               (7,322)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Pension/postretirement curtailment gain, net of tax</td>
<td style="text-align: right"> </td>
<td style="text-align: right">                (363)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">                  (363)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Interest expense related to swaps reclassified to the Consolidated Statements of Income, net of tax</td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right">           178</td>
<td style="text-align: right">                   178</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: left">Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income, net of tax</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">                 253</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">                   253</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: left; border-top-color: Black; border-top-width: 0.5pt">Net current period other comprehensive income</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">           (15,570)</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">              2,114</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">         6,202</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">               (7,254)</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: justify">June 30, 2018</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">($102,888)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">($48,422)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">$8,155</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">($143,155)</td></tr>
</table>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt; text-indent: 0.5in"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The table below presents changes
in the components of AOCI for the period December 31, 2016 to June 30, 2017:</p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt; text-indent: 0in"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 44%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 14%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 15%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 11%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 16%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: justify">(in thousands)</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">Translation adjustments</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">Pension and postretirement liability adjustments</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">Derivative valuation adjustment</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">Total Other Comprehensive Income</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: justify; border-top-color: Black; border-top-width: 0.5pt">December 31, 2016</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">($133,298)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">($51,719)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">$828</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">($184,189)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Other comprehensive income/(loss) before reclassifications</td>
<td style="text-align: right">            28,453</td>
<td style="text-align: right">             (1,079)</td>
<td style="text-align: right">          (619)</td>
<td style="text-align: right">              26,755</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Interest expense related to swaps reclassified to the Consolidated Statements of Income, net of tax</td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right">           585</td>
<td style="text-align: right">                   585</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: left">Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income, net of tax</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">                 332</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">                   332</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: left; border-top-color: Black; border-top-width: 0.5pt">Net current period other comprehensive income</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">            28,453</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">                (747)</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">            (34)</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">              27,672</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: justify">June 30, 2017</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">($104,845)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">($52,466)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">$794</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">($156,517)</td></tr>
</table>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt; text-indent: 0in"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The table below presents the expense/(income)
amounts reclassified, and the line items of the Consolidated Statements of Income that were affected for the periods ended June
30, 2018 and 2017.</p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt 0.5in; text-indent: 0in"></p>
<table border="0" cellpadding="0" cellspacing="0" align="center" style="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="width: 61%"> </td>
<td style="width: 10%"> </td>
<td style="width: 9%"> </td>
<td style="width: 11%"> </td>
<td style="width: 9%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-top: Black 0.5pt solid"> </td>
<td colspan="2" style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">Three months ended June 30, </td>
<td colspan="2" style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">Six months ended <br />
June 30, </td></tr>
<tr>
<td style="font-weight: bold; vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: justify">(in thousands)</td>
<td style="font-weight: bold; vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: center">2018</td>
<td style="font-weight: bold; vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: center">2017</td>
<td style="font-weight: bold; vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: center">2018</td>
<td style="font-weight: bold; vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: center">2017</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: left">Pretax Derivative valuation reclassified from Accumulated Other Comprehensive Income:</td>
<td style="font-weight: bold"> </td>
<td> </td>
<td style="font-weight: bold"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">Expense related to interest rate swaps included in Income <br />
before taxes (a)</td>
<td style="font-weight: bold; text-align: right">$54</td>
<td style="text-align: right">$343</td>
<td style="font-weight: bold; text-align: right">$234</td>
<td style="text-align: right">$943</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">Income tax effect</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">(13)</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">(130)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">(56)</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">(358)</td></tr>
<tr style="vertical-align: bottom">
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: left">Effect on net income due to items reclassified from Accumulated Other Comprehensive Income</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">$41</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">$213</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">$178</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">$585</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold">Pretax pension and postretirement liabilities reclassified from Accumulated Other Comprehensive Income:</td>
<td style="font-weight: bold"> </td>
<td style="font-weight: bold"> </td>
<td style="font-weight: bold"> </td>
<td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">Pension/postretirement curtailment</td>
<td style="font-weight: bold; text-align: right">($518)</td>
<td style="text-align: right"> $-   </td>
<td style="font-weight: bold; text-align: right">($518)</td>
<td style="text-align: right"> $-   </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">Amortization of prior service credit (b)</td>
<td style="font-weight: bold; text-align: right">       (1,113)</td>
<td style="text-align: right">    (1,113)</td>
<td style="font-weight: bold; text-align: right">        (2,227)</td>
<td style="text-align: right">     (2,226)</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">Amortization of net actuarial loss (b)</td>
<td style="font-weight: bold; text-align: right">        1,291</td>
<td style="text-align: right">     1,353</td>
<td style="font-weight: bold; text-align: right">         2,588</td>
<td style="text-align: right">      2,700</td></tr>
<tr style="vertical-align: bottom">
<td style="border-top: Black 0.5pt solid; text-align: justify">Total pretax amount reclassified</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; text-align: right">(340)</td>
<td style="border-top: Black 0.5pt solid; text-align: right">240</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; text-align: right">(157)</td>
<td style="border-top: Black 0.5pt solid; text-align: right">474</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Income tax effect</td>
<td style="font-weight: bold; text-align: right">102</td>
<td style="text-align: right">(72)</td>
<td style="font-weight: bold; text-align: right">47</td>
<td style="text-align: right">(142)</td></tr>
<tr style="vertical-align: bottom">
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: left">Effect on net income due to items reclassified from Accumulated Other Comprehensive Income</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">($238)</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$168</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">($110)</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$332</td></tr>
</table>
<p style="margin-top: 0; margin-bottom: 0"> </p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt 0.5in; text-indent: 0in"></p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt 0.5in; text-indent: 0in"></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(a)</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif">Included in Interest expense are payments related to the interest rate
swap agreements and amortization of swap buyouts (see Note 16).</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 10pt"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(b)</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif">These accumulated other comprehensive income components are included
in Other expense, net (see Note 4). The curtailment adjustment was included in restructuring expenses, net.</font></td></tr></table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0in"><b><i>12. Contract Assets and Liabilities
</i></b></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">Beginning in 2018, Contract assets
includes unbilled amounts typically resulting from sales under contracts when the cost-to-cost method of revenue recognition is
utilized, and revenue recognized exceeds the amount billed to the customer. For periods prior to 2018, that asset was included
in Accounts receivable. At the date of adoption of ASC 606, we recorded Contract assets of $47.4 million, which included the amount
that was in Accounts receivable as of December 31, 2017, and additional transition adjustments that resulted from the retrospective
application of ASC 606 to contracts in process at the time of adoption.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">Contract assets are transferred
to Accounts receivable, net when the entitlement to pay becomes unconditional. Contract liabilities include advance payments and
billings in excess of revenue recognized. Contract liabilities are included in Accrued liabilities in the Consolidated Balance
Sheet.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">Contract assets and Contract liabilities
are reported on the Consolidated Balance Sheets in a net position on a contract-by-contract basis at the end of each reporting
period. Contract assets and contract liabilities were as follows:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0.5in; text-align: left"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 66%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 17%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 17%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font: bold 10pt Arial, Helvetica, Sans-Serif; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><b>(in thousands)  </b></font></td>
<td style="font: bold 10pt Arial, Helvetica, Sans-Serif; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">June 30,<br />
 2018</td>
<td style="font: bold 10pt Arial, Helvetica, Sans-Serif; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">December 31,<br />
 2017</td></tr>
<tr style="vertical-align: bottom">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; border-bottom: Black 0.5pt solid; text-align: justify; border-top-color: Black; border-top-width: 0.5pt">Contract assets</td>
<td style="font: bold 10pt Arial, Helvetica, Sans-Serif; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">$59,244</td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">$  -</td></tr>
<tr style="vertical-align: bottom">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; border-bottom: Black 0.5pt solid; text-align: justify; border-top-color: Black; border-top-width: 0.5pt">Contract liabilities</td>
<td style="font: bold 10pt Arial, Helvetica, Sans-Serif; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">4,220</td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">-</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0.5in; text-align: left"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">Contract assets increased
$11.8 million during the six month period ended June 30, 2018 as compared to the January 1, 2018 opening balance
sheet, as adjusted for the adoption of ASC 606 (see Note 2). The increase was primarily due to an increase in unbilled
revenue related to the satisfaction of performance obligations, in excess of the amounts billed to customers. There were no
impairment losses related to our Contract assets during the six month period ended June 30, 2018.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">Contract liabilities increased $3.5 million
during the six month period ended June 30, 2018, as compared to the January 1, 2018 opening balance sheet, as adjusted for
the adoption of ASC 606, primarily due to increased billings in excess of revenue recognized. Revenue recognized for the six month
period ended June 30, 2018, that was included in the Contract liability balance at the beginning of the year was less than $1 million,
and represented revenue primarily in the ASC reporting unit.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0in"><b><i>13. Inventories </i></b></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">Costs included in inventories are
raw materials, labor, supplies and allocable depreciation and overhead. Raw material inventories are valued on an average cost
basis. Other inventory cost elements are valued at cost, using the first-in, first-out method. The Company writes down the inventories
for estimated obsolescence, and to lower of cost or net realizable value based upon assumptions about future demand and market
conditions. If actual demand or market conditions are less favorable than those projected by the Company, additional inventory
write-downs may be required. Once established, the original cost of the inventory less the related write-down represents the new
cost basis of such inventories. The decrease in Inventories in 2018, compared to the balances as of December 31, 2017, was principally
due to the cumulative effect of adopting ASC 606 (see Note 2) which decreased Inventories by $47.1 million.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">As of June 30, 2018 and December
31, 2017, inventories consisted of the following:</p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0in"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 90%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 67%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 14%"> </td>
<td style="font: bold 11pt Calibri, Helvetica, Sans-Serif; width: 19%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><b>(in thousands)  </b></font></td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">June 30,  2018</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">December 31, 2017</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Raw materials</td>
<td style="font-weight: bold; text-align: right">$39,822</td>
<td style="text-align: right">$42,215</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Work in process</td>
<td style="font-weight: bold; text-align: right">      44,526</td>
<td style="text-align: right">              65,448</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Finished goods</td>
<td style="font-weight: bold; text-align: right">      13,311</td>
<td style="text-align: right">              28,856</td></tr>
<tr style="vertical-align: bottom">
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: justify">Total inventories</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$97,659</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$136,519</td></tr></table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0in"><b><i>17. Contingencies </i></b></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt; text-indent: 0in"><b>Asbestos Litigation</b></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%">
<tr>
<td style="width: 100%; padding-left: 0.5in; text-align: center; text-indent: 0.5in"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">Albany International Corp. is a
defendant in suits brought in various courts in the United States by plaintiffs who allege that they have suffered personal injury
as a result of exposure to asbestos-containing paper machine clothing synthetic dryer fabrics marketed during the period from 1967
to 1976 and used in certain paper mills.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">We were defending 3,677 claims as
of June 30, 2018.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The following table sets forth the
number of claims filed, the number of claims settled, dismissed or otherwise resolved, and the aggregate settlement amount during
the periods presented:</p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0in"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="font-weight: bold; width: 26%"></td>
<td style="font-weight: bold; width: 15%"></td>
<td style="font-weight: bold; width: 14%"></td>
<td style="font-weight: bold; width: 15%"></td>
<td style="font-weight: bold; width: 15%"></td>
<td style="font-weight: bold; width: 15%"></td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-top: Black 1pt solid; border-right: Black 0.5pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; text-align: center">Year ended December 31,</td>
<td style="font-weight: bold; border-top: Black 1pt solid; border-right: Black 0.5pt solid; border-bottom: Black 1pt solid; text-align: center; border-left-color: Black; border-left-width: 0.5pt">Opening Number of Claims</td>
<td style="font-weight: bold; border-top: Black 1pt solid; border-right: Black 0.5pt solid; border-bottom: Black 1pt solid; text-align: center; border-left-color: Black; border-left-width: 0.5pt">Claims Dismissed,Settled, or Resolved</td>
<td style="font-weight: bold; border-top: Black 1pt solid; border-right: Black 0.5pt solid; border-bottom: Black 1pt solid; text-align: center; border-left-color: Black; border-left-width: 0.5pt">New Claims</td>
<td style="font-weight: bold; border-top: Black 1pt solid; border-right: Black 0.5pt solid; border-bottom: Black 1pt solid; text-align: center; border-left-color: Black; border-left-width: 0.5pt">Closing Number of Claims</td>
<td style="font-weight: bold; border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; border-left-color: Black; border-left-width: 0.5pt">Amounts Paid (thousands) to Settle or Resolve</td></tr>
<tr style="vertical-align: middle">
<td style="border: Black 0.5pt solid; text-align: right; padding-right: 3pt">2013</td>
<td style="border-top: Black 0.5pt solid; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt; padding-right: 3pt">4,463</td>
<td style="border-top: Black 0.5pt solid; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt; padding-right: 3pt">230</td>
<td style="border-top: Black 0.5pt solid; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt; padding-right: 3pt">66</td>
<td style="border-top: Black 0.5pt solid; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt; padding-right: 3pt">4,299</td>
<td style="border-top: Black 0.5pt solid; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt; padding-right: 3pt">$78</td></tr>
<tr style="vertical-align: middle">
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; border-top-color: Black; border-top-width: 0.5pt; text-align: right; padding-right: 3pt">2014</td>
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt; padding-right: 3pt">4,299</td>
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt; padding-right: 3pt">625</td>
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt; padding-right: 3pt">147</td>
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt; padding-right: 3pt">3,821</td>
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt; padding-right: 3pt">437</td></tr>
<tr style="vertical-align: middle">
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; border-top-color: Black; border-top-width: 0.5pt; text-align: right; padding-right: 3pt">2015</td>
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt; padding-right: 3pt">3,821</td>
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt; padding-right: 3pt">116</td>
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt; padding-right: 3pt">86</td>
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt; padding-right: 3pt">3,791</td>
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt; padding-right: 3pt">164</td></tr>
<tr style="vertical-align: middle">
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; border-top-color: Black; border-top-width: 0.5pt; text-align: right; padding-right: 3pt">2016</td>
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt; padding-right: 3pt">3,791</td>
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt; padding-right: 3pt">148</td>
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt; padding-right: 3pt">102</td>
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt; padding-right: 3pt">3,745</td>
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt; padding-right: 3pt">758</td></tr>
<tr style="vertical-align: middle">
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; border-top-color: Black; border-top-width: 0.5pt; text-align: right; padding-right: 3pt">2017</td>
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt; padding-right: 3pt">3,745</td>
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt; padding-right: 3pt">105</td>
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt; padding-right: 3pt">90</td>
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt; padding-right: 3pt">3,730</td>
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt; padding-right: 3pt">55</td></tr>
<tr style="vertical-align: middle">
<td style="font-size: 9pt; font-weight: bold; border: Black 1pt solid; padding-right: 3pt">2018 (as of June 30)</td>
<td style="font-weight: bold; border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; padding-right: 3pt">3,730</td>
<td style="font-weight: bold; border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; padding-right: 3pt">105</td>
<td style="font-weight: bold; border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; padding-right: 3pt">52</td>
<td style="font-weight: bold; border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; padding-right: 3pt">3,677</td>
<td style="font-weight: bold; border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; padding-right: 3pt">$93</td></tr>
</table>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0in"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">We anticipate that additional claims
will be filed against the Company and related companies in the future, but are unable to predict the number and timing of such
future claims. Due to the fact that information sufficient to meaningfully estimate a range of possible loss of a particular claim
is typically not available until late in the discovery process, we do not believe a meaningful estimate can be made regarding the
range of possible loss with respect to pending or future claims and therefore are unable to estimate a range of reasonably possible
loss in excess of amounts already accrued for pending or future claims.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">While we believe we have meritorious
defenses to these claims, we have settled certain claims for amounts we consider reasonable given the facts and circumstances of
each case. Our insurance carrier has defended each case and funded settlements under a standard reservation of rights. As of June
30, 2018 we had resolved, by means of settlement or dismissal, 37,699 claims. The total cost of resolving all claims was $10.3
million. Of this amount, almost 100% was paid by our insurance carrier, who has confirmed that we have approximately $140 million
of remaining coverage under primary and excess policies that should be available with respect to current and future asbestos claims.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The Company’s subsidiary,
Brandon Drying Fabrics, Inc. (“Brandon”), is also a separate defendant in many of the asbestos cases in which Albany
is named as a defendant, despite never having manufactured any fabrics containing asbestos. While Brandon was defending against
7,708 claims as of June 30, 2018, only ten claims have been filed against Brandon since January 1, 2012, and no settlement costs
have been incurred since 2001. Brandon was acquired by the Company in 1999, and has its own insurance policies covering periods
prior to 1999. Since 2004, Brandon’s insurance carriers have covered 100% of indemnification and defense costs, subject to
policy limits and a standard reservation of rights.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">In some of these asbestos cases,
the Company is named both as a direct defendant and as the “successor in interest” to Mount Vernon Mills (“Mount
Vernon”). We acquired certain assets from Mount Vernon in 1993. Certain plaintiffs allege injury caused by asbestos-containing
products alleged to have been sold by Mount Vernon many years prior to this acquisition. Mount Vernon is contractually obligated
to indemnify the Company against any liability arising out of such products. We deny any liability for products sold by Mount Vernon
prior to the acquisition of the Mount Vernon assets. Pursuant to its contractual indemnification obligations, Mount Vernon has
assumed the defense of these claims. On this basis, we have successfully moved for dismissal in a number of actions.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">We currently do not anticipate,
based on currently available information, that the ultimate resolution of the aforementioned proceedings will have a material adverse
effect on the financial position, results of operations, or cash flows of the Company. Although we cannot predict the number and
timing of future claims, based on the foregoing factors, the trends in claims filed against us, and available insurance, we also
do not currently anticipate that potential future claims will have a material adverse effect on our financial position, results
of operations, or cash flows.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0in"><b><i>18. Changes in Shareholders’
Equity </i></b></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 12pt 0 0 0.5in; text-indent: 0.5in">The following table summarizes changes
in Shareholders’ Equity:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in"><b> </b></p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0in"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: 11pt Calibri, Helvetica, Sans-Serif"></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: 11pt Calibri, Helvetica, Sans-Serif"></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: 11pt Calibri, Helvetica, Sans-Serif"></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: 11pt Calibri, Helvetica, Sans-Serif"></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: 11pt Calibri, Helvetica, Sans-Serif"></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: 11pt Calibri, Helvetica, Sans-Serif"></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: 11pt Calibri, Helvetica, Sans-Serif"></td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: justify; border-top: Black 1pt solid; border-bottom: Black 1pt solid">(in thousands)</td><td style="font-weight: bold; padding-bottom: 1pt; border-top: Black 1pt solid; border-bottom: Black 1pt solid"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-top: Black 1pt solid; border-bottom: Black 1pt solid">Common Stock Class<br />  A and B</td><td style="font-weight: bold; padding-bottom: 1pt; border-top: Black 1pt solid; border-bottom: Black 1pt solid"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-top: Black 1pt solid; border-bottom: Black 1pt solid">Additional paid in capital</td><td style="font-weight: bold; padding-bottom: 1pt; border-top: Black 1pt solid; border-bottom: Black 1pt solid"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-top: Black 1pt solid; border-bottom: Black 1pt solid">Retained earnings</td><td style="font-weight: bold; padding-bottom: 1pt; border-top: Black 1pt solid; border-bottom: Black 1pt solid"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-top: Black 1pt solid; border-bottom: Black 1pt solid">Accumulated items of other comprehensive income/(loss)</td><td style="font-weight: bold; padding-bottom: 1pt; border-top: Black 1pt solid; border-bottom: Black 1pt solid"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-top: Black 1pt solid; border-bottom: Black 1pt solid">Treasury stock</td><td style="font-weight: bold; padding-bottom: 1pt; border-top: Black 1pt solid; border-bottom: Black 1pt solid"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-top: Black 1pt solid; border-bottom: Black 1pt solid">Noncontrolling Interest</td><td style="font-weight: bold; padding-bottom: 1pt; border-top: Black 1pt solid; border-bottom: Black 1pt solid"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-top: Black 1pt solid; border-bottom: Black 1pt solid">Total Equity</td></tr>
<tr style="vertical-align: bottom">
<td style="width: 37%; font-weight: bold; text-align: justify">December 31, 2017</td><td style="width: 2%; font-weight: bold"> </td>
<td style="width: 6%; font-weight: bold; text-align: right">$40</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td>
<td style="width: 6%; font-weight: bold; text-align: right">$428,423</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td>
<td style="width: 6%; font-weight: bold; text-align: right">$534,082</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td>
<td style="width: 6%; font-weight: bold; text-align: right">($135,901</td><td style="width: 1%; font-weight: bold; text-align: left">)</td><td style="width: 2%; font-weight: bold"> </td>
<td style="width: 6%; font-weight: bold; text-align: right">($256,876</td><td style="width: 1%; font-weight: bold; text-align: left">)</td><td style="width: 2%; font-weight: bold"> </td>
<td style="width: 6%; font-weight: bold; text-align: right">$3,247</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td>
<td style="width: 6%; font-weight: bold; text-align: right">$573,015</td><td style="width: 1%; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Adoption of accounting standards (a),(b)</td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">(5,085</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">(327</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: right">(5,412</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Net income</td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">40,610</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">178</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">40,788</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Compensation and benefits paid or payable in shares</td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">1,062</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">274</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">1,336</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Options exercised</td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">150</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">150</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Dividends declared</td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">(10,968</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">(10,968</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Cumulative translation adjustments</td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">(15,570</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">4</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">(15,566</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Pension and postretirement liability adjustments</td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">2,114</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">2,114</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt">Derivative valuation adjustment</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: right">6,202</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: right">6,202</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: justify; padding-bottom: 1pt; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><b>June 30, 2018</b></td><td style="font-weight: bold; padding-bottom: 1pt; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><b> </b></td>
<td style="font-weight: bold; text-align: right; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><b>$40</b></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><b> </b></td><td style="font-weight: bold; padding-bottom: 1pt; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><b> </b></td>
<td style="font-weight: bold; text-align: right; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><b>$429,635</b></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><b> </b></td><td style="font-weight: bold; padding-bottom: 1pt; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><b> </b></td>
<td style="font-weight: bold; text-align: right; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><b>$558,639</b></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><b> </b></td><td style="font-weight: bold; padding-bottom: 1pt; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><b> </b></td>
<td style="font-weight: bold; text-align: right; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><b>($143,155</b></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><b>)</b></td><td style="font-weight: bold; padding-bottom: 1pt; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><b> </b></td>
<td style="font-weight: bold; text-align: right; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><b>($256,602</b></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><b>)</b></td><td style="font-weight: bold; padding-bottom: 1pt; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><b> </b></td>
<td style="font-weight: bold; text-align: right; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><b>$3,102</b></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><b> </b></td><td style="font-weight: bold; padding-bottom: 1pt; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><b> </b></td>
<td style="font-weight: bold; text-align: right; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><b>$591,659</b></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><b> </b></td></tr>
</table>
<p style="margin-top: 0; margin-bottom: 0"> </p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0in"></p>
<table cellpadding="0" cellspacing="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 4pt"><tr style="vertical-align: top">
<td style="width: 0"></td><td style="width: 22pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(a)</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif">As
described in Note 2, the Company adopted ASC 606 effective January 1, 2018, which resulted in a decrease to Retained earnings
of $5.6 million and a $0.3 million decrease to Noncontrolling interest.</font></td>
</tr></table>
<table cellpadding="0" cellspacing="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 4pt"><tr style="vertical-align: top">
<td style="width: 0"></td><td style="width: 22pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(b)</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif">As
described in Note 7, the Company adopted ASU 2016-16 effective January 1, 2018, which resulted in a $0.5 increase to Retained
earnings.</font></td></tr></table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 4pt; margin-left: 0; text-indent: 0"><b>19. Recent
Accounting Pronouncements</b></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 0.5in; text-indent: 0in"><b> </b></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">In February 2016, an accounting
update was issued which will require lessees to record most operating leases on their balance sheets, but recognize the expenses
in the income statement in a manner similar to current practice. Under the new standard, lessees will be required to recognize
a lease liability for the obligation to make lease payments, and an asset for the right to use the underlying asset for the lease
term. Expenses related to operating leases will be recognized on a straight-line basis, while those determined to be financing
leases will be recognized following a front-loaded expense profile, in which interest and amortization are presented separately
in the income statement. The principal effect on the Company’s financial statements will be an increase in assets and liabilities.
The Company is evaluating practical expedients that may be used, and a new method of transitioning to this standard which was recently
approved by the FASB, both of which could affect the impact that the standard has on the Company’s financial statements.
Additionally, we are evaluating changes to our processes and internal controls to ensure we meet the standard’s reporting
and disclosure requirements.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">In August 2017, an accounting update
was issued which simplifies the application of hedge accounting to better align the financial reporting of hedging relationships
with a company’s risk management activities. We do not expect a significant impact to our consolidated assets and liabilities,
net earnings, or cash flows as a result of adopting this new standard. We plan to adopt the new standard effective January 1,
2019.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">In February 2018, an accounting
update was issued which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded
tax effects resulting from the Tax Cuts and Jobs Act. This update is effective for annual and interim periods in fiscal years beginning
after December 15, 2018. We are currently evaluating the impact of this update.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in"><b><i>Basis of Presentation</i></b></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">In the opinion of management, the
accompanying unaudited consolidated financial statements contain all adjustments necessary for a fair presentation of results for
such periods. Albany International Corp. (Albany, the Registrant, the Company, we, us, or our) consolidates the financial results
of its subsidiaries for all periods presented. The results for any interim period are not necessarily indicative of results for
the full year.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The preparation of financial statements
in accordance with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and
assumptions that affect the amounts reported in Albany International Corp.’s Consolidated Financial Statements and accompanying
Notes. Actual results could differ materially from those estimates.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The information included in this
Quarterly Report on Form 10-Q should be read in conjunction with “Risk Factors,” “Legal Proceedings,” “Management’s
Discussion and Analysis of Financial Condition and Results of Operation,” “Quantitative and Qualitative Disclosures
about Market Risk” and the Consolidated Financial Statements and Notes thereto included in Items 1A, 3, 7, 7A and 8, respectively,
of the Albany International Corp. Annual Report on Form 10-K for the year ended December 31, 2017.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">Effective January 1, 2018, we adopted
the provisions of ASC 606, <i>Revenue from contracts with customers</i>, using the modified retrospective method for transition
as discussed in Note 2, Revenue Recognition. Accounting policies have been applied consistently to periods presented, except for
the application of ASC 606, as further described in Note 2.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The table below presents the cumulative
effect of changes made to our December 31, 2017 Consolidated Balance Sheet as the result of adoption of ASC 606:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0in"> </p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td colspan="6" style="text-align: center">ALBANY INTERNATIONAL CORP.</td></tr>
<tr style="vertical-align: bottom">
<td colspan="6" style="text-align: center">CONSOLIDATED BALANCE SHEET</td></tr>
<tr style="vertical-align: bottom">
<td colspan="6" style="text-align: center">(in thousands, except share data)</td></tr>
<tr style="vertical-align: bottom">
<td colspan="6" style="text-align: center">(unaudited)</td></tr>
</table>
<p style="margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="text-align: left"> </td><td> </td>
<td colspan="2"></td><td> </td>
<td colspan="2"></td><td> </td>
<td colspan="2"></td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="text-align: center; border-bottom: Black 1pt solid">As previously reported at December 31, 2017</td><td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="text-align: center; border-bottom: Black 1pt solid">Adjustments<br /> Increase/(decrease)</td><td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="text-align: center; border-bottom: Black 1pt solid">Opening balance, as<br /> adjusted, January 1, 2018</td></tr>
<tr style="vertical-align: bottom">
<td>ASSETS</td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="width: 46%; text-align: left">  Cash and cash equivalents</td><td style="width: 5%"> </td>
<td style="width: 12%; text-align: right">$183,727</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 12%; text-align: right">$-</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 12%; text-align: right">$183,727</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">  Accounts receivable, net</td><td> </td>
<td style="text-align: right">202,675</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">7,667</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">210,342</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left">  Contract assets</td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">47,415</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">47,415</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td>  Inventories</td><td> </td>
<td style="text-align: right">136,519</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">(47,054</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: right">89,465</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left">  Income taxes prepaid and receivable</td><td> </td>
<td style="text-align: right">6,266</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">6,266</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt">  Prepaid expenses and other current assets</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">14,520</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">14,520</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left; padding-left: 11pt">  Total current assets</td><td> </td>
<td style="text-align: right">543,707</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">8,028</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">551,735</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">  Property, plant and equipment, net</td><td> </td>
<td style="text-align: right">454,302</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">454,302</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left">  Intangibles, net</td><td> </td>
<td style="text-align: right">55,441</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">55,441</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td>  Goodwill</td><td> </td>
<td style="text-align: right">166,796</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">166,796</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left">  Deferred income taxes</td><td> </td>
<td style="text-align: right">68,648</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">1,756</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">70,404</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">  Noncurrent receivables</td><td> </td>
<td style="text-align: right">32,811</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">32,811</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left; padding-bottom: 1pt">  Other assets</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">39,493</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">1,119</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">40,612</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 11pt">  Total assets</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">$1,361,198</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">$10,903</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">$1,372,101</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-family: Arial MT; font-weight: bold; font-style: italic; text-align: right"> </td><td style="font-family: Arial MT; font-weight: bold; font-style: italic"> </td>
<td style="font-family: Arial MT; font-weight: bold; font-style: italic; text-align: right"> </td><td style="font-family: Arial MT; font-weight: bold; font-style: italic; text-align: left"> </td><td style="font-family: Arial MT; font-weight: bold; font-style: italic"> </td>
<td style="font-family: Arial MT; font-weight: bold; font-style: italic; text-align: right"> </td><td style="font-family: Arial MT; font-weight: bold; font-style: italic; text-align: left"> </td><td style="font-family: Arial MT; font-weight: bold; font-style: italic"> </td>
<td style="font-family: Arial MT; font-weight: bold; font-style: italic; text-align: right"> </td><td style="font-family: Arial MT; font-weight: bold; font-style: italic; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left">  Notes and loans payable</td><td> </td>
<td style="text-align: right">$262</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">$-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">$262</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">  Accounts payable</td><td> </td>
<td style="text-align: right">44,899</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">44,899</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left">  Accrued liabilities</td><td> </td>
<td style="text-align: right">105,914</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">16,808</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">122,722</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">  Current maturities of long-term debt</td><td> </td>
<td style="text-align: right">1,799</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">1,799</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left; padding-bottom: 1pt">  Income taxes payable</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">8,643</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">8,643</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">  Total current liabilities</td><td> </td>
<td style="text-align: right">161,517</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">16,808</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">178,325</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td>  Long-term debt</td><td> </td>
<td style="text-align: right">514,120</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">514,120</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">  Other noncurrent liabilities</td><td> </td>
<td style="text-align: right">101,555</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">101,555</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left; padding-bottom: 1pt">  Deferred taxes and other liabilities</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">10,991</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">52</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">11,043</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt">  Total liabilities</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">788,183</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">16,860</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">805,043</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">SHAREHOLDERS' EQUITY</td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td>  Preferred stock, par value $5.00 per share;</td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left; padding-left: 11pt">  authorized 2,000,000 shares; none issued</td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td>  Class A Common Stock, par value $.001 per share;</td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="text-align: left; padding-left: 11pt">  authorized 100,000,000 shares; issued 37,395,753 in 2017</td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 22pt">  and 37,319,266 in 2016</td><td> </td>
<td style="text-align: right">37</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">37</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td>  Class B Common Stock, par value $.001 per share;</td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left; padding-left: 11pt">  authorized 25,000,000 shares; issued and</td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left; padding-left: 11pt">  outstanding 3,233,998 in 2017 and 2016</td><td> </td>
<td style="text-align: right">3</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">3</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">  Additional paid in capital</td><td> </td>
<td style="text-align: right">428,423</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">428,423</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left">  Retained earnings</td><td> </td>
<td style="text-align: right">534,082</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">(5,630</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: right">528,452</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">  Accumulated items of other comprehensive income:</td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 11pt">  Translation adjustments</td><td> </td>
<td style="text-align: right">(87,318</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">(87,318</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left">  Pension and postretirement liability adjustments</td><td> </td>
<td style="text-align: right">(50,536</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">(50,536</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">  Derivative valuation adjustment</td><td> </td>
<td style="text-align: right">1,953</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">1,953</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td colspan="2" style="text-align: left">  Treasury stock (Class A), at cost 8,431,335 shares in 2017</td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 11pt"> and 8,443,444 shares in 2016</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">(256,876</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">(256,876</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">  Total Company shareholders' equity</td><td> </td>
<td style="text-align: right">569,768</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">(5,630</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: right">564,138</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left; padding-bottom: 1pt">  Noncontrolling interest</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">3,247</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">(327</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">2,920</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt"> Total equity</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">573,015</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">(5,957</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">567,058</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 11pt">  Total liabilities and shareholders' equity</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">$1,361,198</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">$10,903</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">$1,372,101</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">The following table disaggregates revenue for
each reporting unit by timing of revenue recognition:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 4%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 36%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 20%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 20%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; border-bottom: Black 0.5pt solid; width: 20%"> </td></tr>
<tr style="background-color: white">
<td style="font-weight: bold; font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom; border-top: Black 0.5pt solid"> </td>
<td style="font-weight: bold; font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom; border-top: Black 0.5pt solid"> </td>
<td colspan="2" style="font-weight: bold; vertical-align: middle; border-top: Black 0.5pt solid; text-align: center">For the Six Months Ended</td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td></tr>
<tr style="background-color: white">
<td style="font-weight: bold; vertical-align: middle"> </td>
<td style="font-weight: bold; font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td colspan="2" style="font-weight: bold; vertical-align: middle; text-align: center">June 30, 2018</td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td colspan="2" style="font-weight: bold; border-bottom: Black 0.5pt solid">(in thousands)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">Point in Time Revenue Recognition</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">Over Time Revenue Recognition</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">Total</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font-family: Calibri, Helvetica, Sans-Serif"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif"> </td></tr>
<tr style="vertical-align: middle; background-color: white">
<td colspan="2" style="border-bottom: Black 0.5pt solid">Machine Clothing</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">$309,186</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">$1,600</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">$310,786</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font-family: Calibri, Helvetica, Sans-Serif"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td></tr>
<tr style="background-color: white">
<td colspan="2" style="vertical-align: middle">Albany Engineered Composites</td>
<td style="font-weight: bold; vertical-align: bottom; text-align: right"> </td>
<td style="font-weight: bold; vertical-align: bottom; text-align: right"> </td>
<td style="font-weight: bold; vertical-align: bottom; text-align: right"> </td></tr>
<tr style="background-color: white">
<td style="font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="vertical-align: middle">ASC</td>
<td style="font-weight: bold; vertical-align: bottom; text-align: right">                      -   </td>
<td style="font-weight: bold; vertical-align: bottom; text-align: right">               87,806</td>
<td style="font-weight: bold; vertical-align: bottom; text-align: right">               87,806</td></tr>
<tr>
<td style="font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom; border-bottom: Black 0.5pt solid; background-color: white"> </td>
<td style="vertical-align: middle; border-bottom: Black 0.5pt solid; background-color: white">Other AEC</td>
<td style="font-weight: bold; vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: right">               11,744</td>
<td style="font-weight: bold; vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: right; background-color: white">               75,870</td>
<td style="font-weight: bold; vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: right; background-color: white">               87,614</td></tr>
<tr style="background-color: white">
<td colspan="2" style="vertical-align: middle; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid">Total Albany Engineered Composites</td>
<td style="font-weight: bold; vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">               11,744</td>
<td style="font-weight: bold; vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">             163,676</td>
<td style="font-weight: bold; vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">             175,420</td></tr>
<tr style="background-color: white">
<td style="font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="vertical-align: middle"> </td>
<td style="font-weight: bold; vertical-align: bottom; text-align: right"> </td>
<td style="font-weight: bold; vertical-align: bottom; text-align: right"> </td>
<td style="font-weight: bold; vertical-align: bottom; text-align: right"> </td></tr>
<tr style="background-color: white">
<td style="font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="vertical-align: middle"> </td>
<td style="font-weight: bold; vertical-align: middle; text-align: right"> </td>
<td style="font-weight: bold; vertical-align: middle; text-align: right"> </td>
<td style="font-weight: bold; vertical-align: middle; text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td colspan="2" style="font: 11pt Calibri, Helvetica, Sans-Serif; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid">Total Revenue</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$320,930</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$165,276</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$486,206</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in"></p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The following table disaggregates MC
segment revenue by significant product groupings (paper machine clothing (PMC) and engineered fabrics), and, for PMC, the geographical
region to which the paper machine clothing was sold:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 75%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 5%"> </td>
<td style="width: 41%"> </td>
<td style="width: 45%"> </td></tr>
<tr style="background-color: white">
<td style="font-weight: bold; vertical-align: bottom; border-top: Black 0.5pt solid"> </td>
<td style="font-weight: bold; vertical-align: bottom; border-top: Black 0.5pt solid"> </td>
<td style="font-weight: bold; vertical-align: middle; border-top: Black 0.5pt solid; text-align: center">For the Six Months Ended</td></tr>
<tr style="background-color: white">
<td colspan="2" style="font-weight: bold; vertical-align: middle; border-bottom: Black 0.5pt solid">(in thousands)</td>
<td style="font-weight: bold; vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: center">June 30, 2018</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: middle; background-color: white">
<td colspan="2">Americas PMC</td>
<td style="font-weight: bold; text-align: right">$152,686</td></tr>
<tr style="vertical-align: middle; background-color: white">
<td colspan="2">Eurasia PMC</td>
<td style="font-weight: bold; text-align: right">                                   116,500</td></tr>
<tr style="vertical-align: middle; background-color: white">
<td colspan="2">Engineered Fabrics</td>
<td style="font-weight: bold; text-align: right">                                    41,600</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td colspan="2" style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid">Total Machine Clothing Net sales</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$310,786</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The following tables show the balances
as reported for the period ended June 30, 2018, and how the consolidated financial statements would have appeared if we had not
adopted ASC 606.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td colspan="11" style="text-align: center">ALBANY INTERNATIONAL CORP.</td></tr>
<tr style="vertical-align: bottom">
<td colspan="11" style="text-align: center">CONSOLIDATED STATEMENT OF INCOME</td></tr>
<tr style="vertical-align: bottom">
<td colspan="11" style="text-align: center">(in thousands, except per share amounts)</td></tr>
<tr style="vertical-align: bottom">
<td colspan="11" style="text-align: center">(unaudited)</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="padding-left: 6"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="padding-left: 6"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: center; width: 8%">As reported for the Three Months Ended June 30, 2018</td>
<td style="text-align: center; width: 1%"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: center; width: 8%">Adjustments to reverse effects of ASC 606</td>
<td style="text-align: center; width: 1%"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: center; width: 8%">As adjusted for the Three Months Ended June 30, 2018 to exclude adoption of ASC 606 </td>
<td style="width: 48%; padding-left: 6"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: center; width: 8%">As reported for the Six Months Ended June 30, 2018</td>
<td style="text-align: center; width: 1%"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: center; width: 8%">Adjustments to reverse effects of ASC 606</td>
<td style="text-align: center; width: 1%"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: center; width: 8%">As adjusted for the Six Months Ended June 30, 2018 to exclude adoption of ASC 606 </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="padding-left: 6"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: right">$256,225</td>
<td style="text-align: right"> </td>
<td style="text-align: right">$400</td>
<td style="text-align: right"> </td>
<td style="text-align: right">$256,625</td>
<td style="text-align: left; padding-left: 6">Net sales</td>
<td style="text-align: right">$486,206</td>
<td style="text-align: right"> </td>
<td style="text-align: right">($8,034)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">$478,172</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 0.5pt solid; text-align: right">164,047</td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right">2,304</td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right">166,351</td>
<td style="text-align: left; padding-left: 6">Cost of goods sold</td>
<td style="border-bottom: black 0.5pt solid; text-align: right">312,377</td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right">(4,222)</td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right">308,155</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left; padding-left: 6"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: right">        92,178</td>
<td style="text-align: right"> </td>
<td style="text-align: right">         (1,904)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">        90,274</td>
<td style="text-align: left; padding-left: 6">Gross profit</td>
<td style="text-align: right">173,829</td>
<td style="text-align: right"> </td>
<td style="text-align: right">(3,812)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">170,017</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right">        36,707</td>
<td style="text-align: right"> </td>
<td style="text-align: right">                5</td>
<td style="text-align: right"> </td>
<td style="text-align: right">        36,712</td>
<td style="text-align: left; padding-left: 6">   Selling, general, and administrative expenses</td>
<td style="text-align: right">78,637</td>
<td style="text-align: right"> </td>
<td style="text-align: right">(55)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">78,582</td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: right">        10,198</td>
<td style="text-align: right"> </td>
<td style="text-align: right">                 -</td>
<td style="text-align: right"> </td>
<td style="text-align: right">        10,198</td>
<td style="text-align: left; padding-left: 6">   Technical and research expenses</td>
<td style="text-align: right">20,515</td>
<td style="text-align: right"> </td>
<td style="text-align: right">                 -</td>
<td style="text-align: right"> </td>
<td style="text-align: right">20,515</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: right">          2,589</td>
<td style="text-align: right"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">                 -</td>
<td style="text-align: right"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">          2,589</td>
<td style="text-align: left; padding-left: 6">   Restructuring expenses, net</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">11,162</td>
<td style="text-align: right"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">                 -</td>
<td style="text-align: right"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">11,162</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left; padding-left: 6"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: right">        42,684</td>
<td style="text-align: right"> </td>
<td style="text-align: right">         (1,909)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">        40,775</td>
<td style="text-align: left; padding-left: 6">Operating income</td>
<td style="text-align: right">63,515</td>
<td style="text-align: right"> </td>
<td style="text-align: right">(3,757)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">59,758</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right">          4,621</td>
<td style="text-align: right"> </td>
<td style="text-align: right">                 -</td>
<td style="text-align: right"> </td>
<td style="text-align: right">          4,621</td>
<td style="text-align: left; padding-left: 6">   Interest expense, net</td>
<td style="text-align: right">8,909</td>
<td style="text-align: right"> </td>
<td style="text-align: right">                 -</td>
<td style="text-align: right"> </td>
<td style="text-align: right">8,909</td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="border-bottom: Black 0.5pt solid; text-align: right">            726</td>
<td style="text-align: right"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">                 -</td>
<td style="text-align: right"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">            726</td>
<td style="text-align: left; padding-left: 6">   Other expense, net</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">          2,178</td>
<td style="text-align: right"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">                 -</td>
<td style="text-align: right"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">          2,178</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left; padding-left: 6"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right">        37,337</td>
<td style="text-align: right"> </td>
<td style="text-align: right">         (1,909)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">        35,428</td>
<td style="text-align: left; padding-left: 6">Income before income taxes </td>
<td style="text-align: right">52,428</td>
<td style="text-align: right"> </td>
<td style="text-align: right">(3,757)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">48,671</td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="border-bottom: black 0.5pt solid; text-align: right">7,031</td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right">(507)</td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right">6,524</td>
<td style="text-align: left; padding-left: 6">   Income tax expense</td>
<td style="border-bottom: black 0.5pt solid; text-align: right">11,640</td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right">(1,108)</td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right">10,532</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left; padding-left: 6"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right">        30,306</td>
<td style="text-align: right"> </td>
<td style="text-align: right">         (1,402)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">        28,904</td>
<td style="text-align: left; padding-left: 6"> Net income </td>
<td style="text-align: right">        40,788</td>
<td style="text-align: right"> </td>
<td style="text-align: right">         (2,649)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">        38,139</td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="border-bottom: Black 0.5pt solid; text-align: right">             (59)</td>
<td style="text-align: right"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">             (27)</td>
<td style="text-align: right"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">             (86)</td>
<td style="text-align: left; padding-left: 6">Net income/(loss) attributable to the noncontrolling interest</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">            178</td>
<td style="text-align: right"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">             (84)</td>
<td style="text-align: right"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">              94</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 2pt double; text-align: right; border-top-color: Black; border-top-width: 0.5pt">$30,365</td>
<td style="text-align: right"> </td>
<td style="border-bottom: Black 2pt double; text-align: right; border-top-color: Black; border-top-width: 0.5pt">($1,375)</td>
<td style="text-align: right"> </td>
<td style="border-bottom: Black 2pt double; text-align: right; border-top-color: Black; border-top-width: 0.5pt">$28,990</td>
<td style="text-align: left; padding-left: 6"> Net income attributable to the Company </td>
<td style="border-bottom: Black 2pt double; text-align: right; border-top-color: Black; border-top-width: 0.5pt">$40,610</td>
<td style="text-align: right"> </td>
<td style="border-bottom: Black 2pt double; text-align: right; border-top-color: Black; border-top-width: 0.5pt">($2,565)</td>
<td style="text-align: right"> </td>
<td style="border-bottom: Black 2pt double; text-align: right; border-top-color: Black; border-top-width: 0.5pt">$38,045</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left; padding-left: 6"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: right">$0.94</td>
<td style="text-align: right"> </td>
<td style="text-align: right">($0.04)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">$0.90</td>
<td style="text-align: left; padding-left: 6">Earnings per share attributable to Company shareholders - Basic</td>
<td style="text-align: right">$1.26</td>
<td style="text-align: right"> </td>
<td style="text-align: right">($0.08)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">$1.18</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left; padding-left: 6"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right">$0.94</td>
<td style="text-align: right"> </td>
<td style="text-align: right">($0.04)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">$0.90</td>
<td style="text-align: left; padding-left: 6">Earnings per share attributable to Company shareholders - Diluted</td>
<td style="text-align: right">$1.26</td>
<td style="text-align: right"> </td>
<td style="text-align: right">($0.08)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">$1.18</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in"></p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in; text-indent: 0in"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td colspan="11" style="text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif">ALBANY INTERNATIONAL CORP.</font></td></tr>
<tr style="vertical-align: bottom">
<td colspan="11" style="text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif">CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME/(LOSS)</font></td></tr>
<tr style="vertical-align: bottom">
<td colspan="11" style="text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif">(in thousands)</font></td></tr>
<tr style="vertical-align: bottom">
<td colspan="11" style="text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif">(unaudited)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: center; padding-left: 6"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="padding-left: 6"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: center; width: 8%"><font style="font-family: Arial, Helvetica, Sans-Serif">As
reported for the Three Months Ended June 30, 2018</font></td>
<td style="text-align: center; width: 1%"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 0.5pt solid; text-align: center; width: 8%"><font style="font-family: Arial, Helvetica, Sans-Serif">Adjustments
to reverse effects of ASC 606</font></td>
<td style="text-align: center; width: 1%"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 0.5pt solid; text-align: center; width: 8%"><font style="font-family: Arial, Helvetica, Sans-Serif">As
adjusted for the Three Months Ended June 30, 2018 to exclude adoption of ASC 606 </font></td>
<td style="width: 48%; padding-left: 6"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 0.5pt solid; text-align: center; width: 8%"><font style="font-family: Arial, Helvetica, Sans-Serif">As
reported for the Six Months Ended June 30, 2018</font></td>
<td style="text-align: center; width: 1%"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 0.5pt solid; text-align: center; width: 8%"><font style="font-family: Arial, Helvetica, Sans-Serif">Adjustments
to reverse effects of ASC 606</font></td>
<td style="text-align: center; width: 1%"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 0.5pt solid; text-align: center; width: 8%"><font style="font-family: Arial, Helvetica, Sans-Serif">As
adjusted for the Six Months Ended June 30, 2018 to exclude adoption of ASC 606 </font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="padding-left: 6"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$30,306</font></td>
<td style="text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">($1,402)</font></td>
<td style="text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$28,904</font></td>
<td style="text-align: left; padding-left: 6"><font style="font-family: Arial, Helvetica, Sans-Serif">Net income</font></td>
<td style="text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$40,788</font></td>
<td style="text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">($2,649)</font></td>
<td style="text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$38,139</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left; padding-left: 6"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif">   </font></td>
<td style="text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; padding-left: 6"><font style="font-family: Arial, Helvetica, Sans-Serif">Other comprehensive
income/(loss), before tax:</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="background-color: #BFBFBF">
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">      (30,851)</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">           839</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">      (30,012)</font></td>
<td style="padding-left: 6; vertical-align: middle; text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif">Foreign
currency translation adjustments</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">      (13,346)</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">           531</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">      (12,815)</font></td></tr>
<tr>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">          (518)</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">               -</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">          (518)</font></td>
<td style="padding-left: 6; vertical-align: middle; text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif">Pension/postretirement
curtailment</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">          (518)</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">               -</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">          (518)</font></td></tr>
<tr style="background-color: #BFBFBF">
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="padding-left: 6; vertical-align: middle; text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif">Amortization
of pension liability adjustments:</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">       (1,113)</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">               -</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">       (1,113)</font></td>
<td style="padding-left: 6; vertical-align: middle; text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif">   Prior
service credit</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">       (2,227)</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">               -</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">       (2,227)</font></td></tr>
<tr style="background-color: #BFBFBF">
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">        1,291</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">               -</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">        1,291</font></td>
<td style="padding-left: 6; vertical-align: middle; text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif">   Net
actuarial loss</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">        2,588</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">               -</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">        2,588</font></td></tr>
<tr>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">             54</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">               -</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">             54</font></td>
<td style="padding-left: 6; vertical-align: middle; text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif">Payments
and amortization related to interest rate swaps included in earnings</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">           234</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">               -</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">           234</font></td></tr>
<tr style="background-color: #BFBFBF">
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">        2,211</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">               -</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">        2,211</font></td>
<td style="padding-left: 6; vertical-align: middle; text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif">Derivative
valuation adjustment</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">        7,926</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">               -</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">        7,926</font></td></tr>
<tr>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; padding-left: 6"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; padding-left: 6"><font style="font-family: Arial, Helvetica, Sans-Serif">Income taxes related
to items of other comprehensive income/(loss):</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="background-color: #BFBFBF">
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">           155</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">               -</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">           155</font></td>
<td style="vertical-align: middle; padding-left: 6"><font style="font-family: Arial, Helvetica, Sans-Serif">Pension/postretirement
curtailment</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">           155</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">               -</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">           155</font></td></tr>
<tr>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">            (53)</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">               -</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">            (53)</font></td>
<td style="padding-left: 6; vertical-align: middle; text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif">Amortization
of pension liability adjustment</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">          (108)</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">               -</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">          (108)</font></td></tr>
<tr style="background-color: #BFBFBF">
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">            (13)</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">               -</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">            (13)</font></td>
<td style="padding-left: 6; vertical-align: middle; text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif">Payments
related to interest rate swaps included in earnings</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">            (56)</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">               -</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">            (56)</font></td></tr>
<tr>
<td style="vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">          (530)</font></td>
<td style="vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">               -</font></td>
<td style="vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">          (530)</font></td>
<td style="padding-left: 6; vertical-align: middle; text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif">Derivative
valuation adjustment</font></td>
<td style="vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">       (1,902)</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">               -</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">       (1,902)</font></td></tr>
<tr style="background-color: #BFBFBF">
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">           939</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">          (563)</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">           376</font></td>
<td style="padding-left: 6; vertical-align: middle; text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif">Comprehensive
income</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">       33,534</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">       (2,118)</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">       31,416</font></td></tr>
<tr>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">            (48)</font></td>
<td style="vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">            (27)</font></td>
<td style="vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">            (75)</font></td>
<td style="vertical-align: middle; padding-left: 6"><font style="font-family: Arial, Helvetica, Sans-Serif">Comprehensive
income attributable to the noncontrolling interest</font></td>
<td style="vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">           182</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">            (84)</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">             98</font></td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$987</font></td>
<td style="border-bottom: Black 2pt double; text-align: right; border-top-color: Black; border-top-width: 0.5pt"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">($536)</font></td>
<td style="border-bottom: Black 2pt double; text-align: right; border-top-color: Black; border-top-width: 0.5pt"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$451</font></td>
<td style="font-family: Arial MT; padding-left: 6"><font style="font-family: Arial, Helvetica, Sans-Serif">Comprehensive income
attributable to the Company</font></td>
<td style="border-bottom: Black 2pt double; text-align: right; border-top-color: Black; border-top-width: 0.5pt"><font style="font-family: Arial, Helvetica, Sans-Serif">$33,352</font></td>
<td style="text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2pt double; text-align: right; border-top-color: Black; border-top-width: 0.5pt"><font style="font-family: Arial, Helvetica, Sans-Serif">($2,034)</font></td>
<td style="text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2pt double; text-align: right; border-top-color: Black; border-top-width: 0.5pt"><font style="font-family: Arial, Helvetica, Sans-Serif">$31,318</font></td></tr></table>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in; text-indent: 0in"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center">ALBANY INTERNATIONAL CORP.</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center">CONSOLIDATED BALANCE SHEET</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center">(in thousands, except share data)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center">(unaudited)</td></tr>
</table>
<p style="margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="text-align: left"> </td><td> </td>
<td colspan="2"></td><td> </td>
<td colspan="2"></td><td> </td>
<td colspan="2"></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left"> </td><td> </td>
<td colspan="2"></td><td> </td>
<td colspan="2"></td><td> </td>
<td colspan="2"></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="text-align: center; border-bottom: Black 1pt solid">As reported June 30, 2018</td><td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="text-align: center; border-bottom: Black 1pt solid">Adjustments to reverse effects of ASC 606</td><td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="text-align: center; border-bottom: Black 1pt solid">As adjusted for June 30, 2018 to exclude adoption of ASC 606</td></tr>
<tr style="vertical-align: bottom">
<td>ASSETS</td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 46%; text-align: left; background-color: silver">  Cash and cash equivalents</td><td style="text-align: left; background-color: silver; width: 5%"> </td>
<td style="width: 12%; text-align: right; background-color: silver">$154,744</td><td style="width: 1%; text-align: left; background-color: silver"> </td><td style="text-align: left; background-color: silver; width: 5%"> </td>
<td style="width: 12%; text-align: right; background-color: #BFBFBF">$-</td><td style="width: 1%; text-align: left; background-color: #BFBFBF"> </td><td style="text-align: left; background-color: silver; width: 5%"> </td>
<td style="width: 12%; text-align: right; background-color: silver">$154,744</td><td style="width: 1%; text-align: left; background-color: silver"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">  Accounts receivable, net</td><td> </td>
<td style="text-align: right">249,482</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">(4,286</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: right">245,196</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left">  Contract assets</td><td> </td>
<td style="text-align: right">59,244</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">(59,244</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td>  Inventories</td><td> </td>
<td style="text-align: right">97,659</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">51,736</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">149,395</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left">  Income taxes prepaid and receivable</td><td> </td>
<td style="text-align: right">6,087</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">6,087</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt">  Prepaid expenses and other current assets</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">19,559</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">19,559</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left">      Total current assets</td><td> </td>
<td style="text-align: right">586,775</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">(11,794</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: right">574,981</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">  Property, plant and equipment, net</td><td> </td>
<td style="text-align: right">450,694</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">450,694</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left">  Intangibles, net</td><td> </td>
<td style="text-align: right">52,322</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">52,322</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td>  Goodwill</td><td> </td>
<td style="text-align: right">165,474</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">165,474</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left">  Deferred income taxes</td><td> </td>
<td style="text-align: right">81,237</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">(648</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: right">80,589</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">  Noncurrent receivables</td><td> </td>
<td style="text-align: right">36,981</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">36,981</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left; padding-bottom: 1pt">  Other assets</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">48,978</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">(1,256</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">47,722</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2.5pt">      Total assets</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">$1,422,461</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">($13,698</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">$1,408,763</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-family: Arial MT; font-weight: bold; font-style: italic; text-align: right"> </td><td style="font-family: Arial MT; font-weight: bold; font-style: italic"> </td>
<td style="font-family: Arial MT; font-weight: bold; font-style: italic; text-align: right"> </td><td style="font-family: Arial MT; font-weight: bold; font-style: italic; text-align: left"> </td><td style="font-family: Arial MT; font-weight: bold; font-style: italic"> </td>
<td style="font-family: Arial MT; font-weight: bold; font-style: italic; text-align: right"> </td><td style="font-family: Arial MT; font-weight: bold; font-style: italic; text-align: left"> </td><td style="font-family: Arial MT; font-weight: bold; font-style: italic"> </td>
<td style="font-family: Arial MT; font-weight: bold; font-style: italic; text-align: right"> </td><td style="font-family: Arial MT; font-weight: bold; font-style: italic; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left">  Notes and loans payable</td><td> </td>
<td style="text-align: right">$26</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">$-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">$26</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">  Accounts payable</td><td> </td>
<td style="text-align: right">54,752</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">54,752</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left">  Accrued liabilities</td><td> </td>
<td style="text-align: right">125,255</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">(17,485</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: right">107,770</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">  Current maturities of long-term debt</td><td> </td>
<td style="text-align: right">1,844</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">1,844</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left; padding-bottom: 1pt">  Income taxes payable</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">14,620</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">14,620</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">      Total current liabilities</td><td> </td>
<td style="text-align: right">196,497</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">(17,485</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: right">179,012</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td>  Long-term debt</td><td> </td>
<td style="text-align: right">523,186</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">523,186</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">  Other noncurrent liabilities</td><td> </td>
<td style="text-align: right">97,563</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">97,563</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left; padding-bottom: 1pt">  Deferred taxes and other liabilities</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">13,556</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">(52</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">13,504</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt">      Total liabilities</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">830,802</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">(17,537</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">813,265</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">SHAREHOLDERS' EQUITY</td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td>  Preferred stock, par value $5.00 per share;</td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left">    authorized 2,000,000 shares; none issued</td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td>  Class A Common Stock, par value $.001 per share;</td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left"><p style="margin-top: 0; margin-bottom: 0; margin-left: 0pt">    authorized 100,000,000 shares; issued 37,447,819 in</p>
<p style="margin-top: 0; margin-bottom: 0; margin-left: 0pt">    2018 and 37,395,753 in 2017</p></td><td> </td>
<td style="text-align: right">37</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">37</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td>  Class B Common Stock, par value $.001 per share;</td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left">    authorized 25,000,000 shares; issued and</td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left">    outstanding 3,233,998 in 2018 and 2017</td><td> </td>
<td style="text-align: right">3</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">3</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">  Additional paid in capital</td><td> </td>
<td style="text-align: right">429,635</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">429,635</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left">  Retained earnings</td><td> </td>
<td style="text-align: right">558,639</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">$3,065</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">561,704</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">  Accumulated items of other comprehensive income:</td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left">    Translation adjustments</td><td> </td>
<td style="text-align: right">(102,888</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: right">531</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">(102,357</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">    Pension and postretirement liability adjustments</td><td> </td>
<td style="text-align: right">(48,422</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">(48,422</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left">    Derivative valuation adjustment</td><td> </td>
<td style="text-align: right">8,155</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">8,155</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">  Treasury stock (Class A), at cost 8,418,620 shares in 2018</td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt">   and 8,431,335 shares in 2017</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">(256,602</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">(256,602</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left">      Total Company shareholders' equity</td><td> </td>
<td style="text-align: right">588,557</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">3,596</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">592,153</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt">  Noncontrolling interest</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">3,102</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">243</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">3,345</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left; padding-bottom: 1pt"> Total equity</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">591,659</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">3,839</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">595,498</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2.5pt">      Total liabilities and shareholders' equity</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">$1,422,461</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">($13,698</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">$1,408,763</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The following tables show data by reportable segment,
reconciled to consolidated totals, and the impact that ASC 606 had on the three and six month periods ended June 30, 2018:</p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0in"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0in"></p>
<table border="0" cellpadding="0" cellspacing="0" align="center" style="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="width: 47%"> </td>
<td style="width: 17%"> </td>
<td style="font-weight: bold; width: 15%"> </td>
<td style="font-weight: bold; width: 1%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 20%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-top: Black 0.5pt solid"> </td>
<td colspan="2" style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">Three months ended June 30,</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center"> </td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">Three months ended <br />
June 30, 2018</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: justify">(in thousands)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; padding-left: 55pt">2018</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; padding-left: 55pt">2017</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">Increase/(decrease)<br />
attributable to application of ASC 606</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: justify">Net sales</td>
<td style="font-weight: bold"> </td>
<td> </td>
<td> </td>
<td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Machine Clothing</td>
<td style="font-weight: bold; text-align: right">$162,635</td>
<td style="text-align: right">$146,572</td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right">$857</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify">Albany Engineered Composites</td>
<td style="font-weight: bold; text-align: right">        93,590</td>
<td style="text-align: right">      68,999</td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right">             (1,257)</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify; border-top-color: Black; border-top-width: 0.5pt">Consolidated total</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$256,225</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$215,571</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right"> </td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">($400)</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: justify">Operating income/(loss)</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Machine Clothing </td>
<td style="font-weight: bold; text-align: right">$50,843</td>
<td style="text-align: right">$38,425</td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right">$1,786</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Albany Engineered Composites </td>
<td style="font-weight: bold; text-align: right">          4,092</td>
<td style="text-align: right">     (17,828)</td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right">                 123</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify">Corporate expenses</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">       (12,251)</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">     (10,742)</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Operating income </td>
<td style="font-weight: bold; text-align: right">$42,684</td>
<td style="text-align: right">$9,855</td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right">$1,909</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Reconciling items:</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">Interest income</td>
<td style="font-weight: bold; text-align: right">            (438)</td>
<td style="text-align: right">          (340)</td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right">                   -   </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">Interest expense</td>
<td style="font-weight: bold; text-align: right">          5,059</td>
<td style="text-align: right">        4,625</td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right">                   -   </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; border-bottom: Black 0.5pt solid; text-align: left">Other expense, net</td>
<td style="font-weight: bold; text-align: right">             726</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">        2,558</td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right">                   -   </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify">Income before income taxes</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$37,337</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">$3,012</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right"> </td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$1,909</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0in"></p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0in"></p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0in"></p>
<table border="0" cellpadding="0" cellspacing="0" align="center" style="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="width: 47%"> </td>
<td style="width: 17%"> </td>
<td style="font-weight: bold; width: 15%"> </td>
<td style="font-weight: bold; width: 1%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 20%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-top: Black 0.5pt solid"> </td>
<td colspan="2" style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">Six months ended June 30,</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center"> </td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">Six months ended <br />
June 30, 2018</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: justify">(in thousands)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; padding-left: 55pt">2018</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; padding-left: 44pt">2017</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">Increase/(decrease)<br />
attributable to application of ASC 606</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: justify">Net sales</td>
<td style="font-weight: bold"> </td>
<td> </td>
<td> </td>
<td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Machine Clothing</td>
<td style="font-weight: bold; text-align: right">$310,786</td>
<td style="text-align: right">$289,399</td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right">$5,068</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify">Albany Engineered Composites</td>
<td style="font-weight: bold; text-align: right">      175,420</td>
<td style="text-align: right">     125,449</td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right">              2,966</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify; border-top-color: Black; border-top-width: 0.5pt">Consolidated total</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$486,206</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$414,848</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right"> </td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$8,034</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: justify">Operating income/(loss)</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Machine Clothing </td>
<td style="font-weight: bold; text-align: right">$81,613</td>
<td style="text-align: right">$76,688</td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right">$2,765</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Albany Engineered Composites </td>
<td style="font-weight: bold; text-align: right">          6,366</td>
<td style="text-align: right">     (22,942)</td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right">                 992</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify">Corporate expenses</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">       (24,464)</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">     (21,213)</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">                   -   </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Operating income </td>
<td style="font-weight: bold; text-align: right">$63,515</td>
<td style="text-align: right">$32,533</td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right">$3,757</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Reconciling items:</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">Interest income</td>
<td style="font-weight: bold; text-align: right">            (820)</td>
<td style="text-align: right">          (447)</td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right">                   -   </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">Interest expense</td>
<td style="font-weight: bold; text-align: right">          9,729</td>
<td style="text-align: right">        9,060</td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right">                   -   </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; border-bottom: Black 0.5pt solid; text-align: left">Other expense, net</td>
<td style="font-weight: bold; text-align: right">          2,178</td>
<td style="text-align: right">        3,384</td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right">                   -   </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify">Income before income taxes</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$52,428</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$20,536</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right"> </td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$3,757</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt; text-indent: 0.5in">The table below presents restructuring
costs by reportable segment (also see Note 5):</p>
<table border="0" cellpadding="0" cellspacing="0" align="center" style="width: 75%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; border-bottom: Black 1pt solid; width: 45%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; border-bottom: Black 1pt solid; width: 15%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; border-bottom: Black 1pt solid; width: 12%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; border-bottom: Black 1pt solid; width: 14%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; border-bottom: Black 1pt solid; width: 14%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Three months ended June 30,</td>
<td colspan="2" style="font-weight: bold; text-align: center">Six months ended <br />
June 30,</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: justify">(in thousands)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2018</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2017</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2018</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2017</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Machine Clothing </td>
<td style="font-weight: bold; text-align: right">$1,800</td>
<td style="text-align: right">$805</td>
<td style="font-weight: bold; text-align: right">$10,152</td>
<td style="text-align: right">$916</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Albany Engineered Composites </td>
<td style="font-weight: bold; text-align: right">             558</td>
<td style="text-align: right">      1,231</td>
<td style="font-weight: bold; text-align: right">           779</td>
<td style="text-align: right">        3,801</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify">Corporate expenses</td>
<td style="font-weight: bold; text-align: right">             231</td>
<td style="text-align: right">           -   </td>
<td style="font-weight: bold; text-align: right">           231</td>
<td style="text-align: right">             -   </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid; text-align: justify"> <font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Total  </font></td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 1pt solid; text-align: right">$2,589</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 1pt solid; text-align: right">$2,036</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 1pt solid; text-align: right">$11,162</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 1pt solid; text-align: right">$4,717</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The composition of the net periodic
benefit plan cost for the six months ended June 30, 2018 and 2017, was as follows:</p>
<table border="0" cellpadding="0" cellspacing="0" align="center" style="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="font-size: 9pt; width: 36%"> </td>
<td style="font-size: 9pt; width: 11%"> </td>
<td style="font-weight: bold; width: 9%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 11%"> </td>
<td style="font-weight: bold; width: 9%"> </td></tr>
<tr>
<td style="font-weight: bold; vertical-align: bottom; border-top: Black 0.5pt solid"> </td>
<td colspan="2" style="font-weight: bold; vertical-align: middle; border-top: Black 0.5pt solid; text-align: center">Pension plans</td>
<td colspan="2" style="font-weight: bold; vertical-align: bottom; border-top: Black 0.5pt solid; text-align: center">Other postretirement benefits</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: justify">(in thousands)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2018</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2017</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2018</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2017</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Components of net periodic benefit cost:</td>
<td style="font-weight: bold"> </td>
<td> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Service cost</td>
<td style="font-weight: bold; text-align: right">$1,391</td>
<td style="text-align: right">$1,307</td>
<td style="font-weight: bold; text-align: right">$116</td>
<td style="text-align: right">$122</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Interest cost</td>
<td style="font-weight: bold; text-align: right">          3,621</td>
<td style="text-align: right">        3,671</td>
<td style="font-weight: bold; text-align: right">          1,013</td>
<td style="text-align: right">        1,107</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Expected return on assets</td>
<td style="font-weight: bold; text-align: right">         (4,470)</td>
<td style="text-align: right">       (4,003)</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right">               -</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Curtailment gain</td>
<td style="font-weight: bold; text-align: right">            (518)</td>
<td style="text-align: right">               -</td>
<td style="font-weight: bold; text-align: right">                 -</td>
<td style="text-align: right">               -</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Amortization of prior service cost/(credit)</td>
<td style="font-weight: bold; text-align: right">              17</td>
<td style="text-align: right">             18</td>
<td style="font-weight: bold; text-align: right">         (2,244)</td>
<td style="text-align: right">       (2,244)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Amortization of net actuarial loss</td>
<td style="font-weight: bold; text-align: right">          1,110</td>
<td style="text-align: right">        1,295</td>
<td style="font-weight: bold; text-align: right">          1,478</td>
<td style="text-align: right">        1,405</td></tr>
<tr style="vertical-align: bottom">
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: justify">Net periodic benefit cost</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$1,151</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$2,288</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$363</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$390</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in"><b>Effect by segment operating expenses:</b></p>
<table border="0" cellpadding="0" cellspacing="0" align="center" style="width: 87%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="font-weight: bold; width: 21%"> </td>
<td style="width: 27%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid">(in thousands) </td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid">Increase/(decrease) in expense for the six months ended June 30, 2017</td></tr>
<tr style="vertical-align: bottom">
<td>Machine Clothing</td>
<td style="text-align: right">($9)</td></tr>
<tr style="vertical-align: bottom">
<td>Albany Engineered Composites</td>
<td style="text-align: right">                                                          -   </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid">Corporate expenses</td>
<td style="text-align: right">                                                    (1,240)</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid">Total operating expenses</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 1pt solid; text-align: right">($1,249)</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid">Other expense, net</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">$1,249</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 0.25in; text-indent: 0.5in"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 0.25in; text-indent: 0.5in"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in"><b>Effect by Statement of Income line
item:</b></p>
<table border="0" cellpadding="0" cellspacing="0" align="center" style="width: 87%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 1pt solid; width: 21%"> </td>
<td style="border-bottom: Black 1pt solid; width: 27%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 0.5pt solid">(in thousands) </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid">Increase/(decrease) in expense for the six months ended June 30, 2017</td></tr>
<tr style="vertical-align: bottom">
<td>Cost of goods sold</td>
<td style="text-align: right">($247)</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid">Selling, general and administrative expenses </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">                                                    (1,002)</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid">Total operating expenses </td>
<td style="border-bottom: Black 1pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">($1,249)</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid">Other expense, net</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">$1,249</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 0.25in; text-indent: 0.5in"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The following table summarizes
charges reported in the Consolidated Statements of Income under “Restructuring expenses, net”:</p>
<table border="0" cellpadding="0" cellspacing="0" align="center" style="font: 10pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; border-bottom: Black 1pt solid; width: 52%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; border-bottom: Black 1pt solid; width: 13%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; border-bottom: Black 1pt solid; width: 11%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; border-bottom: Black 1pt solid; width: 12%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; border-bottom: Black 1pt solid; width: 12%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Three months ended June 30,</td>
<td colspan="2" style="font-weight: bold; text-align: center">Six months ended <br />
June 30,</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: justify">(in thousands)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2018</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2017</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2018</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2017</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Machine Clothing </td>
<td style="font-weight: bold; text-align: right">$1,800</td>
<td style="text-align: right">$805</td>
<td style="font-weight: bold; text-align: right">$10,152</td>
<td style="text-align: right">$916</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Albany Engineered Composites </td>
<td style="font-weight: bold; text-align: right">             558</td>
<td style="text-align: right">      1,231</td>
<td style="font-weight: bold; text-align: right">           779</td>
<td style="text-align: right">        3,801</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify">Corporate expenses</td>
<td style="font-weight: bold; text-align: right">             231</td>
<td style="text-align: right">           -   </td>
<td style="font-weight: bold; text-align: right">           231</td>
<td style="text-align: right">             -   </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid; text-align: justify"> <font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Total  </font></td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 1pt solid; text-align: right">$2,589</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 1pt solid; text-align: right">$2,036</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 1pt solid; text-align: right">$11,162</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 1pt solid; text-align: right">$4,717</td></tr>
</table>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0in"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 75%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 47%; border-bottom: Black 1pt solid"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 20%; border-bottom: Black 1pt solid"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 16%; border-bottom: Black 1pt solid"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 17%; border-bottom: Black 1pt solid"> </td></tr>
<tr>
<td style="font-weight: bold; vertical-align: top; text-align: left">Six months ended June 30, 2018</td>
<td style="font-weight: bold; vertical-align: top; text-align: center">Total <font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><b>restructuring costs incurred  </b></font></td>
<td style="font-weight: bold; vertical-align: top; text-align: center"> <font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><b>Termination and other costs  </b></font></td>
<td style="font-weight: bold; vertical-align: top; text-align: center">Impairment of  assets</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 1pt solid; text-align: justify">(in thousands)</td>
<td style="border-bottom: Black 1pt solid"> </td>
<td style="border-bottom: Black 1pt solid"> </td>
<td style="border-bottom: Black 1pt solid"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Machine Clothing </font></td>
<td style="text-align: right"> $10,152</td>
<td style="text-align: right"> $10,152</td>
<td style="text-align: right"> $-</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Albany Engineered Composites </td>
<td style="text-align: right">        779</td>
<td style="text-align: right">     779</td>
<td style="text-align: right">        -</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify">Corporate expenses</td>
<td style="text-align: right">        231</td>
<td style="text-align: right">     231</td>
<td style="text-align: right">        -</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Total  </font></td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right"> $11,162</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right"> $11,162</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right"> $-</td></tr>
</table>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0in"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 75%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: justify"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: justify"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: justify"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: justify"> </td>
</tr>
<tr>
<td style="white-space: nowrap; font-weight: bold; vertical-align: top; text-align: left; width: 47%">Six months ended June 30, 2017</td>
<td style="font-weight: bold; vertical-align: top; text-align: center; width: 20%">Total <font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><b>restructuring costs incurred  </b></font></td>
<td style="font-weight: bold; vertical-align: top; text-align: center; width: 16%"> <font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><b>Termination <br />
and other<br />
costs  </b></font></td>
<td style="font-weight: bold; vertical-align: top; text-align: center; width: 17%">Impairment<br />
of assets</td>
</tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: justify">(in thousands)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: justify"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: justify"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: justify"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Machine Clothing </font></td>
<td style="text-align: right"> $916</td>
<td style="text-align: right"> $916</td>
<td style="text-align: right"> $-</td>
</tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Albany Engineered Composites </td>
<td style="text-align: right">      3,801</td>
<td style="text-align: right">      3,356</td>
<td style="text-align: right">       445</td>
</tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify">Corporate expenses</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">         - </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">       - </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">         - </td>
</tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Total  </font></td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">$4,717</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">$4,272</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">$445</td>
</tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The table below presents the year-to-date changes in restructuring liabilities for 2018 and 2017,
all of which related to termination costs:</p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0in"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 33%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 13%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 13%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 13%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 13%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 15%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-top: Black 0.5pt solid"> </td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">December 31,</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">Restructuring</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center"> </td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">Currency</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">June 30, </td></tr>
<tr>
<td style="font-weight: bold; vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: justify">(in thousands)</td>
<td style="font-weight: bold; vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: center">2017</td>
<td style="font-weight: bold; vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: center">charges accrued</td>
<td style="font-weight: bold; vertical-align: top; border-bottom: Black 0.5pt solid; text-align: center">Payments</td>
<td style="font-weight: bold; vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: center">translation<br />
/other</td>
<td style="font-weight: bold; vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: center">2018</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify">Total termination and other costs</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">$3,326</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">$11,162</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">($5,323)</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">($378)</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right"> $8,787</td></tr>
</table>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0in"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in"><b></b></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 33%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 13%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 13%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 13%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 13%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 15%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-top: Black 0.5pt solid"> </td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">December 31,</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">Restructuring</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center"> </td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">Currency</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">June 30,</td></tr>
<tr>
<td style="font-weight: bold; vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: justify">(in thousands)</td>
<td style="font-weight: bold; vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: center">2016</td>
<td style="font-weight: bold; vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: center">charges accrued</td>
<td style="font-weight: bold; vertical-align: top; border-bottom: Black 0.5pt solid; text-align: center">Payments</td>
<td style="font-weight: bold; vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: center">translation<br />
/other</td>
<td style="font-weight: bold; vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: center">2017</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify">Total termination and other costs</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">$5,559</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">$4,272</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">($4,513)</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">$65</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right"> $5,383</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in">The components of Other expense,
net are:</p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 90%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 46%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 14%"> </td>
<td style="font: bold 11pt Calibri, Helvetica, Sans-Serif; width: 14%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 14%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 12%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-top: Black 0.5pt solid"> </td>
<td colspan="2" style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">Three months ended<br />
June 30,</td>
<td colspan="2" style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">Six months ended<br />
June 30,</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><b>(in thousands)  </b></font></td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2018</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2017</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2018</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2017</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Currency transaction (gains)/losses</td>
<td style="font-weight: bold; text-align: right">($9)</td>
<td style="text-align: right">$1,948</td>
<td style="font-weight: bold; text-align: right">$681</td>
<td style="text-align: right">$2,049</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Bank fees </td>
<td style="font-weight: bold; text-align: right">              96</td>
<td style="text-align: right">             111</td>
<td style="font-weight: bold; text-align: right">             204</td>
<td style="text-align: right">           259</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Components of net periodic pension and postretirement cost other than service</td>
<td style="font-weight: bold; text-align: right">             259</td>
<td style="text-align: right">             627</td>
<td style="font-weight: bold; text-align: right">             525</td>
<td style="text-align: right">        1,249</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Other  </font></td>
<td style="font-weight: bold; text-align: right">             380</td>
<td style="text-align: right">            (128)</td>
<td style="font-weight: bold; text-align: right">             768</td>
<td style="text-align: right">          (173)</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Total  </font></td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$726</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$2,558</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$2,178</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$3,384</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The following
table presents components of income tax expense for the three and six months ended June 30, 2018 and 2017:<b><i> </i></b></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom; background-color: white">
<td style="border-top: Black 0.5pt solid"> </td>
<td colspan="2" style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">Three months ended<br />
June 30,</td>
<td colspan="2" style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">Six months ended<br />
June 30,</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: justify; width: 58%">(in thousands)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 11%">2018</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 10%">2017</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 10%">2018</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; width: 11%">2017</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td>Income tax based on income from continuing operations, at estimated tax rates of 30.1% and 32.8%, respectively</td>
<td style="font-weight: bold; text-align: right">$11,239</td>
<td style="text-align: right">$989</td>
<td style="font-weight: bold; text-align: right">$15,779</td>
<td style="text-align: right">$6,744</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: Black 0.5pt solid">Provision for change in estimated tax rate</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">         (359)</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">           36</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">              -</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">                -</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify">Income tax before discrete items</td>
<td style="font-weight: bold; text-align: right">      10,880</td>
<td style="text-align: right">       1,025</td>
<td style="font-weight: bold; text-align: right">     15,779</td>
<td style="text-align: right">         6,744</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify">Discrete tax expense:</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify">     Exercise of US Stock Options</td>
<td style="font-weight: bold; text-align: right">             (3)</td>
<td style="text-align: right">              -</td>
<td style="font-weight: bold; text-align: right">(126)</td>
<td style="text-align: right">            (55)</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="text-align: justify">     Impact of mandatory repatriation</td>
<td style="font-weight: bold; text-align: right">       (1,099)</td>
<td style="text-align: right">              -</td>
<td style="font-weight: bold; text-align: right">(1,099)</td>
<td style="text-align: right">                -</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 18px; text-align: left">Adjustments to prior period tax liabilities</td>
<td style="font-weight: bold; text-align: right">         (206)</td>
<td style="text-align: right">         189</td>
<td style="font-weight: bold; text-align: right">         (252)</td>
<td style="text-align: right">           189</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 18px; text-align: left">Provision for/resolution of tax audits and contingencies, net</td>
<td style="font-weight: bold; text-align: right">        2,443</td>
<td style="text-align: right">         599</td>
<td style="font-weight: bold; text-align: right">       2,448</td>
<td style="text-align: right">         1,451</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 18px; text-align: left">Changes in valuation allowance</td>
<td style="font-weight: bold; text-align: right">       (4,986)</td>
<td style="text-align: right">              -</td>
<td style="font-weight: bold; text-align: right">      (4,986)</td>
<td style="text-align: right">                -</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="padding-left: 18px; border-bottom: Black 0.5pt solid; text-align: left">Other</td>
<td style="font-weight: bold; text-align: right">              2</td>
<td style="text-align: right">          (34)</td>
<td style="font-weight: bold; text-align: right">         (124)</td>
<td style="text-align: right">                -</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="border-bottom: Black 0.5pt solid; text-align: justify">Total income tax expense</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$7,031</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$1,779</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$11,640</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$8,329</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The amounts used in computing earnings
per share and the weighted average number of shares of potentially dilutive securities are as follows:</p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 56%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 11%"> </td>
<td style="font-weight: bold; width: 11%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 11%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 11%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-top: Black 0.5pt solid"> </td>
<td colspan="2" style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">Three months ended<br />
June 30,</td>
<td colspan="2" style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">Six months ended<br />
June 30,</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: left">(in thousands, except market price and earnings per share)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2018</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2017</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2018</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2017</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="font-weight: bold"> </td>
<td style="font-size: 8pt; font-weight: bold"> </td>
<td style="font-weight: bold"> </td>
<td style="font-size: 8pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify">Net income attributable to the Company</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">$30,365</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">$1,117</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">$40,610</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">$11,956</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="font-weight: bold"> </td>
<td> </td>
<td style="font-weight: bold"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: justify">Weighted average number of shares:</td>
<td style="font-weight: bold"> </td>
<td> </td>
<td style="font-weight: bold"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">Weighted average number of shares used in</td>
<td style="font-weight: bold"> </td>
<td> </td>
<td style="font-weight: bold"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">calculating basic net income per share</td>
<td style="font-weight: bold; text-align: right">      32,257</td>
<td style="text-align: right">      32,166</td>
<td style="font-weight: bold; text-align: right">      32,239</td>
<td style="text-align: right">      32,147</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: justify">Effect of dilutive stock-based compensation plans:</td>
<td style="font-weight: bold"> </td>
<td> </td>
<td style="font-weight: bold"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; border-bottom: Black 0.5pt solid; text-align: left">Stock options</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">             16</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">             34</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">             16</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">             35</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td>Weighted average number of shares used in</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid">calculating diluted net income per share</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">      32,273</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">      32,200</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">      32,255</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">      32,182</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Average market price of common stock used</td>
<td style="font-weight: bold"> </td>
<td> </td>
<td style="font-weight: bold"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify">for calculation of dilutive shares</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">$61.86</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">$48.44</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">$62.83</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">$47.47</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="font-weight: bold"> </td>
<td> </td>
<td style="font-weight: bold"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: left">Net income per share:</td>
<td style="font-weight: bold"> </td>
<td> </td>
<td style="font-weight: bold"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">Basic</td>
<td style="font-weight: bold; text-align: right">$0.94</td>
<td style="text-align: right">$0.03</td>
<td style="font-weight: bold; text-align: right">$1.26</td>
<td style="text-align: right">$0.37</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; border-bottom: Black 0.5pt solid; text-align: left">Diluted</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">$0.94</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">$0.03</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">$1.26</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">$0.37</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The table below presents changes
in the components of AOCI for the period December 31, 2017 to June 30, 2018:</p>
<table border="0" cellpadding="0" cellspacing="0" style="font: 10pt Arial, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 44%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 14%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 15%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 11%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 16%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: justify">(in thousands)</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">Translation adjustments</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">Pension and postretirement liability adjustments</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">Derivative valuation adjustment</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">Total Other Comprehensive Income</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: justify; border-top-color: Black; border-top-width: 0.5pt">December 31, 2017</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">($87,318)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">($50,536)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">$1,953</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">($135,901)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Other comprehensive income/(loss) before reclassifications</td>
<td style="text-align: right">           (15,570)</td>
<td style="text-align: right">              2,224</td>
<td style="text-align: right">         6,024</td>
<td style="text-align: right">               (7,322)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Pension/postretirement curtailment gain, net of tax</td>
<td style="text-align: right"> </td>
<td style="text-align: right">                (363)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">                  (363)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Interest expense related to swaps reclassified to the Consolidated Statements of Income, net of tax</td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right">           178</td>
<td style="text-align: right">                   178</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: left">Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income, net of tax</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">                 253</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">                   253</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: left; border-top-color: Black; border-top-width: 0.5pt">Net current period other comprehensive income</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">           (15,570)</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">              2,114</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">         6,202</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">               (7,254)</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: justify">June 30, 2018</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">($102,888)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">($48,422)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">$8,155</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">($143,155)</td></tr>
</table>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt; text-indent: 0.5in"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The table below presents changes
in the components of AOCI for the period December 31, 2016 to June 30, 2017:</p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt; text-indent: 0in"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 44%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 14%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 15%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 11%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 16%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: justify">(in thousands)</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">Translation adjustments</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">Pension and postretirement liability adjustments</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">Derivative valuation adjustment</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">Total Other Comprehensive Income</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: justify; border-top-color: Black; border-top-width: 0.5pt">December 31, 2016</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">($133,298)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">($51,719)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">$828</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">($184,189)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Other comprehensive income/(loss) before reclassifications</td>
<td style="text-align: right">            28,453</td>
<td style="text-align: right">             (1,079)</td>
<td style="text-align: right">          (619)</td>
<td style="text-align: right">              26,755</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Interest expense related to swaps reclassified to the Consolidated Statements of Income, net of tax</td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right">           585</td>
<td style="text-align: right">                   585</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: left">Pension and postretirement liability adjustments reclassified to Consolidated Statements of Income, net of tax</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">                 332</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">                   332</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: left; border-top-color: Black; border-top-width: 0.5pt">Net current period other comprehensive income</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">            28,453</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">                (747)</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">            (34)</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">              27,672</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: justify">June 30, 2017</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">($104,845)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">($52,466)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">$794</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">($156,517)</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The table below presents the expense/(income)
amounts reclassified, and the line items of the Consolidated Statements of Income that were affected for the periods ended June
30, 2018 and 2017.</p>
<table border="0" cellpadding="0" cellspacing="0" align="center" style="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="width: 61%"> </td>
<td style="width: 10%"> </td>
<td style="width: 9%"> </td>
<td style="width: 11%"> </td>
<td style="width: 9%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-top: Black 0.5pt solid"> </td>
<td colspan="2" style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">Three months ended June 30, </td>
<td colspan="2" style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">Six months ended <br />
June 30, </td></tr>
<tr>
<td style="font-weight: bold; vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: justify">(in thousands)</td>
<td style="font-weight: bold; vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: center">2018</td>
<td style="font-weight: bold; vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: center">2017</td>
<td style="font-weight: bold; vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: center">2018</td>
<td style="font-weight: bold; vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: center">2017</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: left">Pretax Derivative valuation reclassified from Accumulated Other Comprehensive Income:</td>
<td style="font-weight: bold"> </td>
<td> </td>
<td style="font-weight: bold"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">Expense related to interest rate swaps included in Income <br />
before taxes (a)</td>
<td style="font-weight: bold; text-align: right">$54</td>
<td style="text-align: right">$343</td>
<td style="font-weight: bold; text-align: right">$234</td>
<td style="text-align: right">$943</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">Income tax effect</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">(13)</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">(130)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">(56)</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">(358)</td></tr>
<tr style="vertical-align: bottom">
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: left">Effect on net income due to items reclassified from Accumulated Other Comprehensive Income</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">$41</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">$213</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">$178</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">$585</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold">Pretax pension and postretirement liabilities reclassified from Accumulated Other Comprehensive Income:</td>
<td style="font-weight: bold"> </td>
<td style="font-weight: bold"> </td>
<td style="font-weight: bold"> </td>
<td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">Pension/postretirement curtailment</td>
<td style="font-weight: bold; text-align: right">($518)</td>
<td style="text-align: right"> $-   </td>
<td style="font-weight: bold; text-align: right">($518)</td>
<td style="text-align: right"> $-   </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">Amortization of prior service credit (b)</td>
<td style="font-weight: bold; text-align: right">       (1,113)</td>
<td style="text-align: right">    (1,113)</td>
<td style="font-weight: bold; text-align: right">        (2,227)</td>
<td style="text-align: right">     (2,226)</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">Amortization of net actuarial loss (b)</td>
<td style="font-weight: bold; text-align: right">        1,291</td>
<td style="text-align: right">     1,353</td>
<td style="font-weight: bold; text-align: right">         2,588</td>
<td style="text-align: right">      2,700</td></tr>
<tr style="vertical-align: bottom">
<td style="border-top: Black 0.5pt solid; text-align: justify">Total pretax amount reclassified</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; text-align: right">(340)</td>
<td style="border-top: Black 0.5pt solid; text-align: right">240</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; text-align: right">(157)</td>
<td style="border-top: Black 0.5pt solid; text-align: right">474</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Income tax effect</td>
<td style="font-weight: bold; text-align: right">102</td>
<td style="text-align: right">(72)</td>
<td style="font-weight: bold; text-align: right">47</td>
<td style="text-align: right">(142)</td></tr>
<tr style="vertical-align: bottom">
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: left">Effect on net income due to items reclassified from Accumulated Other Comprehensive Income</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">($238)</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$168</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">($110)</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$332</td></tr>
</table>
<p style="margin-top: 0; margin-bottom: 0"> </p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt 0.5in; text-indent: 0in"></p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(a)</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif">Included in Interest expense are payments related to the interest rate
swap agreements and amortization of swap buyouts (see Note 16).</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 10pt"><tr style="vertical-align: top">
<td style="width: 0.5in"></td><td style="width: 0.25in"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(b)</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif">These accumulated other comprehensive income components are included
in Other expense, net (see Note 4). The curtailment adjustment was included in restructuring expenses, net.</font></td></tr></table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">As of June 30, 2018 and December
31, 2017, Accounts receivable consisted of the following:</p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 66%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 17%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 17%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 1pt solid; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><b>(in thousands)  </b></font></td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 1pt solid; text-align: center">June 30,<br />
 2018</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 1pt solid; text-align: center">December 31,<br />
 2017</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Trade and other accounts receivable</td>
<td style="font-weight: bold; text-align: right">$238,763</td>
<td style="text-align: right">$152,375</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Bank promissory notes</td>
<td style="font-weight: bold; text-align: right">18,070</td>
<td style="text-align: right">20,255</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Revenue in excess of progress billings</td>
<td style="font-weight: bold; text-align: right">                      -</td>
<td style="text-align: right">37,964</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify">Allowance for doubtful accounts</td>
<td style="font-weight: bold; text-align: right">              (7,351)</td>
<td style="text-align: right">              (7,919)</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify; border-top-color: Black; border-top-width: 0.5pt">Total accounts receivable</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$249,482</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$202,675</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">As of June 30, 2018 and December
31, 2017, Noncurrent receivables consisted of the following:</p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 66%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 17%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 17%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font: bold 10pt Arial, Helvetica, Sans-Serif; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><b>(in thousands)  </b></font></td>
<td style="font: bold 10pt Arial, Helvetica, Sans-Serif; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">June 30,<br />
 2018</td>
<td style="font: bold 10pt Arial, Helvetica, Sans-Serif; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">December 31,<br />
 2017</td></tr>
<tr style="vertical-align: bottom">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; border-bottom: Black 0.5pt solid; text-align: justify; border-top-color: Black; border-top-width: 0.5pt">Noncurrent receivables</td>
<td style="font: bold 10pt Arial, Helvetica, Sans-Serif; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">$36,981</td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">$32,811</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">Contract assets and contract liabilities were as follows:</p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 66%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 17%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 17%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font: bold 10pt Arial, Helvetica, Sans-Serif; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><b>(in thousands)  </b></font></td>
<td style="font: bold 10pt Arial, Helvetica, Sans-Serif; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">June 30,<br />
 2018</td>
<td style="font: bold 10pt Arial, Helvetica, Sans-Serif; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">December 31,<br />
 2017</td></tr>
<tr style="vertical-align: bottom">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; border-bottom: Black 0.5pt solid; text-align: justify; border-top-color: Black; border-top-width: 0.5pt">Contract assets</td>
<td style="font: bold 10pt Arial, Helvetica, Sans-Serif; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">$59,244</td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">$  -</td></tr>
<tr style="vertical-align: bottom">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; border-bottom: Black 0.5pt solid; text-align: justify; border-top-color: Black; border-top-width: 0.5pt">Contract liabilities</td>
<td style="font: bold 10pt Arial, Helvetica, Sans-Serif; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">4,220</td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">-</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">As of June 30, 2018 and December
31, 2017, inventories consisted of the following:</p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 90%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 67%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 14%"> </td>
<td style="font: bold 11pt Calibri, Helvetica, Sans-Serif; width: 19%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><b>(in thousands)  </b></font></td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">June 30,  2018</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">December 31, 2017</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Raw materials</td>
<td style="font-weight: bold; text-align: right">$39,822</td>
<td style="text-align: right">$42,215</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Work in process</td>
<td style="font-weight: bold; text-align: right">      44,526</td>
<td style="text-align: right">              65,448</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Finished goods</td>
<td style="font-weight: bold; text-align: right">      13,311</td>
<td style="text-align: right">              28,856</td></tr>
<tr style="vertical-align: bottom">
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: justify">Total inventories</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$97,659</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$136,519</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">Estimated amortization expense of
intangibles for the years ending December 31, 2018 through 2022, is as follows:</p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 40%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif; margin-left: 0.5in">
<tr style="vertical-align: bottom">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 44%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 56%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center"> </td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; text-align: right">Annual amortization</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">Year</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">(in thousands)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center">2018</td>
<td style="text-align: right">$6,234</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center">2019</td>
<td style="text-align: right">                        6,234</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center">2020</td>
<td style="text-align: right">                        6,234</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center">2021</td>
<td style="text-align: right">                        6,163</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: center">2022</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">                        3,949</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The gross carrying
value, accumulated amortization and net values of intangible assets and goodwill as of June 30, 2018 and December 31, 2017, were
as follows:</p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="width: 35%"> </td>
<td style="width: 20%"> </td>
<td style="width: 12%"> </td>
<td style="width: 18%"> </td>
<td style="width: 15%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid">As of June 30, 2018<br />
(in thousands)</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center"> Weighted average amortization life in years</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">Gross carrying amount</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">Accumulated amortization</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">Net carrying amount</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Amortized intangible assets:</td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">AEC trade names</td>
<td style="text-align: center">15</td>
<td style="text-align: right">$140</td>
<td style="text-align: right">($127)</td>
<td style="text-align: right">$13</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">AEC technology</td>
<td style="text-align: center">15</td>
<td style="text-align: right">370</td>
<td style="text-align: right">(302)</td>
<td style="text-align: right">68</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">Customer relationships</td>
<td style="text-align: center">15</td>
<td style="text-align: right">        48,421</td>
<td style="text-align: right">(7,269)</td>
<td style="text-align: right">41,152</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">Customer contracts</td>
<td style="text-align: center">6</td>
<td style="text-align: right">        17,471</td>
<td style="text-align: right">(6,559)</td>
<td style="text-align: right">10,912</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; border-bottom: Black 0.5pt solid; text-align: left">Other intangibles</td>
<td style="text-align: center">5</td>
<td style="text-align: right">            322</td>
<td style="text-align: right">(145)</td>
<td style="text-align: right">177</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify; border-top-color: Black; border-top-width: 0.5pt">Net amortized intangible assets</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: justify"> </td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$66,724</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">($14,402)</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$52,322</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td style="text-align: right">       </td>
<td style="text-align: right">       </td>
<td style="text-align: right">       </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Unamortized intangible assets:</td>
<td style="text-align: justify"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">MC Goodwill</td>
<td style="padding-left: 18px; text-align: left"> </td>
<td style="text-align: right">$69,744</td>
<td style="text-align: right"> $-</td>
<td style="text-align: right">$69,744</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; border-bottom: Black 0.5pt solid; text-align: left">AEC Goodwill</td>
<td style="padding-left: 18px; border-bottom: Black 0.5pt solid; text-align: left"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">        95,730</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">                          -</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">             95,730</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; border-top-color: Black; border-top-width: 0.5pt">Total unamortized intangible assets:</td>
<td style="border-bottom: Black 0.5pt solid; border-top-color: Black; border-top-width: 0.5pt"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">$165,474</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right"> $-</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">$165,474</td></tr>
</table>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in; text-indent: 0in"></p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in; text-indent: 0in"> </p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in; text-indent: 0in"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 90%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="width: 35%"> </td>
<td style="width: 20%"> </td>
<td style="width: 12%"> </td>
<td style="width: 18%"> </td>
<td style="width: 15%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid">As of December 31, 2017<br />
(in thousands)</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">Weighted average amortization life in years</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">Gross carrying amount</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">Accumulated amortization</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">Net carrying amount</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Amortized intangible assets:</td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">AEC trade names</td>
<td style="text-align: center">15</td>
<td style="text-align: right">$140</td>
<td style="text-align: right">($125)</td>
<td style="text-align: right">$15</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">AEC technology</td>
<td style="text-align: center">15</td>
<td style="text-align: right">370</td>
<td style="text-align: right">(290)</td>
<td style="text-align: right">                   80</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">Customer relationships</td>
<td style="text-align: center">15</td>
<td style="text-align: right">        48,421</td>
<td style="text-align: right">(5,654)</td>
<td style="text-align: right">             42,767</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">Customer contracts</td>
<td style="text-align: center">6</td>
<td style="text-align: right">        17,471</td>
<td style="text-align: right">(5,102)</td>
<td style="text-align: right">             12,369</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; border-bottom: Black 0.5pt solid; text-align: left">Other intangibles</td>
<td style="text-align: center">5</td>
<td style="text-align: right">            322</td>
<td style="text-align: right">(112)</td>
<td style="text-align: right">                  210</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify; border-top-color: Black; border-top-width: 0.5pt">Net amortized intangible assets</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: justify"> </td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$66,724</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">($11,283)</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$55,441</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td style="text-align: right">       </td>
<td style="text-align: right">       </td>
<td style="text-align: right">       </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Unamortized intangible assets:</td>
<td style="text-align: justify"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">MC Goodwill</td>
<td style="padding-left: 18px; text-align: left"> </td>
<td style="text-align: right">$71,066</td>
<td style="text-align: right"> $-</td>
<td style="text-align: right">$71,066</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; border-bottom: Black 0.5pt solid; text-align: left">AEC Goodwill</td>
<td style="padding-left: 18px; border-bottom: Black 0.5pt solid; text-align: left"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">        95,730</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">                          -</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">             95,730</td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid">Total unamortized intangible assets:</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">$166,796</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right"> $-</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">$166,796</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 0.5in; text-indent: 0in"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The changes in intangible assets,
net and goodwill from December 31, 2017 to June 30, 2018, were as follows:</p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 90%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="width: 37%"> </td>
<td style="width: 16%"> </td>
<td style="width: 17%"> </td>
<td style="width: 15%"> </td>
<td style="width: 15%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: justify">(in thousands)</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">December
<br />
31, 2017</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">Amortization</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">Currency Translation</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">June 30,
2018</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Amortized intangible assets:</td>
<td> </td>
<td> </td>
<td> </td>
<td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">AEC trade names</td>
<td style="text-align: right">$15</td>
<td style="text-align: right"> $(2)</td>
<td style="text-align: right"> $-</td>
<td style="font-weight: bold; text-align: right">$13</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">AEC technology</td>
<td style="text-align: right">80</td>
<td style="text-align: right">(12)</td>
<td style="text-align: right">                     -</td>
<td style="font-weight: bold; text-align: right">68</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">Customer relationships</td>
<td style="text-align: right">             42,767</td>
<td style="text-align: right">(1,615)</td>
<td style="text-align: right">                     -</td>
<td style="font-weight: bold; text-align: right">41,152</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">Customer contracts</td>
<td style="text-align: right">             12,369</td>
<td style="text-align: right">(1,457)</td>
<td style="text-align: right">                     -</td>
<td style="font-weight: bold; text-align: right">10,912</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; border-bottom: Black 0.5pt solid; text-align: left">Other intangibles</td>
<td style="text-align: right">                  210</td>
<td style="text-align: right">(33)</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">                     -</td>
<td style="font-weight: bold; text-align: right">177</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify; border-top-color: Black; border-top-width: 0.5pt">Net amortized intangible assets</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$55,441</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">($3,119)</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right"> $-</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$52,322</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="text-align: right">       </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right">       </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Unamortized intangible assets:</td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">MC Goodwill</td>
<td style="text-align: right">$71,066</td>
<td style="text-align: right"> $-</td>
<td style="text-align: right"> $(1,322)</td>
<td style="font-weight: bold; text-align: right">$69,744</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; border-bottom: Black 0.5pt solid; text-align: left">AEC Goodwill</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">             95,730</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">                       -</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">                     -</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">95,730</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; border-top-color: Black; border-top-width: 0.5pt">Total unamortized intangible assets:</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">$166,796</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right"> $-</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right"> $(1,322)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">$165,474</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">Long-term debt, principally to
banks and bondholders, consists of:</p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 90%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif; margin-left: 0.5in">
<tr style="vertical-align: bottom">
<td style="width: 65%"> </td>
<td style="width: 12%"> </td>
<td style="width: 19%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid">(in thousands, except interest rates)</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center"> June 30, 2018</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">December 31, 2017</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td>Revolving credit agreement with borrowings outstanding at an end of period interest rate of 3.58% in 2018 and 3.40% in 2017 (including the effect of interest rate hedging transactions, as described below), due in 2022</td>
<td style="font-weight: bold; text-align: right">$511,000</td>
<td style="text-align: right">$501,000</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: left">Obligation under capital lease, matures 2022                  </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">14,030</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">            14,919</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Long-term debt</td>
<td style="font-weight: bold; text-align: right">525,030</td>
<td style="text-align: right">515,919</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid">Less: current portion</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">(1,844)</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">(1,799)</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: left">Long-term debt, net of current portion</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">$523,186</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">$514,120</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The following schedule presents
future minimum annual lease payments under the capital lease obligation and the present value of the minimum lease payments, as
of June 30, 2018.</p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 65%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif; margin-left: 0.5in">
<tr style="vertical-align: bottom">
<td style="width: 59%"> </td>
<td style="width: 27%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid">Years ending December 31,</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">(in thousands)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">2018</td>
<td style="font-weight: bold; text-align: right">$1,236</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">2019</td>
<td style="font-weight: bold; text-align: right">2,473</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">2020</td>
<td style="font-weight: bold; text-align: right">2,520</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">2021</td>
<td style="font-weight: bold; text-align: right">2,520</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: left">2022</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">7,373</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Total minimum lease payments</td>
<td style="font-weight: bold; text-align: right">16,122</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid">Less:  Amount representing interest</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">(2,092)</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="font-weight: bold; text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 2pt double; text-align: left">Present value of minimum lease payments</td>
<td style="font-weight: bold; border-bottom: Black 2pt double; text-align: right">$14,030</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 12pt 0 0; text-indent: 0.5in">Gains/(losses) related to changes
in fair value of derivative instruments that were recognized in Other expense, net in the Consolidated Statements of Income were
as follows:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0.75in; text-indent: 0in"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="width: 56%"> </td>
<td style="width: 15%"> </td>
<td style="width: 9%"> </td>
<td style="width: 12%"> </td>
<td style="width: 8%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-top: Black 0.5pt solid"> </td>
<td colspan="2" style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">Three months ended   June  30,</td>
<td colspan="2" style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">Six months ended   June 30,</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: justify">(in thousands)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2018</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2017</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2018</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2017</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Derivatives not designated as hedging instruments</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; border-bottom: Black 0.5pt solid; text-align: left">Foreign currency options losses</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">($34)</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">($75)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">($71)</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">($129)</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The following table sets forth the
number of claims filed, the number of claims settled, dismissed or otherwise resolved, and the aggregate settlement amount during
the periods presented:</p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="font-weight: bold; width: 26%"></td>
<td style="font-weight: bold; width: 15%"></td>
<td style="font-weight: bold; width: 14%"></td>
<td style="font-weight: bold; width: 15%"></td>
<td style="font-weight: bold; width: 15%"></td>
<td style="font-weight: bold; width: 15%"></td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-top: Black 1pt solid; border-right: Black 0.5pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; text-align: center">Year ended December 31,</td>
<td style="font-weight: bold; border-top: Black 1pt solid; border-right: Black 0.5pt solid; border-bottom: Black 1pt solid; text-align: center; border-left-color: Black; border-left-width: 0.5pt">Opening Number of Claims</td>
<td style="font-weight: bold; border-top: Black 1pt solid; border-right: Black 0.5pt solid; border-bottom: Black 1pt solid; text-align: center; border-left-color: Black; border-left-width: 0.5pt">Claims Dismissed,Settled, or Resolved</td>
<td style="font-weight: bold; border-top: Black 1pt solid; border-right: Black 0.5pt solid; border-bottom: Black 1pt solid; text-align: center; border-left-color: Black; border-left-width: 0.5pt">New Claims</td>
<td style="font-weight: bold; border-top: Black 1pt solid; border-right: Black 0.5pt solid; border-bottom: Black 1pt solid; text-align: center; border-left-color: Black; border-left-width: 0.5pt">Closing Number of Claims</td>
<td style="font-weight: bold; border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; border-left-color: Black; border-left-width: 0.5pt">Amounts Paid (thousands) to Settle or Resolve</td></tr>
<tr style="vertical-align: middle">
<td style="border: Black 0.5pt solid; text-align: right; padding-right: 3pt">2013</td>
<td style="border-top: Black 0.5pt solid; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt; padding-right: 3pt">4,463</td>
<td style="border-top: Black 0.5pt solid; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt; padding-right: 3pt">230</td>
<td style="border-top: Black 0.5pt solid; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt; padding-right: 3pt">66</td>
<td style="border-top: Black 0.5pt solid; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt; padding-right: 3pt">4,299</td>
<td style="border-top: Black 0.5pt solid; border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-left-color: Black; border-left-width: 0.5pt; padding-right: 3pt">$78</td></tr>
<tr style="vertical-align: middle">
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; border-top-color: Black; border-top-width: 0.5pt; text-align: right; padding-right: 3pt">2014</td>
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt; padding-right: 3pt">4,299</td>
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt; padding-right: 3pt">625</td>
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt; padding-right: 3pt">147</td>
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt; padding-right: 3pt">3,821</td>
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt; padding-right: 3pt">437</td></tr>
<tr style="vertical-align: middle">
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; border-top-color: Black; border-top-width: 0.5pt; text-align: right; padding-right: 3pt">2015</td>
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt; padding-right: 3pt">3,821</td>
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt; padding-right: 3pt">116</td>
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt; padding-right: 3pt">86</td>
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt; padding-right: 3pt">3,791</td>
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt; padding-right: 3pt">164</td></tr>
<tr style="vertical-align: middle">
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; border-top-color: Black; border-top-width: 0.5pt; text-align: right; padding-right: 3pt">2016</td>
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt; padding-right: 3pt">3,791</td>
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt; padding-right: 3pt">148</td>
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt; padding-right: 3pt">102</td>
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt; padding-right: 3pt">3,745</td>
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt; padding-right: 3pt">758</td></tr>
<tr style="vertical-align: middle">
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; border-left: Black 0.5pt solid; border-top-color: Black; border-top-width: 0.5pt; text-align: right; padding-right: 3pt">2017</td>
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt; padding-right: 3pt">3,745</td>
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt; padding-right: 3pt">105</td>
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt; padding-right: 3pt">90</td>
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt; padding-right: 3pt">3,730</td>
<td style="border-right: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-left-color: Black; border-top-width: 0.5pt; border-left-width: 0.5pt; padding-right: 3pt">55</td></tr>
<tr style="vertical-align: middle">
<td style="font-size: 9pt; font-weight: bold; border: Black 1pt solid; padding-right: 3pt">2018 (as of June 30)</td>
<td style="font-weight: bold; border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; padding-right: 3pt">3,730</td>
<td style="font-weight: bold; border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; padding-right: 3pt">105</td>
<td style="font-weight: bold; border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; padding-right: 3pt">52</td>
<td style="font-weight: bold; border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; padding-right: 3pt">3,677</td>
<td style="font-weight: bold; border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; padding-right: 3pt">$93</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 12pt 0 0 0.5in; text-indent: 0.5in">The following table summarizes changes
in Shareholders’ Equity:</p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0in"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif"> </td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: 11pt Calibri, Helvetica, Sans-Serif"></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: 11pt Calibri, Helvetica, Sans-Serif"></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: 11pt Calibri, Helvetica, Sans-Serif"></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: 11pt Calibri, Helvetica, Sans-Serif"></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: 11pt Calibri, Helvetica, Sans-Serif"></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: 11pt Calibri, Helvetica, Sans-Serif"></td><td style="font: 11pt Calibri, Helvetica, Sans-Serif; padding-bottom: 1pt"> </td>
<td colspan="2" style="font: 11pt Calibri, Helvetica, Sans-Serif"></td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: justify; border-top: Black 1pt solid; border-bottom: Black 1pt solid">(in thousands)</td><td style="font-weight: bold; padding-bottom: 1pt; border-top: Black 1pt solid; border-bottom: Black 1pt solid"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-top: Black 1pt solid; border-bottom: Black 1pt solid">Common Stock Class<br />  A and B</td><td style="font-weight: bold; padding-bottom: 1pt; border-top: Black 1pt solid; border-bottom: Black 1pt solid"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-top: Black 1pt solid; border-bottom: Black 1pt solid">Additional paid in capital</td><td style="font-weight: bold; padding-bottom: 1pt; border-top: Black 1pt solid; border-bottom: Black 1pt solid"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-top: Black 1pt solid; border-bottom: Black 1pt solid">Retained earnings</td><td style="font-weight: bold; padding-bottom: 1pt; border-top: Black 1pt solid; border-bottom: Black 1pt solid"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-top: Black 1pt solid; border-bottom: Black 1pt solid">Accumulated items of other comprehensive income/(loss)</td><td style="font-weight: bold; padding-bottom: 1pt; border-top: Black 1pt solid; border-bottom: Black 1pt solid"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-top: Black 1pt solid; border-bottom: Black 1pt solid">Treasury stock</td><td style="font-weight: bold; padding-bottom: 1pt; border-top: Black 1pt solid; border-bottom: Black 1pt solid"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-top: Black 1pt solid; border-bottom: Black 1pt solid">Noncontrolling Interest</td><td style="font-weight: bold; padding-bottom: 1pt; border-top: Black 1pt solid; border-bottom: Black 1pt solid"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-top: Black 1pt solid; border-bottom: Black 1pt solid">Total Equity</td></tr>
<tr style="vertical-align: bottom">
<td style="width: 37%; font-weight: bold; text-align: justify">December 31, 2017</td><td style="width: 2%; font-weight: bold"> </td>
<td style="width: 6%; font-weight: bold; text-align: right">$40</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td>
<td style="width: 6%; font-weight: bold; text-align: right">$428,423</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td>
<td style="width: 6%; font-weight: bold; text-align: right">$534,082</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td>
<td style="width: 6%; font-weight: bold; text-align: right">($135,901</td><td style="width: 1%; font-weight: bold; text-align: left">)</td><td style="width: 2%; font-weight: bold"> </td>
<td style="width: 6%; font-weight: bold; text-align: right">($256,876</td><td style="width: 1%; font-weight: bold; text-align: left">)</td><td style="width: 2%; font-weight: bold"> </td>
<td style="width: 6%; font-weight: bold; text-align: right">$3,247</td><td style="width: 1%; font-weight: bold; text-align: left"> </td><td style="width: 2%; font-weight: bold"> </td>
<td style="width: 6%; font-weight: bold; text-align: right">$573,015</td><td style="width: 1%; font-weight: bold; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Adoption of accounting standards (a),(b)</td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">(5,085</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">(327</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: right">(5,412</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Net income</td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">40,610</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">178</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">40,788</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Compensation and benefits paid or payable in shares</td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">1,062</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">274</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">1,336</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Options exercised</td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">150</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">150</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Dividends declared</td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">(10,968</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">(10,968</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Cumulative translation adjustments</td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">(15,570</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">4</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">(15,566</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Pension and postretirement liability adjustments</td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">2,114</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">2,114</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt">Derivative valuation adjustment</td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: right">6,202</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="text-align: right">6,202</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: justify; padding-bottom: 1pt; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><b>June 30, 2018</b></td><td style="font-weight: bold; padding-bottom: 1pt; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><b> </b></td>
<td style="font-weight: bold; text-align: right; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><b>$40</b></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><b> </b></td><td style="font-weight: bold; padding-bottom: 1pt; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><b> </b></td>
<td style="font-weight: bold; text-align: right; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><b>$429,635</b></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><b> </b></td><td style="font-weight: bold; padding-bottom: 1pt; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><b> </b></td>
<td style="font-weight: bold; text-align: right; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><b>$558,639</b></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><b> </b></td><td style="font-weight: bold; padding-bottom: 1pt; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><b> </b></td>
<td style="font-weight: bold; text-align: right; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><b>($143,155</b></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><b>)</b></td><td style="font-weight: bold; padding-bottom: 1pt; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><b> </b></td>
<td style="font-weight: bold; text-align: right; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><b>($256,602</b></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><b>)</b></td><td style="font-weight: bold; padding-bottom: 1pt; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><b> </b></td>
<td style="font-weight: bold; text-align: right; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><b>$3,102</b></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><b> </b></td><td style="font-weight: bold; padding-bottom: 1pt; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><b> </b></td>
<td style="font-weight: bold; text-align: right; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><b>$591,659</b></td><td style="padding-bottom: 1pt; font-weight: bold; text-align: left; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><b> </b></td></tr>
</table>
<p style="margin-top: 0; margin-bottom: 0"> </p>
<table cellpadding="0" cellspacing="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 4pt"><tr style="vertical-align: top">
<td style="width: 0"></td><td style="width: 22pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(a)</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif">As
described in Note 2, the Company adopted ASC 606 effective January 1, 2018, which resulted in a decrease to Retained earnings
of $5.6 million and a $0.3 million decrease to Noncontrolling interest.</font></td>
</tr></table>
<table cellpadding="0" cellspacing="0" style="font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 4pt"><tr style="vertical-align: top">
<td style="width: 0"></td><td style="width: 22pt; text-align: left"><font style="font: 10pt Arial, Helvetica, Sans-Serif">(b)</font></td><td><font style="font: 10pt Arial, Helvetica, Sans-Serif">As
described in Note 7, the Company adopted ASU 2016-16 effective January 1, 2018, which resulted in a $0.5 increase to Retained
earnings.</font></td></tr></table>
-363000
-363000
-1099000
-1099000
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0in"><b><i>2. Revenue Recognition</i></b></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0in"><b><i> </i></b></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">Effective January 1, 2018, the Company
adopted the provisions of ASC 606, <i>Revenue from contracts with customers</i>, using the modified retrospective (or cumulative
effect) method for transition. Under this transition method, periods prior to 2018 have not been restated and the cumulative effect
of initially applying the new standard was recorded as an adjustment to Retained earnings at January 1, 2018. The standard replaces
numerous requirements in U.S. GAAP, including industry-specific requirements, and provides companies with a single model for recognizing
revenue from contracts with customers. We applied the new accounting standard to contracts which were not completed by December
31, 2017.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in"><font style="font-weight: normal; font-style: normal">In
our Machine Clothing (MC) business segment, prior to 2018, we recorded revenue from the sale of a product when persuasive evidence
of an arrangement existed, delivery had occurred, title was transferred, the selling price was fixed, and collectability was reasonably
assured. Under the new standard, we recognize MC revenue when we satisfy our performance obligations related to the manufacture
and delivery of a product, which, in certain cases, results in earlier recognition of revenue associated with these contracts.
For the MC segment, the cumulative effect of adopting ASC 606 included an increase to Accounts receivable, a decrease to Inventories,
and an increase to Retained earnings. </font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in"><font style="font-weight: normal; font-style: normal">In
our Albany Engineered Composites (AEC) business segment, revenue from a number of long-term contracts was, prior to 2018, recorded
on the basis of the units-of-delivery method, which is considered an output method. Under the new standard, revenue from most of
these contracts is recognized over time using an input method as the measure of progress, which generally results in earlier recognition
of revenue. Prior to adoption of the new standard, the classification of revenue in excess of progress billings on long-term contracts
was included in Accounts receivable. Under the new standard, such assets are considered Contract assets, which are rights to consideration
that are conditional on something other than the passage of time, such as completion of remaining performance obligations. As a
result of adoption of the new standard, such assets were reclassified at transition from Accounts receivable to Contract assets.
In addition, under the new standard, we are required to limit our estimate of contract values to the period of the legally enforceable
contract, which in many cases is considerably shorter than the contract period used under the former standard. While certain contracts
are expected to be profitable over the course of the program life when including expected renewals, under the new standard, our
estimate of contract revenues and costs is limited to the estimated value of enforceable rights and obligations, excluding anticipated
renewals. In some cases, this shorter contract period may result in a loss contract provision, and our transition adjustment included
such loss accruals. Expected losses on projects includes losses on contract options that are probable of exercise, excluding profitable
options that often follow. For AEC, the cumulative effect of adopting ASC 606 included increases to Contract assets and Accrued
liabilities, and decreases to Accounts receivable, Inventories and Retained earnings.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The table below presents the cumulative
effect of changes made to our December 31, 2017 Consolidated Balance Sheet as the result of adoption of ASC 606:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0in"> </p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td colspan="6" style="text-align: center">ALBANY INTERNATIONAL CORP.</td></tr>
<tr style="vertical-align: bottom">
<td colspan="6" style="text-align: center">CONSOLIDATED BALANCE SHEET</td></tr>
<tr style="vertical-align: bottom">
<td colspan="6" style="text-align: center">(in thousands, except share data)</td></tr>
<tr style="vertical-align: bottom">
<td colspan="6" style="text-align: center">(unaudited)</td></tr>
</table>
<p style="margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="text-align: left"> </td><td> </td>
<td colspan="2"></td><td> </td>
<td colspan="2"></td><td> </td>
<td colspan="2"></td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="text-align: center; border-bottom: Black 1pt solid">As previously reported at December 31, 2017</td><td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="text-align: center; border-bottom: Black 1pt solid">Adjustments<br /> Increase/(decrease)</td><td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="text-align: center; border-bottom: Black 1pt solid">Opening balance, as<br /> adjusted, January 1, 2018</td></tr>
<tr style="vertical-align: bottom">
<td>ASSETS</td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: silver">
<td style="width: 46%; text-align: left">  Cash and cash equivalents</td><td style="width: 5%"> </td>
<td style="width: 12%; text-align: right">$183,727</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 12%; text-align: right">$-</td><td style="width: 1%; text-align: left"> </td><td style="width: 5%"> </td>
<td style="width: 12%; text-align: right">$183,727</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">  Accounts receivable, net</td><td> </td>
<td style="text-align: right">202,675</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">7,667</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">210,342</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left">  Contract assets</td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">47,415</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">47,415</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td>  Inventories</td><td> </td>
<td style="text-align: right">136,519</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">(47,054</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: right">89,465</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left">  Income taxes prepaid and receivable</td><td> </td>
<td style="text-align: right">6,266</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">6,266</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt">  Prepaid expenses and other current assets</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">14,520</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">14,520</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left; padding-left: 11pt">  Total current assets</td><td> </td>
<td style="text-align: right">543,707</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">8,028</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">551,735</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">  Property, plant and equipment, net</td><td> </td>
<td style="text-align: right">454,302</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">454,302</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left">  Intangibles, net</td><td> </td>
<td style="text-align: right">55,441</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">55,441</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td>  Goodwill</td><td> </td>
<td style="text-align: right">166,796</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">166,796</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left">  Deferred income taxes</td><td> </td>
<td style="text-align: right">68,648</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">1,756</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">70,404</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">  Noncurrent receivables</td><td> </td>
<td style="text-align: right">32,811</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">32,811</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left; padding-bottom: 1pt">  Other assets</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">39,493</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">1,119</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">40,612</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 11pt">  Total assets</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">$1,361,198</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">$10,903</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">$1,372,101</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-family: Arial MT; font-weight: bold; font-style: italic; text-align: right"> </td><td style="font-family: Arial MT; font-weight: bold; font-style: italic"> </td>
<td style="font-family: Arial MT; font-weight: bold; font-style: italic; text-align: right"> </td><td style="font-family: Arial MT; font-weight: bold; font-style: italic; text-align: left"> </td><td style="font-family: Arial MT; font-weight: bold; font-style: italic"> </td>
<td style="font-family: Arial MT; font-weight: bold; font-style: italic; text-align: right"> </td><td style="font-family: Arial MT; font-weight: bold; font-style: italic; text-align: left"> </td><td style="font-family: Arial MT; font-weight: bold; font-style: italic"> </td>
<td style="font-family: Arial MT; font-weight: bold; font-style: italic; text-align: right"> </td><td style="font-family: Arial MT; font-weight: bold; font-style: italic; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left">  Notes and loans payable</td><td> </td>
<td style="text-align: right">$262</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">$-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">$262</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">  Accounts payable</td><td> </td>
<td style="text-align: right">44,899</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">44,899</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left">  Accrued liabilities</td><td> </td>
<td style="text-align: right">105,914</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">16,808</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">122,722</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">  Current maturities of long-term debt</td><td> </td>
<td style="text-align: right">1,799</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">1,799</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left; padding-bottom: 1pt">  Income taxes payable</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">8,643</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">8,643</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">  Total current liabilities</td><td> </td>
<td style="text-align: right">161,517</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">16,808</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">178,325</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td>  Long-term debt</td><td> </td>
<td style="text-align: right">514,120</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">514,120</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">  Other noncurrent liabilities</td><td> </td>
<td style="text-align: right">101,555</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">101,555</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left; padding-bottom: 1pt">  Deferred taxes and other liabilities</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">10,991</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">52</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">11,043</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt">  Total liabilities</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">788,183</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">16,860</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">805,043</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">SHAREHOLDERS' EQUITY</td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td>  Preferred stock, par value $5.00 per share;</td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left; padding-left: 11pt">  authorized 2,000,000 shares; none issued</td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td>  Class A Common Stock, par value $.001 per share;</td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="text-align: left; padding-left: 11pt">  authorized 100,000,000 shares; issued 37,395,753 in 2017</td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 22pt">  and 37,319,266 in 2016</td><td> </td>
<td style="text-align: right">37</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">37</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td>  Class B Common Stock, par value $.001 per share;</td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left; padding-left: 11pt">  authorized 25,000,000 shares; issued and</td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left; padding-left: 11pt">  outstanding 3,233,998 in 2017 and 2016</td><td> </td>
<td style="text-align: right">3</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">3</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">  Additional paid in capital</td><td> </td>
<td style="text-align: right">428,423</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">428,423</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left">  Retained earnings</td><td> </td>
<td style="text-align: right">534,082</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">(5,630</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: right">528,452</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">  Accumulated items of other comprehensive income:</td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-left: 11pt">  Translation adjustments</td><td> </td>
<td style="text-align: right">(87,318</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">(87,318</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left">  Pension and postretirement liability adjustments</td><td> </td>
<td style="text-align: right">(50,536</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">(50,536</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">  Derivative valuation adjustment</td><td> </td>
<td style="text-align: right">1,953</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">1,953</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td colspan="2" style="text-align: left">  Treasury stock (Class A), at cost 8,431,335 shares in 2017</td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 11pt"> and 8,443,444 shares in 2016</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">(256,876</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">(256,876</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">  Total Company shareholders' equity</td><td> </td>
<td style="text-align: right">569,768</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">(5,630</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: right">564,138</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left; padding-bottom: 1pt">  Noncontrolling interest</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">3,247</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">(327</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">2,920</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt"> Total equity</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">573,015</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">(5,957</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">567,058</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left; padding-bottom: 2.5pt; padding-left: 11pt">  Total liabilities and shareholders' equity</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">$1,361,198</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">$10,903</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">$1,372,101</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in; text-indent: 0.5in"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">Significant changes to our accounting
policies as a result of adopting the new standard are discussed below.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in"><font style="font-family: Arial, Helvetica, Sans-Serif">For
periods ending after December 31, 2017, we account for a contract when it has approval and commitment from both parties, the rights
of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration
is probable.</font><font style="font-family: inherit"> </font><font style="font-family: Arial, Helvetica, Sans-Serif">Revenue is
measured based on the consideration specified in the contract with the customer, and excludes any amounts collected on behalf of
third parties. We recognize revenue when we satisfy a performance obligation by transferring control over a product or service,
or a series of distinct goods or services, to the customer which occurs either at a point in time, or over time, depending on the
performance obligation in the contract. A performance obligation is a promise in the contract to transfer a distinct good or service
to the customer, and is the unit of account under the new revenue standard. “Control” refers to the ability to direct
the use of, and obtain substantially all of the remaining benefits from the product. A contract’s transaction price is allocated
to each material distinct performance obligation and is recognized as revenue when, or as, the performance obligation is satisfied.</font></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">In our Machine Clothing segment, our
primary performance obligation in most contracts is to provide solution-based, custom-designed fabrics and belts to the customer.
We satisfy this performance obligation upon transferring control of the product to the customer at a specific point in time. Generally,
the customer obtains control when the product has been received at the location specified by the customer, at which time the only
remaining obligations under the contract are fulfillment costs, which are accrued when control of the product is transferred.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">In the Machine Clothing segment, some
contracts with certain customers may also obligate us to provide various product-related services at no additional cost to the
customer. When this obligation is material in the context of the contract with the customer, we recognize a separate performance
obligation and allocate revenue to those services based on their estimated standalone selling price. The standalone selling price
for these services is determined based upon an analysis of the services offered and an assessment of the price we might charge
for such services as a separate offering. As we typically provide such services on a stand-ready basis, we recognize this revenue
over time. Revenue allocated to such service performance obligations is the only Machine Clothing revenue that is recognized over
time.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">In our Albany Engineered
Composites (AEC) business segment, we primarily enter into contracts to manufacture and deliver highly engineered advanced
composite products to our customers. The majority of AEC revenue is from short duration, firm-fixed-price orders that are
placed under a master agreement containing general terms and conditions applicable to all orders placed under the master
agreement. To determine the proper revenue recognition method, we evaluate whether two or more orders or contracts should be
combined and accounted for as one single contract, and whether the combined or single contract contains single or multiple
performance obligations. This evaluation requires significant judgment, and the decision to combine a group of contracts, or
to allocate revenue from the combined or single contract among multiple performance obligations could have a significant
impact on the amount of revenue and profit recorded in a given period. For most AEC contracts, the nature of our promise (or
our performance obligation) to the customer is to manage the contract and provide a significant service of integrating a
complex set of tasks and components into a single project or capability, which will often result in the delivery of multiple
highly interdependent and interrelated units.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">At the inception of a contract we estimate
the transaction price based on our current rights, and do not contemplate future modifications (including unexercised options)
or follow-on contracts until they become legally enforceable. Many AEC contracts are subsequently modified to include changes in
specifications, requirements or price, which may create new or change existing enforceable rights and obligations. Depending on
the nature of the modification, we consider whether to account for the modification as an adjustment to the existing contract or
as a separate contract. Generally, we are able to conclude that such modifications are not distinct from the existing contract,
due to the significant integration of the obligations, and the interrelated nature of tasks, provided for in the modification and the existing contract.
Therefore, such modifications are accounted for as if they were part of the existing contract, and we accumulate the values
of such modifications in our estimates of contract value.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0pt 0in; text-indent: 0.5in"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">Revenue is recognized over time
for a large portion of our contracts in AEC as most of our contracts have provisions that, under the guidance in ASC 606, are
deemed to transfer control to the customer over time. Revenue is recognized based on the extent of progress towards
completion of the performance obligation. The selection of the method to measure progress toward completion requires judgment
and is based on the nature of the products or services to be provided. We generally use the cost-to-cost measure of progress
for our contracts because it best depicts the transfer of assets to the customer which occurs as we incur costs to produce
the contract deliverables. Under the cost-to-cost measure of progress, the extent of progress toward completion is measured
based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation.
Revenue, including profit, is recorded proportionally as costs are incurred. Accounting for long-term contracts requires
significant judgment and estimation, which could be considerably different if the underlying circumstances were to change.
When any adjustments of estimated contract revenue or costs is required, any changes from prior estimates are included in
revenues or earnings in the period in which the change occurs.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">In other AEC contracts, revenue is
recognized at a point in time because the products are offered to multiple customers, or do not have an enforceable right to payment
until the product is shipped or delivered to the location specified by the customer in the contract.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">AEC’s largest source of revenue
is derived from the LEAP contract (see Note 3) under a cost- plus-fee agreement. Beginning in 2018, the fee is variable based on
our success in achieving certain cost targets. Revenue is recognized over time as costs are incurred. Under this contract, there
is significant judgment involved in determining applicable contract costs and expected margin, and therefore in determining the
amount of revenue to be recognized.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">Payment terms granted to MC and AEC
customers reflect general competitive practices. Terms vary with product, competitive conditions, and the country of operation.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 0.5in; text-indent: 0in"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 4pt">The following table provides a summary
of the composition of each business segment:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 0.5in; text-indent: 0in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="width: 19%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 12">
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center; text-indent: 0in"><b> </b></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center; text-indent: 0in"><b>Segment</b></p></td>
<td style="width: 19%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; padding-left: 12"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><b>Reporting Unit</b></font></td>
<td style="width: 39%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; padding-left: 12"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><b>Principal Product or Service</b></font></td>
<td style="width: 23%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; padding-left: 12"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><b>Principal Locations</b></font></td></tr>
<tr>
<td style="border-bottom: Black 1pt solid; padding-left: 12"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Machine
Clothing (MC)</font></td>
<td style="border-bottom: Black 1pt solid; padding-left: 12"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Machine Clothing</font></td>
<td style="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 12">
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0in">Paper machine clothing: Permeable and impermeable
belts used in the manufacture of paper, paperboard, tissue and towel, and pulp</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0in"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0in">Engineered fabrics: Belts used in the manufacture
of nonwovens, fiber cement and several other industrial applications</p></td>
<td style="border-bottom: Black 1pt solid; padding-left: 12"><font style="font: 10pt Arial, Helvetica, Sans-Serif">World-wide</font></td></tr>
<tr>
<td rowspan="3" style="border-bottom: Black 1pt solid; padding-left: 12"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Albany Engineered Composites (AEC)</font></td>
<td style="padding-left: 12"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Albany Safran Composites (ASC)</font></td>
<td style="padding-left: 12"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3D-woven, injected composite components for aircraft engines</font></td>
<td style="padding-left: 12"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Rochester, NH Commercy, France Queretaro, Mexico</font></td></tr>
<tr>
<td style="padding-left: 12; padding-top: 8pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Airframe and engine Components (Other
AEC)</font></td>
<td style="padding-left: 12; padding-top: 8pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Composite airframe and engine components for military and commercial aircraft</font></td>
<td style="padding-left: 12; padding-top: 8pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Salt Lake City, UT Boerne, TX Queretaro, Mexico</font></td></tr>
<tr>
<td style="border-bottom: Black 1pt solid; padding-left: 12"> </td>
<td style="border-bottom: Black 1pt solid; padding-left: 12"> </td>
<td style="border-bottom: Black 1pt solid; padding-left: 12"> </td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0in"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">We disaggregate revenue earned from
contracts with customers for each of our business segments and reporting units based on the timing of revenue recognition, and
groupings used for internal review purposes.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">The following table disaggregates revenue for
each reporting unit by timing of revenue recognition:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom; background-color: white">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 4%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 36%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 20%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 20%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; border-bottom: Black 0.5pt solid; width: 20%"> </td></tr>
<tr style="background-color: white">
<td style="font-weight: bold; font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom; border-top: Black 0.5pt solid"> </td>
<td style="font-weight: bold; font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom; border-top: Black 0.5pt solid"> </td>
<td colspan="2" style="font-weight: bold; vertical-align: middle; border-top: Black 0.5pt solid; text-align: center">For the Six Months Ended</td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td></tr>
<tr style="background-color: white">
<td style="font-weight: bold; vertical-align: middle"> </td>
<td style="font-weight: bold; font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td colspan="2" style="font-weight: bold; vertical-align: middle; text-align: center">June 30, 2018</td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td colspan="2" style="font-weight: bold; border-bottom: Black 0.5pt solid">(in thousands)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">Point in Time Revenue Recognition</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">Over Time Revenue Recognition</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">Total</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font-family: Calibri, Helvetica, Sans-Serif"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif"> </td></tr>
<tr style="vertical-align: middle; background-color: white">
<td colspan="2" style="border-bottom: Black 0.5pt solid">Machine Clothing</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">$309,186</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">$1,600</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">$310,786</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td style="font-family: Calibri, Helvetica, Sans-Serif"> </td>
<td style="font-family: Calibri, Helvetica, Sans-Serif"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td></tr>
<tr style="background-color: white">
<td colspan="2" style="vertical-align: middle">Albany Engineered Composites</td>
<td style="font-weight: bold; vertical-align: bottom; text-align: right"> </td>
<td style="font-weight: bold; vertical-align: bottom; text-align: right"> </td>
<td style="font-weight: bold; vertical-align: bottom; text-align: right"> </td></tr>
<tr style="background-color: white">
<td style="font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="vertical-align: middle">ASC</td>
<td style="font-weight: bold; vertical-align: bottom; text-align: right">                      -   </td>
<td style="font-weight: bold; vertical-align: bottom; text-align: right">               87,806</td>
<td style="font-weight: bold; vertical-align: bottom; text-align: right">               87,806</td></tr>
<tr>
<td style="font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom; border-bottom: Black 0.5pt solid; background-color: white"> </td>
<td style="vertical-align: middle; border-bottom: Black 0.5pt solid; background-color: white">Other AEC</td>
<td style="font-weight: bold; vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: right">               11,744</td>
<td style="font-weight: bold; vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: right; background-color: white">               75,870</td>
<td style="font-weight: bold; vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: right; background-color: white">               87,614</td></tr>
<tr style="background-color: white">
<td colspan="2" style="vertical-align: middle; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid">Total Albany Engineered Composites</td>
<td style="font-weight: bold; vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">               11,744</td>
<td style="font-weight: bold; vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">             163,676</td>
<td style="font-weight: bold; vertical-align: bottom; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">             175,420</td></tr>
<tr style="background-color: white">
<td style="font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="vertical-align: middle"> </td>
<td style="font-weight: bold; vertical-align: bottom; text-align: right"> </td>
<td style="font-weight: bold; vertical-align: bottom; text-align: right"> </td>
<td style="font-weight: bold; vertical-align: bottom; text-align: right"> </td></tr>
<tr style="background-color: white">
<td style="font-family: Calibri, Helvetica, Sans-Serif; vertical-align: bottom"> </td>
<td style="vertical-align: middle"> </td>
<td style="font-weight: bold; vertical-align: middle; text-align: right"> </td>
<td style="font-weight: bold; vertical-align: middle; text-align: right"> </td>
<td style="font-weight: bold; vertical-align: middle; text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td colspan="2" style="font: 11pt Calibri, Helvetica, Sans-Serif; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid">Total Revenue</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$320,930</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$165,276</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$486,206</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in"></p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0in"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The following table disaggregates MC
segment revenue by significant product groupings (paper machine clothing (PMC) and engineered fabrics), and, for PMC, the geographical
region to which the paper machine clothing was sold:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 75%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom; background-color: white">
<td style="width: 5%"> </td>
<td style="width: 41%"> </td>
<td style="width: 45%"> </td></tr>
<tr style="background-color: white">
<td style="font-weight: bold; vertical-align: bottom; border-top: Black 0.5pt solid"> </td>
<td style="font-weight: bold; vertical-align: bottom; border-top: Black 0.5pt solid"> </td>
<td style="font-weight: bold; vertical-align: middle; border-top: Black 0.5pt solid; text-align: center">For the Six Months Ended</td></tr>
<tr style="background-color: white">
<td colspan="2" style="font-weight: bold; vertical-align: middle; border-bottom: Black 0.5pt solid">(in thousands)</td>
<td style="font-weight: bold; vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: center">June 30, 2018</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: middle; background-color: white">
<td colspan="2">Americas PMC</td>
<td style="font-weight: bold; text-align: right">$152,686</td></tr>
<tr style="vertical-align: middle; background-color: white">
<td colspan="2">Eurasia PMC</td>
<td style="font-weight: bold; text-align: right">                                   116,500</td></tr>
<tr style="vertical-align: middle; background-color: white">
<td colspan="2">Engineered Fabrics</td>
<td style="font-weight: bold; text-align: right">                                    41,600</td></tr>
<tr style="vertical-align: bottom; background-color: white">
<td colspan="2" style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid">Total Machine Clothing Net sales</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$310,786</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">In accordance with ASC 606-10-50-14,
we do not disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year
or less. Contracts in the Machine Clothing segment are generally for periods of less than a year. Most contracts in the AEC segment
are short duration firm-fixed price orders representing performance obligations with an original maturity of less than one year.
Performance obligations as of June 30, 2018 that had an original duration of greater than one year totaled $105 million and relate
primarily to firm contracts in the AEC segment. Of that amount, we expect to recognize as revenue approximately $35 million during
2018, with the remainder to be recognized between 2019 and 2021.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0in"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">For some AEC contracts, we perform
pre-production or nonrecurring engineering services. These costs are normally considered a fulfillment activity, rather than a
performance obligation. Fulfillment activities that create resources that will be used in satisfying performance obligations in
the future, and are expected to be recovered, are capitalized to Other Assets, which is classified as a noncurrent asset in the
Consolidated Balance Sheets. The capitalized costs are amortized into Cost of goods sold over the period over which the asset is
expected to contribute to future cash flows.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">As a result of applying the cumulative
effect method for transition to ASC 606, we are required to disclose the effect of the new standard on each line of the consolidated
financial statements. The following tables show the balances
as reported for the period ended June 30, 2018, and how the consolidated financial statements would have appeared if we had not
adopted ASC 606.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td colspan="11" style="text-align: center">ALBANY INTERNATIONAL CORP.</td></tr>
<tr style="vertical-align: bottom">
<td colspan="11" style="text-align: center">CONSOLIDATED STATEMENT OF INCOME</td></tr>
<tr style="vertical-align: bottom">
<td colspan="11" style="text-align: center">(in thousands, except per share amounts)</td></tr>
<tr style="vertical-align: bottom">
<td colspan="11" style="text-align: center">(unaudited)</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="padding-left: 6"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="padding-left: 6"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: center; width: 8%">As reported for the Three Months Ended June 30, 2018</td>
<td style="text-align: center; width: 1%"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: center; width: 8%">Adjustments to reverse effects of ASC 606</td>
<td style="text-align: center; width: 1%"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: center; width: 8%">As adjusted for the Three Months Ended June 30, 2018 to exclude adoption of ASC 606 </td>
<td style="width: 48%; padding-left: 6"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: center; width: 8%">As reported for the Six Months Ended June 30, 2018</td>
<td style="text-align: center; width: 1%"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: center; width: 8%">Adjustments to reverse effects of ASC 606</td>
<td style="text-align: center; width: 1%"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: center; width: 8%">As adjusted for the Six Months Ended June 30, 2018 to exclude adoption of ASC 606 </td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="padding-left: 6"> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: right">$256,225</td>
<td style="text-align: right"> </td>
<td style="text-align: right">$400</td>
<td style="text-align: right"> </td>
<td style="text-align: right">$256,625</td>
<td style="text-align: left; padding-left: 6">Net sales</td>
<td style="text-align: right">$486,206</td>
<td style="text-align: right"> </td>
<td style="text-align: right">($8,034)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">$478,172</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 0.5pt solid; text-align: right">164,047</td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right">2,304</td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right">166,351</td>
<td style="text-align: left; padding-left: 6">Cost of goods sold</td>
<td style="border-bottom: black 0.5pt solid; text-align: right">312,377</td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right">(4,222)</td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right">308,155</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left; padding-left: 6"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: right">        92,178</td>
<td style="text-align: right"> </td>
<td style="text-align: right">         (1,904)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">        90,274</td>
<td style="text-align: left; padding-left: 6">Gross profit</td>
<td style="text-align: right">173,829</td>
<td style="text-align: right"> </td>
<td style="text-align: right">(3,812)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">170,017</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right">        36,707</td>
<td style="text-align: right"> </td>
<td style="text-align: right">                5</td>
<td style="text-align: right"> </td>
<td style="text-align: right">        36,712</td>
<td style="text-align: left; padding-left: 6">   Selling, general, and administrative expenses</td>
<td style="text-align: right">78,637</td>
<td style="text-align: right"> </td>
<td style="text-align: right">(55)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">78,582</td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: right">        10,198</td>
<td style="text-align: right"> </td>
<td style="text-align: right">                 -</td>
<td style="text-align: right"> </td>
<td style="text-align: right">        10,198</td>
<td style="text-align: left; padding-left: 6">   Technical and research expenses</td>
<td style="text-align: right">20,515</td>
<td style="text-align: right"> </td>
<td style="text-align: right">                 -</td>
<td style="text-align: right"> </td>
<td style="text-align: right">20,515</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: right">          2,589</td>
<td style="text-align: right"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">                 -</td>
<td style="text-align: right"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">          2,589</td>
<td style="text-align: left; padding-left: 6">   Restructuring expenses, net</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">11,162</td>
<td style="text-align: right"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">                 -</td>
<td style="text-align: right"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">11,162</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left; padding-left: 6"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: right">        42,684</td>
<td style="text-align: right"> </td>
<td style="text-align: right">         (1,909)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">        40,775</td>
<td style="text-align: left; padding-left: 6">Operating income</td>
<td style="text-align: right">63,515</td>
<td style="text-align: right"> </td>
<td style="text-align: right">(3,757)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">59,758</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right">          4,621</td>
<td style="text-align: right"> </td>
<td style="text-align: right">                 -</td>
<td style="text-align: right"> </td>
<td style="text-align: right">          4,621</td>
<td style="text-align: left; padding-left: 6">   Interest expense, net</td>
<td style="text-align: right">8,909</td>
<td style="text-align: right"> </td>
<td style="text-align: right">                 -</td>
<td style="text-align: right"> </td>
<td style="text-align: right">8,909</td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="border-bottom: Black 0.5pt solid; text-align: right">            726</td>
<td style="text-align: right"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">                 -</td>
<td style="text-align: right"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">            726</td>
<td style="text-align: left; padding-left: 6">   Other expense, net</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">          2,178</td>
<td style="text-align: right"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">                 -</td>
<td style="text-align: right"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">          2,178</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left; padding-left: 6"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right">        37,337</td>
<td style="text-align: right"> </td>
<td style="text-align: right">         (1,909)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">        35,428</td>
<td style="text-align: left; padding-left: 6">Income before income taxes </td>
<td style="text-align: right">52,428</td>
<td style="text-align: right"> </td>
<td style="text-align: right">(3,757)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">48,671</td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="border-bottom: black 0.5pt solid; text-align: right">7,031</td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right">(507)</td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right">6,524</td>
<td style="text-align: left; padding-left: 6">   Income tax expense</td>
<td style="border-bottom: black 0.5pt solid; text-align: right">11,640</td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right">(1,108)</td>
<td style="text-align: right"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right">10,532</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left; padding-left: 6"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right">        30,306</td>
<td style="text-align: right"> </td>
<td style="text-align: right">         (1,402)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">        28,904</td>
<td style="text-align: left; padding-left: 6"> Net income </td>
<td style="text-align: right">        40,788</td>
<td style="text-align: right"> </td>
<td style="text-align: right">         (2,649)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">        38,139</td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="border-bottom: Black 0.5pt solid; text-align: right">             (59)</td>
<td style="text-align: right"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">             (27)</td>
<td style="text-align: right"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">             (86)</td>
<td style="text-align: left; padding-left: 6">Net income/(loss) attributable to the noncontrolling interest</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">            178</td>
<td style="text-align: right"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">             (84)</td>
<td style="text-align: right"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">              94</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 2pt double; text-align: right; border-top-color: Black; border-top-width: 0.5pt">$30,365</td>
<td style="text-align: right"> </td>
<td style="border-bottom: Black 2pt double; text-align: right; border-top-color: Black; border-top-width: 0.5pt">($1,375)</td>
<td style="text-align: right"> </td>
<td style="border-bottom: Black 2pt double; text-align: right; border-top-color: Black; border-top-width: 0.5pt">$28,990</td>
<td style="text-align: left; padding-left: 6"> Net income attributable to the Company </td>
<td style="border-bottom: Black 2pt double; text-align: right; border-top-color: Black; border-top-width: 0.5pt">$40,610</td>
<td style="text-align: right"> </td>
<td style="border-bottom: Black 2pt double; text-align: right; border-top-color: Black; border-top-width: 0.5pt">($2,565)</td>
<td style="text-align: right"> </td>
<td style="border-bottom: Black 2pt double; text-align: right; border-top-color: Black; border-top-width: 0.5pt">$38,045</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left; padding-left: 6"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: right">$0.94</td>
<td style="text-align: right"> </td>
<td style="text-align: right">($0.04)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">$0.90</td>
<td style="text-align: left; padding-left: 6">Earnings per share attributable to Company shareholders - Basic</td>
<td style="text-align: right">$1.26</td>
<td style="text-align: right"> </td>
<td style="text-align: right">($0.08)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">$1.18</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left; padding-left: 6"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right">$0.94</td>
<td style="text-align: right"> </td>
<td style="text-align: right">($0.04)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">$0.90</td>
<td style="text-align: left; padding-left: 6">Earnings per share attributable to Company shareholders - Diluted</td>
<td style="text-align: right">$1.26</td>
<td style="text-align: right"> </td>
<td style="text-align: right">($0.08)</td>
<td style="text-align: right"> </td>
<td style="text-align: right">$1.18</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in"></p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in; text-indent: 0in"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td colspan="11" style="text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif">ALBANY INTERNATIONAL CORP.</font></td></tr>
<tr style="vertical-align: bottom">
<td colspan="11" style="text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif">CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME/(LOSS)</font></td></tr>
<tr style="vertical-align: bottom">
<td colspan="11" style="text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif">(in thousands)</font></td></tr>
<tr style="vertical-align: bottom">
<td colspan="11" style="text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif">(unaudited)</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: center; padding-left: 6"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: center"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="padding-left: 6"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: center; width: 8%"><font style="font-family: Arial, Helvetica, Sans-Serif">As
reported for the Three Months Ended June 30, 2018</font></td>
<td style="text-align: center; width: 1%"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 0.5pt solid; text-align: center; width: 8%"><font style="font-family: Arial, Helvetica, Sans-Serif">Adjustments
to reverse effects of ASC 606</font></td>
<td style="text-align: center; width: 1%"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 0.5pt solid; text-align: center; width: 8%"><font style="font-family: Arial, Helvetica, Sans-Serif">As
adjusted for the Three Months Ended June 30, 2018 to exclude adoption of ASC 606 </font></td>
<td style="width: 48%; padding-left: 6"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 0.5pt solid; text-align: center; width: 8%"><font style="font-family: Arial, Helvetica, Sans-Serif">As
reported for the Six Months Ended June 30, 2018</font></td>
<td style="text-align: center; width: 1%"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 0.5pt solid; text-align: center; width: 8%"><font style="font-family: Arial, Helvetica, Sans-Serif">Adjustments
to reverse effects of ASC 606</font></td>
<td style="text-align: center; width: 1%"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 0.5pt solid; text-align: center; width: 8%"><font style="font-family: Arial, Helvetica, Sans-Serif">As
adjusted for the Six Months Ended June 30, 2018 to exclude adoption of ASC 606 </font></td></tr>
<tr style="vertical-align: bottom">
<td><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="padding-left: 6"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$30,306</font></td>
<td style="text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">($1,402)</font></td>
<td style="text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$28,904</font></td>
<td style="text-align: left; padding-left: 6"><font style="font-family: Arial, Helvetica, Sans-Serif">Net income</font></td>
<td style="text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$40,788</font></td>
<td style="text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">($2,649)</font></td>
<td style="text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$38,139</font></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left; padding-left: 6"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif">   </font></td>
<td style="text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; padding-left: 6"><font style="font-family: Arial, Helvetica, Sans-Serif">Other comprehensive
income/(loss), before tax:</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="background-color: #BFBFBF">
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">      (30,851)</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">           839</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">      (30,012)</font></td>
<td style="padding-left: 6; vertical-align: middle; text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif">Foreign
currency translation adjustments</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">      (13,346)</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">           531</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">      (12,815)</font></td></tr>
<tr>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">          (518)</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">               -</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">          (518)</font></td>
<td style="padding-left: 6; vertical-align: middle; text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif">Pension/postretirement
curtailment</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">          (518)</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">               -</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">          (518)</font></td></tr>
<tr style="background-color: #BFBFBF">
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="padding-left: 6; vertical-align: middle; text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif">Amortization
of pension liability adjustments:</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">       (1,113)</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">               -</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">       (1,113)</font></td>
<td style="padding-left: 6; vertical-align: middle; text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif">   Prior
service credit</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">       (2,227)</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">               -</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">       (2,227)</font></td></tr>
<tr style="background-color: #BFBFBF">
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">        1,291</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">               -</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">        1,291</font></td>
<td style="padding-left: 6; vertical-align: middle; text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif">   Net
actuarial loss</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">        2,588</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">               -</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">        2,588</font></td></tr>
<tr>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">             54</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">               -</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">             54</font></td>
<td style="padding-left: 6; vertical-align: middle; text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif">Payments
and amortization related to interest rate swaps included in earnings</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">           234</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">               -</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">           234</font></td></tr>
<tr style="background-color: #BFBFBF">
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">        2,211</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">               -</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">        2,211</font></td>
<td style="padding-left: 6; vertical-align: middle; text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif">Derivative
valuation adjustment</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">        7,926</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">               -</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">        7,926</font></td></tr>
<tr>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; padding-left: 6"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; padding-left: 6"><font style="font-family: Arial, Helvetica, Sans-Serif">Income taxes related
to items of other comprehensive income/(loss):</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td></tr>
<tr style="background-color: #BFBFBF">
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">           155</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">               -</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">           155</font></td>
<td style="vertical-align: middle; padding-left: 6"><font style="font-family: Arial, Helvetica, Sans-Serif">Pension/postretirement
curtailment</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">           155</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">               -</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">           155</font></td></tr>
<tr>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">            (53)</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">               -</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">            (53)</font></td>
<td style="padding-left: 6; vertical-align: middle; text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif">Amortization
of pension liability adjustment</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">          (108)</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">               -</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">          (108)</font></td></tr>
<tr style="background-color: #BFBFBF">
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">            (13)</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">               -</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">            (13)</font></td>
<td style="padding-left: 6; vertical-align: middle; text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif">Payments
related to interest rate swaps included in earnings</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">            (56)</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">               -</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">            (56)</font></td></tr>
<tr>
<td style="vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">          (530)</font></td>
<td style="vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">               -</font></td>
<td style="vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">          (530)</font></td>
<td style="padding-left: 6; vertical-align: middle; text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif">Derivative
valuation adjustment</font></td>
<td style="vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">       (1,902)</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">               -</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">       (1,902)</font></td></tr>
<tr style="background-color: #BFBFBF">
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">           939</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">          (563)</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">           376</font></td>
<td style="padding-left: 6; vertical-align: middle; text-align: left"><font style="font-family: Arial, Helvetica, Sans-Serif">Comprehensive
income</font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">       33,534</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">       (2,118)</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">       31,416</font></td></tr>
<tr>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">            (48)</font></td>
<td style="vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">            (27)</font></td>
<td style="vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">            (75)</font></td>
<td style="vertical-align: middle; padding-left: 6"><font style="font-family: Arial, Helvetica, Sans-Serif">Comprehensive
income attributable to the noncontrolling interest</font></td>
<td style="vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">           182</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">            (84)</font></td>
<td style="vertical-align: bottom; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="vertical-align: middle; border-bottom: Black 0.5pt solid; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">             98</font></td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$987</font></td>
<td style="border-bottom: Black 2pt double; text-align: right; border-top-color: Black; border-top-width: 0.5pt"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">($536)</font></td>
<td style="border-bottom: Black 2pt double; text-align: right; border-top-color: Black; border-top-width: 0.5pt"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 2pt double; text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif">$451</font></td>
<td style="font-family: Arial MT; padding-left: 6"><font style="font-family: Arial, Helvetica, Sans-Serif">Comprehensive income
attributable to the Company</font></td>
<td style="border-bottom: Black 2pt double; text-align: right; border-top-color: Black; border-top-width: 0.5pt"><font style="font-family: Arial, Helvetica, Sans-Serif">$33,352</font></td>
<td style="text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2pt double; text-align: right; border-top-color: Black; border-top-width: 0.5pt"><font style="font-family: Arial, Helvetica, Sans-Serif">($2,034)</font></td>
<td style="text-align: right"><font style="font-family: Arial, Helvetica, Sans-Serif"> </font></td>
<td style="border-bottom: Black 2pt double; text-align: right; border-top-color: Black; border-top-width: 0.5pt"><font style="font-family: Arial, Helvetica, Sans-Serif">$31,318</font></td></tr>
</table>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in; text-indent: 0in"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0in"><b><i> </i></b></p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in; text-indent: 0in"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center">ALBANY INTERNATIONAL CORP.</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center">CONSOLIDATED BALANCE SHEET</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center">(in thousands, except share data)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center">(unaudited)</td></tr>
</table>
<p style="margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="text-align: left"> </td><td> </td>
<td colspan="2"></td><td> </td>
<td colspan="2"></td><td> </td>
<td colspan="2"></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left"> </td><td> </td>
<td colspan="2"></td><td> </td>
<td colspan="2"></td><td> </td>
<td colspan="2"></td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="text-align: center; border-bottom: Black 1pt solid">As reported June 30, 2018</td><td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="text-align: center; border-bottom: Black 1pt solid">Adjustments to reverse effects of ASC 606</td><td style="padding-bottom: 1pt"> </td>
<td colspan="2" style="text-align: center; border-bottom: Black 1pt solid">As adjusted for June 30, 2018 to exclude adoption of ASC 606</td></tr>
<tr style="vertical-align: bottom">
<td>ASSETS</td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="width: 46%; text-align: left; background-color: silver">  Cash and cash equivalents</td><td style="text-align: left; background-color: silver; width: 5%"> </td>
<td style="width: 12%; text-align: right; background-color: silver">$154,744</td><td style="width: 1%; text-align: left; background-color: silver"> </td><td style="text-align: left; background-color: silver; width: 5%"> </td>
<td style="width: 12%; text-align: right; background-color: #BFBFBF">$-</td><td style="width: 1%; text-align: left; background-color: #BFBFBF"> </td><td style="text-align: left; background-color: silver; width: 5%"> </td>
<td style="width: 12%; text-align: right; background-color: silver">$154,744</td><td style="width: 1%; text-align: left; background-color: silver"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">  Accounts receivable, net</td><td> </td>
<td style="text-align: right">249,482</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">(4,286</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: right">245,196</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left">  Contract assets</td><td> </td>
<td style="text-align: right">59,244</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">(59,244</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td>  Inventories</td><td> </td>
<td style="text-align: right">97,659</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">51,736</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">149,395</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left">  Income taxes prepaid and receivable</td><td> </td>
<td style="text-align: right">6,087</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">6,087</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt">  Prepaid expenses and other current assets</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">19,559</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">19,559</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left">      Total current assets</td><td> </td>
<td style="text-align: right">586,775</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">(11,794</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: right">574,981</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">  Property, plant and equipment, net</td><td> </td>
<td style="text-align: right">450,694</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">450,694</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left">  Intangibles, net</td><td> </td>
<td style="text-align: right">52,322</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">52,322</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td>  Goodwill</td><td> </td>
<td style="text-align: right">165,474</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">165,474</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left">  Deferred income taxes</td><td> </td>
<td style="text-align: right">81,237</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">(648</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: right">80,589</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">  Noncurrent receivables</td><td> </td>
<td style="text-align: right">36,981</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">36,981</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left; padding-bottom: 1pt">  Other assets</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">48,978</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">(1,256</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">47,722</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2.5pt">      Total assets</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">$1,422,461</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">($13,698</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">$1,408,763</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-family: Arial MT; font-weight: bold; font-style: italic; text-align: right"> </td><td style="font-family: Arial MT; font-weight: bold; font-style: italic"> </td>
<td style="font-family: Arial MT; font-weight: bold; font-style: italic; text-align: right"> </td><td style="font-family: Arial MT; font-weight: bold; font-style: italic; text-align: left"> </td><td style="font-family: Arial MT; font-weight: bold; font-style: italic"> </td>
<td style="font-family: Arial MT; font-weight: bold; font-style: italic; text-align: right"> </td><td style="font-family: Arial MT; font-weight: bold; font-style: italic; text-align: left"> </td><td style="font-family: Arial MT; font-weight: bold; font-style: italic"> </td>
<td style="font-family: Arial MT; font-weight: bold; font-style: italic; text-align: right"> </td><td style="font-family: Arial MT; font-weight: bold; font-style: italic; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">LIABILITIES AND SHAREHOLDERS' EQUITY</td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left">  Notes and loans payable</td><td> </td>
<td style="text-align: right">$26</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">$-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">$26</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">  Accounts payable</td><td> </td>
<td style="text-align: right">54,752</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">54,752</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left">  Accrued liabilities</td><td> </td>
<td style="text-align: right">125,255</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">(17,485</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: right">107,770</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">  Current maturities of long-term debt</td><td> </td>
<td style="text-align: right">1,844</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">1,844</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left; padding-bottom: 1pt">  Income taxes payable</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">14,620</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">14,620</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">      Total current liabilities</td><td> </td>
<td style="text-align: right">196,497</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">(17,485</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: right">179,012</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td>  Long-term debt</td><td> </td>
<td style="text-align: right">523,186</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">523,186</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">  Other noncurrent liabilities</td><td> </td>
<td style="text-align: right">97,563</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">97,563</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left; padding-bottom: 1pt">  Deferred taxes and other liabilities</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">13,556</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">(52</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">13,504</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt">      Total liabilities</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">830,802</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">(17,537</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">813,265</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">SHAREHOLDERS' EQUITY</td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td>  Preferred stock, par value $5.00 per share;</td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left">    authorized 2,000,000 shares; none issued</td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td>  Class A Common Stock, par value $.001 per share;</td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left"><p style="margin-top: 0; margin-bottom: 0; margin-left: 0pt">    authorized 100,000,000 shares; issued 37,447,819 in</p>
<p style="margin-top: 0; margin-bottom: 0; margin-left: 0pt">    2018 and 37,395,753 in 2017</p></td><td> </td>
<td style="text-align: right">37</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">37</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td>  Class B Common Stock, par value $.001 per share;</td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left">    authorized 25,000,000 shares; issued and</td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left">    outstanding 3,233,998 in 2018 and 2017</td><td> </td>
<td style="text-align: right">3</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">3</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">  Additional paid in capital</td><td> </td>
<td style="text-align: right">429,635</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">429,635</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left">  Retained earnings</td><td> </td>
<td style="text-align: right">558,639</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">$3,065</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">561,704</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">  Accumulated items of other comprehensive income:</td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left">    Translation adjustments</td><td> </td>
<td style="text-align: right">(102,888</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: right">531</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">(102,357</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">    Pension and postretirement liability adjustments</td><td> </td>
<td style="text-align: right">(48,422</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">(48,422</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left">    Derivative valuation adjustment</td><td> </td>
<td style="text-align: right">8,155</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">8,155</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">  Treasury stock (Class A), at cost 8,418,620 shares in 2018</td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt">   and 8,431,335 shares in 2017</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">(256,602</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">-</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">(256,602</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left">      Total Company shareholders' equity</td><td> </td>
<td style="text-align: right">588,557</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">3,596</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: right">592,153</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 1pt">  Noncontrolling interest</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">3,102</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">243</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">3,345</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: left; padding-bottom: 1pt"> Total equity</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">591,659</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">3,839</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: right">595,498</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left; padding-bottom: 2.5pt">      Total liabilities and shareholders' equity</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">$1,422,461</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">($13,698</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: right">$1,408,763</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in; text-indent: 0in"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0in"><b><i> </i></b></p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in; text-indent: 0in"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center; padding-left: 6">ALBANY INTERNATIONAL CORP.</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center; padding-left: 6">CONSOLIDATED STATEMENT OF CASH FLOW</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center; padding-left: 6">(in thousands)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center; padding-left: 6">(unaudited)</td></tr>
</table>
<p style="margin: 0"> </p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="padding-left: 6; width: 7%"> </td>
<td style="padding-left: 6; width: 2%"> </td>
<td style="padding-left: 6; width: 7%"> </td>
<td style="padding-left: 6; width: 2%"> </td>
<td style="padding-left: 6; width: 7%"> </td>
<td style="padding-left: 6; width: 2%"> </td>
<td style="padding-left: 6; width: 29%"> </td>
<td style="padding-left: 6; width: 7%"> </td>
<td style="padding-left: 6; width: 6%"> </td>
<td style="padding-left: 6; width: 6%"> </td>
<td style="padding-left: 6; width: 7%"> </td>
<td style="padding-left: 6; width: 2%"> </td>
<td style="padding-left: 6; width: 7%"> </td>
<td style="padding-left: 6; width: 2%"> </td>
<td style="padding-left: 6; width: 7%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center; padding-left: 6">As reported for the Three Months Ended June 30, 2018</td>
<td style="text-align: center; padding-left: 6"> </td>
<td style="text-align: center; padding-left: 6">Adjustments to reverse effects of ASC 606</td>
<td style="text-align: center; padding-left: 6"> </td>
<td style="text-align: center; padding-left: 6">As adjusted for the Three Months Ended June 30, 2018 to exclude adoption of ASC 606</td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="text-align: center; padding-left: 6">As reported for the Six Months Ended June 30, 2018</td>
<td style="text-align: center; padding-left: 6"> </td>
<td style="text-align: center; padding-left: 6">Adjustments to reverse effects of ASC 606</td>
<td style="text-align: center; padding-left: 6"> </td>
<td style="text-align: center; padding-left: 6">As adjusted for the Six Months Ended June 30, 2018 to exclude adoption of ASC 606</td></tr>
<tr style="vertical-align: bottom">
<td style="color: red; padding-left: 6"> </td>
<td style="color: red; padding-left: 6"> </td>
<td style="color: red; padding-left: 6"> </td>
<td style="color: red; padding-left: 6"> </td>
<td style="color: red; padding-left: 6"> </td>
<td colspan="3" style="white-space: nowrap; padding-left: 6">OPERATING ACTIVITIES</td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="color: red; padding-left: 6"> </td>
<td style="color: red; padding-left: 6"> </td>
<td style="color: red; padding-left: 6"> </td>
<td style="color: red; padding-left: 6"> </td>
<td style="color: red; padding-left: 6"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: right; padding-left: 6">$30,306</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">($1,402)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">$28,904</td>
<td colspan="2" style="text-align: left; padding-left: 6">Net income</td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">$40,788</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">($2,649)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">$38,139</td></tr>
<tr style="vertical-align: bottom">
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td colspan="10" style="text-align: left; padding-left: 6">Adjustments to reconcile net income to net cash provided by operating activities:</td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: right; padding-left: 6"> 17,114</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> 17,114</td>
<td style="text-align: right; padding-left: 6"> </td>
<td colspan="2" style="text-align: left; padding-left: 6">Depreciation</td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> 35,416</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> 35,416</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right; padding-left: 6"> 2,559</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> 2,559</td>
<td style="text-align: right; padding-left: 6"> </td>
<td colspan="2" style="padding-left: 6">Amortization</td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> 5,205</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> 5,205</td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: right; padding-left: 6">   (854)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">   (854)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td colspan="3" style="padding-left: 6">Change in other noncurrent liabilities</td>
<td style="padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (1,231)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (1,231)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right; padding-left: 6">  (6,118)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">   (507)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (6,625)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td colspan="3" style="padding-left: 6">Change in deferred taxes and other liabilities</td>
<td style="padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (6,902)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (1,108)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (8,010)</td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: right; padding-left: 6">  853</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  853</td>
<td style="text-align: right; padding-left: 6"> </td>
<td colspan="4" style="text-align: left; padding-left: 6">Provision for write-off of property, plant and equipment</td>
<td style="text-align: right; padding-left: 6"> 1,124</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> 1,124</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right; padding-left: 6">  154</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  154</td>
<td style="text-align: right; padding-left: 6"> </td>
<td colspan="2" style="padding-left: 6">Non-cash interest expense</td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  154</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  154</td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: right; padding-left: 6"> 1,047</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> 1,047</td>
<td style="text-align: right; padding-left: 6"> </td>
<td colspan="4" style="text-align: left; padding-left: 6">Compensation and benefits paid or payable in Class A Common Stock</td>
<td style="text-align: right; padding-left: 6"> 1,336</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> 1,336</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right; padding-left: 6">  34</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  34</td>
<td style="text-align: right; padding-left: 6"> </td>
<td colspan="4" style="padding-left: 6">Fair valule adjustment on foreign currency option</td>
<td style="text-align: right; padding-left: 6">  71</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  71</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: left; padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> </td>
<td colspan="10" style="padding-left: 6"> Changes in operating assets and liabilities that (used)/provided cash: </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right; padding-left: 6">  (12,903)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (14,277)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (27,180)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td colspan="2" style="padding-left: 6">Accounts receivable</td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (44,370)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (3,727)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (48,097)</td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: right; padding-left: 6">  (13,877)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> 13,877</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td colspan="2" style="padding-left: 6">Contract assets</td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (11,761)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> 11,761</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right; padding-left: 6">  (1,371)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> 2,304</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  933</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: left; padding-left: 6">Inventories</td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (10,615)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (4,222)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (14,837)</td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: right; padding-left: 6">  (1,157)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (1,157)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td colspan="3" style="padding-left: 6">Prepaid expenses and other current assets</td>
<td style="padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (5,220)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (5,220)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right; padding-left: 6">  (5)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (5)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td colspan="3" style="padding-left: 6">Income taxes prepaid and receivable</td>
<td style="padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  97</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  97</td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: right; padding-left: 6"> 11,420</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> 11,420</td>
<td style="text-align: right; padding-left: 6"> </td>
<td colspan="2" style="padding-left: 6">Accounts payable</td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> 8,882</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> 8,882</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right; padding-left: 6"> 5,853</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">   5</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> 5,858</td>
<td style="text-align: right; padding-left: 6"> </td>
<td colspan="2" style="padding-left: 6">Accrued liabilities</td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> 4,668</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">   (55)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> 4,613</td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: right; padding-left: 6"> 10,020</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> 10,020</td>
<td style="text-align: right; padding-left: 6"> </td>
<td colspan="2" style="padding-left: 6">Income taxes payable</td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> 6,589</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> 6,589</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right; padding-left: 6">  (1,643)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (1,643)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td colspan="2" style="text-align: left; padding-left: 6">Noncurrent receivables</td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (4,170)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (4,170)</td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">  (5,745)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">  (5,745)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="padding-left: 6">Other, net</td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">  (3,321)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">  (3,321)</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">35,687</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">35,687</td>
<td style="padding-left: 6"> </td>
<td colspan="3" style="text-align: left; padding-left: 6">Net cash provided by operating activities</td>
<td style="padding-left: 6"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">16,740</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">16,740</td></tr>
<tr style="vertical-align: bottom">
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="border-top: Black 0.5pt solid; border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">(23,375)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-top: Black 0.5pt solid; border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">  - </td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-top: Black 0.5pt solid; border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">(23,375)</td>
<td style="padding-left: 6"> </td>
<td colspan="3" style="text-align: left; padding-left: 6">Net cash used in investing activities</td>
<td style="padding-left: 6"> </td>
<td style="border-top: Black 0.5pt solid; border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">(39,175)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-top: Black 0.5pt solid; border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">  - </td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-top: Black 0.5pt solid; border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">(39,175)</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt; padding-left: 6">(1,112)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt; padding-left: 6">  - </td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt; padding-left: 6">(1,112)</td>
<td style="padding-left: 6"> </td>
<td colspan="3" style="text-align: left; padding-left: 6">Net cash used in financing activities</td>
<td style="padding-left: 6"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt; padding-left: 6">(3,570)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt; padding-left: 6">  - </td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt; padding-left: 6">(3,570)</td></tr>
<tr style="vertical-align: bottom">
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">  (7,882)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">  (7,882)</td>
<td colspan="5" style="padding-left: 6">Effect of exchange rate changes on cash and cash equivalents</td>
<td style="border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">  (2,978)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">  (2,978)</td></tr>
<tr style="vertical-align: bottom">
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right; padding-left: 6"> 3,318</td>
<td style="text-align: center; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: center; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> 3,318</td>
<td colspan="4" style="text-align: left; padding-left: 6">(Decrease)/increase in cash and cash equivalents</td>
<td style="padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (28,983)</td>
<td style="text-align: center; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  - </td>
<td style="text-align: center; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (28,983)</td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="border-bottom: Black 0.5pt solid; text-align: right; padding-left: 6">  151,426</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right; padding-left: 6">  - </td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right; padding-left: 6">  151,426</td>
<td colspan="5" style="padding-left: 6">Cash and cash equivalents at beginning of period</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right; padding-left: 6">  183,727</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right; padding-left: 6">  - </td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right; padding-left: 6">  183,727</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 2pt double; text-align: right; padding-left: 6">$154,744</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: black 2pt double; text-align: right; padding-left: 6"> $   - </td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: black 2pt double; text-align: right; padding-left: 6">$154,744</td>
<td colspan="4" style="padding-left: 6">Cash and cash equivalents at end of period</td>
<td style="padding-left: 6"> </td>
<td style="border-bottom: black 2pt double; text-align: right; padding-left: 6">$154,744</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: black 2pt double; text-align: right; padding-left: 6"> $   - </td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: black 2pt double; text-align: right; padding-left: 6">$154,744</td></tr>
</table>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in; text-indent: 0in"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 4pt">The following table provides a summary
of the composition of each business segment:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 0.5in; text-indent: 0in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="width: 19%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 12">
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center; text-indent: 0in"><b> </b></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-align: center; text-indent: 0in"><b>Segment</b></p></td>
<td style="width: 19%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; padding-left: 12"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><b>Reporting Unit</b></font></td>
<td style="width: 39%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; padding-left: 12"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><b>Principal Product or Service</b></font></td>
<td style="width: 23%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; padding-left: 12"><font style="font: 10pt Arial, Helvetica, Sans-Serif"><b>Principal Locations</b></font></td></tr>
<tr>
<td style="border-bottom: Black 1pt solid; padding-left: 12"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Machine
Clothing (MC)</font></td>
<td style="border-bottom: Black 1pt solid; padding-left: 12"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Machine Clothing</font></td>
<td style="border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 12">
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0in">Paper machine clothing: Permeable and impermeable
belts used in the manufacture of paper, paperboard, tissue and towel, and pulp</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0in"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0in">Engineered fabrics: Belts used in the manufacture
of nonwovens, fiber cement and several other industrial applications</p></td>
<td style="border-bottom: Black 1pt solid; padding-left: 12"><font style="font: 10pt Arial, Helvetica, Sans-Serif">World-wide</font></td></tr>
<tr>
<td rowspan="3" style="border-bottom: Black 1pt solid; padding-left: 12"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Albany Engineered Composites (AEC)</font></td>
<td style="padding-left: 12"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Albany Safran Composites (ASC)</font></td>
<td style="padding-left: 12"><font style="font: 10pt Arial, Helvetica, Sans-Serif">3D-woven, injected composite components for aircraft engines</font></td>
<td style="padding-left: 12"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Rochester, NH Commercy, France Queretaro, Mexico</font></td></tr>
<tr>
<td style="padding-left: 12; padding-top: 8pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Airframe and engine Components (Other
AEC)</font></td>
<td style="padding-left: 12; padding-top: 8pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Composite airframe and engine components for military and commercial aircraft</font></td>
<td style="padding-left: 12; padding-top: 8pt"><font style="font: 10pt Arial, Helvetica, Sans-Serif">Salt Lake City, UT Boerne, TX Queretaro, Mexico</font></td></tr></table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0in"><b><i></i></b></p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in; text-indent: 0in"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="text-align: center; padding-left: 6">ALBANY INTERNATIONAL CORP.</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center; padding-left: 6">CONSOLIDATED STATEMENT OF CASH FLOW</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center; padding-left: 6">(in thousands)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center; padding-left: 6">(unaudited)</td></tr>
</table>
<p style="margin: 0"> </p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="padding-left: 6; width: 7%"> </td>
<td style="padding-left: 6; width: 2%"> </td>
<td style="padding-left: 6; width: 7%"> </td>
<td style="padding-left: 6; width: 2%"> </td>
<td style="padding-left: 6; width: 7%"> </td>
<td style="padding-left: 6; width: 2%"> </td>
<td style="padding-left: 6; width: 29%"> </td>
<td style="padding-left: 6; width: 7%"> </td>
<td style="padding-left: 6; width: 6%"> </td>
<td style="padding-left: 6; width: 6%"> </td>
<td style="padding-left: 6; width: 7%"> </td>
<td style="padding-left: 6; width: 2%"> </td>
<td style="padding-left: 6; width: 7%"> </td>
<td style="padding-left: 6; width: 2%"> </td>
<td style="padding-left: 6; width: 7%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center; padding-left: 6">As reported for the Three Months Ended June 30, 2018</td>
<td style="text-align: center; padding-left: 6"> </td>
<td style="text-align: center; padding-left: 6">Adjustments to reverse effects of ASC 606</td>
<td style="text-align: center; padding-left: 6"> </td>
<td style="text-align: center; padding-left: 6">As adjusted for the Three Months Ended June 30, 2018 to exclude adoption of ASC 606</td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="text-align: center; padding-left: 6">As reported for the Six Months Ended June 30, 2018</td>
<td style="text-align: center; padding-left: 6"> </td>
<td style="text-align: center; padding-left: 6">Adjustments to reverse effects of ASC 606</td>
<td style="text-align: center; padding-left: 6"> </td>
<td style="text-align: center; padding-left: 6">As adjusted for the Six Months Ended June 30, 2018 to exclude adoption of ASC 606</td></tr>
<tr style="vertical-align: bottom">
<td style="color: red; padding-left: 6"> </td>
<td style="color: red; padding-left: 6"> </td>
<td style="color: red; padding-left: 6"> </td>
<td style="color: red; padding-left: 6"> </td>
<td style="color: red; padding-left: 6"> </td>
<td colspan="3" style="white-space: nowrap; padding-left: 6">OPERATING ACTIVITIES</td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="color: red; padding-left: 6"> </td>
<td style="color: red; padding-left: 6"> </td>
<td style="color: red; padding-left: 6"> </td>
<td style="color: red; padding-left: 6"> </td>
<td style="color: red; padding-left: 6"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: right; padding-left: 6">$30,306</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">($1,402)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">$28,904</td>
<td colspan="2" style="text-align: left; padding-left: 6">Net income</td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">$40,788</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">($2,649)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">$38,139</td></tr>
<tr style="vertical-align: bottom">
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td colspan="10" style="text-align: left; padding-left: 6">Adjustments to reconcile net income to net cash provided by operating activities:</td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: right; padding-left: 6"> 17,114</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> 17,114</td>
<td style="text-align: right; padding-left: 6"> </td>
<td colspan="2" style="text-align: left; padding-left: 6">Depreciation</td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> 35,416</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> 35,416</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right; padding-left: 6"> 2,559</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> 2,559</td>
<td style="text-align: right; padding-left: 6"> </td>
<td colspan="2" style="padding-left: 6">Amortization</td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> 5,205</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> 5,205</td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: right; padding-left: 6">   (854)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">   (854)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td colspan="3" style="padding-left: 6">Change in other noncurrent liabilities</td>
<td style="padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (1,231)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (1,231)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right; padding-left: 6">  (6,118)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">   (507)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (6,625)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td colspan="3" style="padding-left: 6">Change in deferred taxes and other liabilities</td>
<td style="padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (6,902)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (1,108)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (8,010)</td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: right; padding-left: 6">  853</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  853</td>
<td style="text-align: right; padding-left: 6"> </td>
<td colspan="4" style="text-align: left; padding-left: 6">Provision for write-off of property, plant and equipment</td>
<td style="text-align: right; padding-left: 6"> 1,124</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> 1,124</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right; padding-left: 6">  154</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  154</td>
<td style="text-align: right; padding-left: 6"> </td>
<td colspan="2" style="padding-left: 6">Non-cash interest expense</td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  154</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  154</td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: right; padding-left: 6"> 1,047</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> 1,047</td>
<td style="text-align: right; padding-left: 6"> </td>
<td colspan="4" style="text-align: left; padding-left: 6">Compensation and benefits paid or payable in Class A Common Stock</td>
<td style="text-align: right; padding-left: 6"> 1,336</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> 1,336</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right; padding-left: 6">  34</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  34</td>
<td style="text-align: right; padding-left: 6"> </td>
<td colspan="4" style="padding-left: 6">Fair valule adjustment on foreign currency option</td>
<td style="text-align: right; padding-left: 6">  71</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  71</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: left; padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> </td>
<td colspan="10" style="padding-left: 6"> Changes in operating assets and liabilities that (used)/provided cash: </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right; padding-left: 6">  (12,903)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (14,277)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (27,180)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td colspan="2" style="padding-left: 6">Accounts receivable</td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (44,370)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (3,727)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (48,097)</td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: right; padding-left: 6">  (13,877)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> 13,877</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td colspan="2" style="padding-left: 6">Contract assets</td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (11,761)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> 11,761</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right; padding-left: 6">  (1,371)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> 2,304</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  933</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: left; padding-left: 6">Inventories</td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (10,615)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (4,222)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (14,837)</td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: right; padding-left: 6">  (1,157)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (1,157)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td colspan="3" style="padding-left: 6">Prepaid expenses and other current assets</td>
<td style="padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (5,220)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (5,220)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right; padding-left: 6">  (5)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (5)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td colspan="3" style="padding-left: 6">Income taxes prepaid and receivable</td>
<td style="padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  97</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  97</td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: right; padding-left: 6"> 11,420</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> 11,420</td>
<td style="text-align: right; padding-left: 6"> </td>
<td colspan="2" style="padding-left: 6">Accounts payable</td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> 8,882</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> 8,882</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right; padding-left: 6"> 5,853</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">   5</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> 5,858</td>
<td style="text-align: right; padding-left: 6"> </td>
<td colspan="2" style="padding-left: 6">Accrued liabilities</td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> 4,668</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">   (55)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> 4,613</td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="text-align: right; padding-left: 6"> 10,020</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> 10,020</td>
<td style="text-align: right; padding-left: 6"> </td>
<td colspan="2" style="padding-left: 6">Income taxes payable</td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> 6,589</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> 6,589</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right; padding-left: 6">  (1,643)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (1,643)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td colspan="2" style="text-align: left; padding-left: 6">Noncurrent receivables</td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (4,170)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (4,170)</td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">  (5,745)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">  (5,745)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="padding-left: 6">Other, net</td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">  (3,321)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">  (3,321)</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">35,687</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">35,687</td>
<td style="padding-left: 6"> </td>
<td colspan="3" style="text-align: left; padding-left: 6">Net cash provided by operating activities</td>
<td style="padding-left: 6"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">16,740</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">16,740</td></tr>
<tr style="vertical-align: bottom">
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="border-top: Black 0.5pt solid; border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">(23,375)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-top: Black 0.5pt solid; border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">  - </td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-top: Black 0.5pt solid; border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">(23,375)</td>
<td style="padding-left: 6"> </td>
<td colspan="3" style="text-align: left; padding-left: 6">Net cash used in investing activities</td>
<td style="padding-left: 6"> </td>
<td style="border-top: Black 0.5pt solid; border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">(39,175)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-top: Black 0.5pt solid; border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">  - </td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-top: Black 0.5pt solid; border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">(39,175)</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt; padding-left: 6">(1,112)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt; padding-left: 6">  - </td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt; padding-left: 6">(1,112)</td>
<td style="padding-left: 6"> </td>
<td colspan="3" style="text-align: left; padding-left: 6">Net cash used in financing activities</td>
<td style="padding-left: 6"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt; padding-left: 6">(3,570)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt; padding-left: 6">  - </td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt; padding-left: 6">(3,570)</td></tr>
<tr style="vertical-align: bottom">
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">  (7,882)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">  (7,882)</td>
<td colspan="5" style="padding-left: 6">Effect of exchange rate changes on cash and cash equivalents</td>
<td style="border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">  (2,978)</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">  -</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: black 0.5pt solid; text-align: right; padding-left: 6">  (2,978)</td></tr>
<tr style="vertical-align: bottom">
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td>
<td style="color: red; text-align: right; padding-left: 6"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: right; padding-left: 6"> 3,318</td>
<td style="text-align: center; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  -</td>
<td style="text-align: center; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6"> 3,318</td>
<td colspan="4" style="text-align: left; padding-left: 6">(Decrease)/increase in cash and cash equivalents</td>
<td style="padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (28,983)</td>
<td style="text-align: center; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  - </td>
<td style="text-align: center; padding-left: 6"> </td>
<td style="text-align: right; padding-left: 6">  (28,983)</td></tr>
<tr style="vertical-align: bottom; background-color: #BFBFBF">
<td style="border-bottom: Black 0.5pt solid; text-align: right; padding-left: 6">  151,426</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right; padding-left: 6">  - </td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right; padding-left: 6">  151,426</td>
<td colspan="5" style="padding-left: 6">Cash and cash equivalents at beginning of period</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right; padding-left: 6">  183,727</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right; padding-left: 6">  - </td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right; padding-left: 6">  183,727</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: black 2pt double; text-align: right; padding-left: 6">$154,744</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: black 2pt double; text-align: right; padding-left: 6"> $   - </td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: black 2pt double; text-align: right; padding-left: 6">$154,744</td>
<td colspan="4" style="padding-left: 6">Cash and cash equivalents at end of period</td>
<td style="padding-left: 6"> </td>
<td style="border-bottom: black 2pt double; text-align: right; padding-left: 6">$154,744</td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: black 2pt double; text-align: right; padding-left: 6"> $   - </td>
<td style="text-align: right; padding-left: 6"> </td>
<td style="border-bottom: black 2pt double; text-align: right; padding-left: 6">$154,744</td></tr>
</table>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in; text-indent: 0in"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0in"><b><i> </i></b></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0in"><b><i>3. Reportable Segments</i></b></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">As described in Note 2, the
Company adopted the provisions of ASC 606, “Revenue from contracts with customers”, effective January 1, 2018,
using the cumulative effect method for transition. Periods prior to 2018 have not been restated. The following tables show
data by reportable segment, reconciled to consolidated totals, and the impact that ASC 606 had on the three- and six-month
periods ended June 30, 2018:</p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0in"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0in"></p>
<table border="0" cellpadding="0" cellspacing="0" align="center" style="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="width: 47%"> </td>
<td style="width: 17%"> </td>
<td style="font-weight: bold; width: 15%"> </td>
<td style="font-weight: bold; width: 1%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 20%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-top: Black 0.5pt solid"> </td>
<td colspan="2" style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">Three months ended June 30,</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center"> </td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">Three months ended <br />
June 30, 2018</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: justify">(in thousands)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; padding-left: 55pt">2018</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; padding-left: 55pt">2017</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">Increase/(decrease)<br />
attributable to application of ASC 606</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: justify">Net sales</td>
<td style="font-weight: bold"> </td>
<td> </td>
<td> </td>
<td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Machine Clothing</td>
<td style="font-weight: bold; text-align: right">$162,635</td>
<td style="text-align: right">$146,572</td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right">$857</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify">Albany Engineered Composites</td>
<td style="font-weight: bold; text-align: right">        93,590</td>
<td style="text-align: right">      68,999</td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right">             (1,257)</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify; border-top-color: Black; border-top-width: 0.5pt">Consolidated total</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$256,225</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$215,571</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right"> </td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">($400)</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: justify">Operating income/(loss)</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Machine Clothing </td>
<td style="font-weight: bold; text-align: right">$50,843</td>
<td style="text-align: right">$38,425</td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right">$1,786</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Albany Engineered Composites </td>
<td style="font-weight: bold; text-align: right">          4,092</td>
<td style="text-align: right">     (17,828)</td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right">                 123</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify">Corporate expenses</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">       (12,251)</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">     (10,742)</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Operating income </td>
<td style="font-weight: bold; text-align: right">$42,684</td>
<td style="text-align: right">$9,855</td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right">$1,909</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Reconciling items:</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">Interest income</td>
<td style="font-weight: bold; text-align: right">            (438)</td>
<td style="text-align: right">          (340)</td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right">                   -   </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">Interest expense</td>
<td style="font-weight: bold; text-align: right">          5,059</td>
<td style="text-align: right">        4,625</td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right">                   -   </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; border-bottom: Black 0.5pt solid; text-align: left">Other expense, net</td>
<td style="font-weight: bold; text-align: right">             726</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">        2,558</td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right">                   -   </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify">Income before income taxes</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$37,337</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">$3,012</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right"> </td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$1,909</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0in"></p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0in"></p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0in"></p>
<table border="0" cellpadding="0" cellspacing="0" align="center" style="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="width: 47%"> </td>
<td style="width: 17%"> </td>
<td style="font-weight: bold; width: 15%"> </td>
<td style="font-weight: bold; width: 1%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 20%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-top: Black 0.5pt solid"> </td>
<td colspan="2" style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">Six months ended June 30,</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center"> </td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">Six months ended <br />
June 30, 2018</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: justify">(in thousands)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; padding-left: 55pt">2018</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; padding-left: 44pt">2017</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">Increase/(decrease)<br />
attributable to application of ASC 606</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: justify">Net sales</td>
<td style="font-weight: bold"> </td>
<td> </td>
<td> </td>
<td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Machine Clothing</td>
<td style="font-weight: bold; text-align: right">$310,786</td>
<td style="text-align: right">$289,399</td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right">$5,068</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify">Albany Engineered Composites</td>
<td style="font-weight: bold; text-align: right">      175,420</td>
<td style="text-align: right">     125,449</td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right">              2,966</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify; border-top-color: Black; border-top-width: 0.5pt">Consolidated total</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$486,206</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$414,848</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right"> </td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$8,034</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: justify">Operating income/(loss)</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Machine Clothing </td>
<td style="font-weight: bold; text-align: right">$81,613</td>
<td style="text-align: right">$76,688</td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right">$2,765</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Albany Engineered Composites </td>
<td style="font-weight: bold; text-align: right">          6,366</td>
<td style="text-align: right">     (22,942)</td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right">                 992</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify">Corporate expenses</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">       (24,464)</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">     (21,213)</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">                   -   </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Operating income </td>
<td style="font-weight: bold; text-align: right">$63,515</td>
<td style="text-align: right">$32,533</td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right">$3,757</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Reconciling items:</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">Interest income</td>
<td style="font-weight: bold; text-align: right">            (820)</td>
<td style="text-align: right">          (447)</td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right">                   -   </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">Interest expense</td>
<td style="font-weight: bold; text-align: right">          9,729</td>
<td style="text-align: right">        9,060</td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right">                   -   </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; border-bottom: Black 0.5pt solid; text-align: left">Other expense, net</td>
<td style="font-weight: bold; text-align: right">          2,178</td>
<td style="text-align: right">        3,384</td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right">                   -   </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify">Income before income taxes</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$52,428</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$20,536</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right"> </td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$3,757</td></tr>
</table>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0in"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">At the January 1, 2018 date of adoption
of ASC 606, Machine Clothing assets increased by $22 million, and AEC assets decreased by $13 million. Except for the effect of
adopting ASC 606, there were no material changes in the total assets of the reportable segments for the six months ended June 30,
2018.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">As described in Note 4, effective
January 1, 2018, the Company adopted an accounting update that affects the classification of components of pension and postretirement
benefit costs. As a result of adopting that update, some costs that were previously included in operating expenses shall now be
included in Other expense, net. Periods prior to 2018 have been restated to conform to the current year presentation (see Note
4).</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The Albany Engineered Composites
(AEC) segment, including Albany Safran Composites, LLC (ASC), in which our customer SAFRAN Group (Safran) owns a 10 percent noncontrolling
interest, provides highly engineered, advanced composite structures to customers in the aerospace and defense industries. AEC’s
largest program relates to CFM International’s LEAP engine. Under this program, AEC through ASC, is the exclusive supplier
of advanced composite fan blades and cases under a long-term supply contract. The manufacturing spaces used for the production
of parts under the long-term supply agreement are owned by Safran, and leased to the Company at either market rent or a minimal
cost. All lease expense is reimbursable by Safran to the Company due to the cost-plus nature of the supply agreement. AEC net sales
to Safran were $88.4 million in the first six months of 2018 and $56.8 million in the first six months of 2017. The total of Accounts
receivables, Contract assets and Noncurrent receivables due from Safran amounted to $96.8 million and $58.6 million as of June
30, 2018 and December 31, 2017, respectively.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">In the second quarter of 2017, the
Company recorded a charge to Cost of goods sold of approximately $15.8 million associated with revisions in the estimated profitability
of two AEC contracts. The charge was principally due to second-quarter 2017 downward revisions of estimated customer demand for
the components manufactured by AEC related to the BR 725 and A380 programs. The charge included a $4.0 million write-off of program
inventory costs, and a reserve for future losses of $11.8 million, which is included in Accrued liabilities in the Consolidated
Balance Sheets.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt; text-indent: 0.5in">The table below presents restructuring
costs by reportable segment (also see Note 5):</p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0.5in"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt; text-indent: 0in"></p>
<table border="0" cellpadding="0" cellspacing="0" align="center" style="width: 75%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; border-bottom: Black 1pt solid; width: 45%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; border-bottom: Black 1pt solid; width: 15%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; border-bottom: Black 1pt solid; width: 12%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; border-bottom: Black 1pt solid; width: 14%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; border-bottom: Black 1pt solid; width: 14%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Three months ended June 30,</td>
<td colspan="2" style="font-weight: bold; text-align: center">Six months ended <br />
June 30,</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: justify">(in thousands)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2018</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2017</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2018</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2017</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Machine Clothing </td>
<td style="font-weight: bold; text-align: right">$1,800</td>
<td style="text-align: right">$805</td>
<td style="font-weight: bold; text-align: right">$10,152</td>
<td style="text-align: right">$916</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Albany Engineered Composites </td>
<td style="font-weight: bold; text-align: right">             558</td>
<td style="text-align: right">      1,231</td>
<td style="font-weight: bold; text-align: right">           779</td>
<td style="text-align: right">        3,801</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify">Corporate expenses</td>
<td style="font-weight: bold; text-align: right">             231</td>
<td style="text-align: right">           -   </td>
<td style="font-weight: bold; text-align: right">           231</td>
<td style="text-align: right">             -   </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 1pt solid; text-align: justify"> <font style="font: normal 10pt Arial, Helvetica, Sans-Serif">Total  </font></td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 1pt solid; text-align: right">$2,589</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 1pt solid; text-align: right">$2,036</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 1pt solid; text-align: right">$11,162</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 1pt solid; text-align: right">$4,717</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0in"><b><i>9. Noncontrolling Interest</i></b></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The table below presents a
reconciliation of income attributable to the noncontrolling interest and noncontrolling equity in the
Company’s subsidiary Albany Safran Composites, LLC, and the impact that the ASC 606 revenue standard had on Company
results for the first six months of 2018, included in the consolidated financial statements:</p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0in"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0in"><b><i> </i></b></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0in"><b></b></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="font-size: 11pt; width: 62%"> </td>
<td style="font-size: 11pt; width: 11%"> </td>
<td style="font-size: 11pt; width: 9%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-size: 11pt; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid"> </td>
<td colspan="2" style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">Six months ended <br />
June 30,</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; border-top-color: Black; border-top-width: 0.5pt">(in thousands)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; border-top-color: Black; border-top-width: 0.5pt">2018</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; border-top-color: Black; border-top-width: 0.5pt">2017</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Net income of Albany Safran Composites (ASC)</td>
<td style="font-weight: bold; text-align: right"> $2,419</td>
<td style="text-align: right"> $3,029</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: left">Less: Return attributable to the Company's preferred holding</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">           635</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">        515</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Net income of ASC available for common ownership</td>
<td style="font-weight: bold; text-align: right"> $1,784</td>
<td style="text-align: right"> $2,514</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: left">Ownership percentage of noncontrolling shareholder</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">10%</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">10%</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; border-top-color: Black; border-top-width: 0.5pt">Net income attributable to noncontrolling interest</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt"> $178</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt"> $251</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Noncontrolling interest, beginning of year</td>
<td style="font-weight: bold; text-align: right"> $3,247</td>
<td style="text-align: right"> $3,767</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Decrease attributable to application of ASC 606</td>
<td style="font-weight: bold; text-align: right">          (327)</td>
<td style="text-align: right">           -   </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Net income attributable to noncontrolling interest</td>
<td style="font-weight: bold; text-align: right">           178</td>
<td style="text-align: right">        251</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: left">Changes in other comprehensive income attributable to noncontrolling interest</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">               4</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">          13</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; border-top-color: Black; border-top-width: 0.5pt">Noncontrolling interest</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt"> $3,102</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt"> $4,031</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0in"><b> </b></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The table below presents a
reconciliation of income attributable to the noncontrolling interest and noncontrolling equity in the
Company’s subsidiary Albany Safran Composites, LLC, and the impact that the ASC 606 revenue standard had on Company
results for the first six months of 2018, included in the consolidated financial statements:</p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0in"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0in"><b><i> </i></b></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0in"><b></b></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="font-size: 11pt; width: 62%"> </td>
<td style="font-size: 11pt; width: 11%"> </td>
<td style="font-size: 11pt; width: 9%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-size: 11pt; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid"> </td>
<td colspan="2" style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">Six months ended <br />
June 30,</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; border-top-color: Black; border-top-width: 0.5pt">(in thousands)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; border-top-color: Black; border-top-width: 0.5pt">2018</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; border-top-color: Black; border-top-width: 0.5pt">2017</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Net income of Albany Safran Composites (ASC)</td>
<td style="font-weight: bold; text-align: right"> $2,419</td>
<td style="text-align: right"> $3,029</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: left">Less: Return attributable to the Company's preferred holding</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">           635</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">        515</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Net income of ASC available for common ownership</td>
<td style="font-weight: bold; text-align: right"> $1,784</td>
<td style="text-align: right"> $2,514</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: left">Ownership percentage of noncontrolling shareholder</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">10%</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">10%</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; border-top-color: Black; border-top-width: 0.5pt">Net income attributable to noncontrolling interest</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt"> $178</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt"> $251</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Noncontrolling interest, beginning of year</td>
<td style="font-weight: bold; text-align: right"> $3,247</td>
<td style="text-align: right"> $3,767</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Decrease attributable to application of ASC 606</td>
<td style="font-weight: bold; text-align: right">          (327)</td>
<td style="text-align: right">           -   </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Net income attributable to noncontrolling interest</td>
<td style="font-weight: bold; text-align: right">           178</td>
<td style="text-align: right">        251</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: left">Changes in other comprehensive income attributable to noncontrolling interest</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">               4</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">          13</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; border-top-color: Black; border-top-width: 0.5pt">Noncontrolling interest</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt"> $3,102</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt"> $4,031</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0in"><b> </b></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0in"><b><i>11. Accounts Receivable</i></b></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">Accounts receivable includes trade
receivables and bank promissory notes. As a result of adopting ASC 606, Revenue in excess of progress billings on long-term contracts
in the Albany Engineered Composites segment was reclassified to Contract assets in 2018. Including that reclassification, the cumulative
effect from the adoption of ASC 606 was an increase to Accounts receivable of $7.7 million as Accounts receivable recorded in the
cumulative adjustment exceeded that reclassification.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The Company maintains allowances for
doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. The Company determines
the allowance based on historical write-off experience, customer-specific facts and economic conditions. If the financial condition
of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional
allowances may be required.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">As of June 30, 2018 and December
31, 2017, Accounts receivable consisted of the following:</p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0in"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 66%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 17%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 17%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 1pt solid; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><b>(in thousands)  </b></font></td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 1pt solid; text-align: center">June 30,<br />
 2018</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 1pt solid; text-align: center">December 31,<br />
 2017</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Trade and other accounts receivable</td>
<td style="font-weight: bold; text-align: right">$238,763</td>
<td style="text-align: right">$152,375</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Bank promissory notes</td>
<td style="font-weight: bold; text-align: right">18,070</td>
<td style="text-align: right">20,255</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Revenue in excess of progress billings</td>
<td style="font-weight: bold; text-align: right">                      -</td>
<td style="text-align: right">37,964</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify">Allowance for doubtful accounts</td>
<td style="font-weight: bold; text-align: right">              (7,351)</td>
<td style="text-align: right">              (7,919)</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify; border-top-color: Black; border-top-width: 0.5pt">Total accounts receivable</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$249,482</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$202,675</td></tr>
</table>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0in"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">In connection with certain sales
in Asia, the Company accepts a bank promissory note as customer payment. The notes may be presented for payment at maturity, which
is less than one year.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The Company also has Noncurrent
receivables in the AEC segment that represent revenue earned which has extended payment terms. The Noncurrent receivables will
be invoiced to the customer, with 2% interest, over a 10-year period starting in 2020.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">As of June 30, 2018 and December
31, 2017, Noncurrent receivables consisted of the following:</p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0in"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 66%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 17%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 17%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font: bold 10pt Arial, Helvetica, Sans-Serif; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: justify"><font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><b>(in thousands)  </b></font></td>
<td style="font: bold 10pt Arial, Helvetica, Sans-Serif; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">June 30,<br />
 2018</td>
<td style="font: bold 10pt Arial, Helvetica, Sans-Serif; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">December 31,<br />
 2017</td></tr>
<tr style="vertical-align: bottom">
<td style="font: 10pt Arial, Helvetica, Sans-Serif; border-bottom: Black 0.5pt solid; text-align: justify; border-top-color: Black; border-top-width: 0.5pt">Noncurrent receivables</td>
<td style="font: bold 10pt Arial, Helvetica, Sans-Serif; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">$36,981</td>
<td style="font: 10pt Arial, Helvetica, Sans-Serif; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">$32,811</td></tr>
</table>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0in"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0in"><b><i> </i></b></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0"><b><i>14. Goodwill and Other Intangible Assets
</i></b></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0in"><b> </b></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">Goodwill and intangible assets with
indefinite useful lives are not amortized, but are tested for impairment at least annually. Goodwill represents the excess of the
purchase price over the fair value of the net tangible and identifiable intangible assets acquired in each business combination.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">Determining the fair value of a reporting
unit requires the use of significant estimates and assumptions, including revenue growth rates, operating margins, discount rates,
and future market conditions, among others. Goodwill and other long-lived assets are reviewed for impairment whenever events, such
as significant changes in the business climate, plant closures, changes in product offerings, or other circumstances indicate that
the carrying amount may not be recoverable.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">To determine fair value, we
utilize two market-based approaches and an income approach. Under the market-based approaches, we utilize information
regarding the Company as well as publicly available industry information to determine earnings multiples and sales multiples.
Under the income approach, we determine fair value based on estimated future cash flows of each reporting unit, discounted by
an estimated weighted-average cost of capital, which reflects the overall level of inherent risk of a reporting unit and the
rate of return an outside investor would expect to earn.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">In the second quarter of 2018, the
Company applied the qualitative assessment approach in performing its annual evaluation of goodwill and concluded that no impairment
provision was required. There were no amounts at risk due to the large spread between the fair, and carrying value, of each reporting
unit.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">We are continuing to amortize certain
patents, trade names, customer relationships, customer contracts and technology assets that have finite lives. The gross carrying
value, accumulated amortization and net values of intangible assets and goodwill as of June 30, 2018 and December 31, 2017, were
as follows:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 0.5in; text-indent: 0in">	
	</p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in; text-indent: 0in"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="width: 35%"> </td>
<td style="width: 20%"> </td>
<td style="width: 12%"> </td>
<td style="width: 18%"> </td>
<td style="width: 15%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid">As of June 30, 2018<br />
(in thousands)</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center"> Weighted average amortization life in years</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">Gross carrying amount</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">Accumulated amortization</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">Net carrying amount</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Amortized intangible assets:</td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">AEC trade names</td>
<td style="text-align: center">15</td>
<td style="text-align: right">$140</td>
<td style="text-align: right">($127)</td>
<td style="text-align: right">$13</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">AEC technology</td>
<td style="text-align: center">15</td>
<td style="text-align: right">370</td>
<td style="text-align: right">(302)</td>
<td style="text-align: right">68</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">Customer relationships</td>
<td style="text-align: center">15</td>
<td style="text-align: right">        48,421</td>
<td style="text-align: right">(7,269)</td>
<td style="text-align: right">41,152</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">Customer contracts</td>
<td style="text-align: center">6</td>
<td style="text-align: right">        17,471</td>
<td style="text-align: right">(6,559)</td>
<td style="text-align: right">10,912</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; border-bottom: Black 0.5pt solid; text-align: left">Other intangibles</td>
<td style="text-align: center">5</td>
<td style="text-align: right">            322</td>
<td style="text-align: right">(145)</td>
<td style="text-align: right">177</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify; border-top-color: Black; border-top-width: 0.5pt">Net amortized intangible assets</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: justify"> </td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$66,724</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">($14,402)</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$52,322</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td style="text-align: right">       </td>
<td style="text-align: right">       </td>
<td style="text-align: right">       </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Unamortized intangible assets:</td>
<td style="text-align: justify"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">MC Goodwill</td>
<td style="padding-left: 18px; text-align: left"> </td>
<td style="text-align: right">$69,744</td>
<td style="text-align: right"> $-</td>
<td style="text-align: right">$69,744</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; border-bottom: Black 0.5pt solid; text-align: left">AEC Goodwill</td>
<td style="padding-left: 18px; border-bottom: Black 0.5pt solid; text-align: left"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">        95,730</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">                          -</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">             95,730</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; border-top-color: Black; border-top-width: 0.5pt">Total unamortized intangible assets:</td>
<td style="border-bottom: Black 0.5pt solid; border-top-color: Black; border-top-width: 0.5pt"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">$165,474</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right"> $-</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">$165,474</td></tr>
</table>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in; text-indent: 0in"></p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in; text-indent: 0in"> </p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in; text-indent: 0in"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 90%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="width: 35%"> </td>
<td style="width: 20%"> </td>
<td style="width: 12%"> </td>
<td style="width: 18%"> </td>
<td style="width: 15%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid">As of December 31, 2017<br />
(in thousands)</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">Weighted average amortization life in years</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">Gross carrying amount</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">Accumulated amortization</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">Net carrying amount</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Amortized intangible assets:</td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">AEC trade names</td>
<td style="text-align: center">15</td>
<td style="text-align: right">$140</td>
<td style="text-align: right">($125)</td>
<td style="text-align: right">$15</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">AEC technology</td>
<td style="text-align: center">15</td>
<td style="text-align: right">370</td>
<td style="text-align: right">(290)</td>
<td style="text-align: right">                   80</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">Customer relationships</td>
<td style="text-align: center">15</td>
<td style="text-align: right">        48,421</td>
<td style="text-align: right">(5,654)</td>
<td style="text-align: right">             42,767</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">Customer contracts</td>
<td style="text-align: center">6</td>
<td style="text-align: right">        17,471</td>
<td style="text-align: right">(5,102)</td>
<td style="text-align: right">             12,369</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; border-bottom: Black 0.5pt solid; text-align: left">Other intangibles</td>
<td style="text-align: center">5</td>
<td style="text-align: right">            322</td>
<td style="text-align: right">(112)</td>
<td style="text-align: right">                  210</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify; border-top-color: Black; border-top-width: 0.5pt">Net amortized intangible assets</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: justify"> </td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$66,724</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">($11,283)</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$55,441</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td style="text-align: right">       </td>
<td style="text-align: right">       </td>
<td style="text-align: right">       </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Unamortized intangible assets:</td>
<td style="text-align: justify"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">MC Goodwill</td>
<td style="padding-left: 18px; text-align: left"> </td>
<td style="text-align: right">$71,066</td>
<td style="text-align: right"> $-</td>
<td style="text-align: right">$71,066</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; border-bottom: Black 0.5pt solid; text-align: left">AEC Goodwill</td>
<td style="padding-left: 18px; border-bottom: Black 0.5pt solid; text-align: left"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">        95,730</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">                          -</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">             95,730</td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid">Total unamortized intangible assets:</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">$166,796</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right"> $-</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">$166,796</td></tr>
</table>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in; text-indent: 0in"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 0.5in; text-indent: 0in"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 0.5in; text-indent: 0in"> </p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The changes in intangible assets,
net and goodwill from December 31, 2017 to June 30, 2018, were as follows:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in"></p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt; text-indent: 0.5in"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 90%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="width: 37%"> </td>
<td style="width: 16%"> </td>
<td style="width: 17%"> </td>
<td style="width: 15%"> </td>
<td style="width: 15%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: justify">(in thousands)</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">December
<br />
31, 2017</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">Amortization</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">Currency Translation</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">June 30,
2018</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td>
<td> </td>
<td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Amortized intangible assets:</td>
<td> </td>
<td> </td>
<td> </td>
<td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">AEC trade names</td>
<td style="text-align: right">$15</td>
<td style="text-align: right"> $(2)</td>
<td style="text-align: right"> $-</td>
<td style="font-weight: bold; text-align: right">$13</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">AEC technology</td>
<td style="text-align: right">80</td>
<td style="text-align: right">(12)</td>
<td style="text-align: right">                     -</td>
<td style="font-weight: bold; text-align: right">68</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">Customer relationships</td>
<td style="text-align: right">             42,767</td>
<td style="text-align: right">(1,615)</td>
<td style="text-align: right">                     -</td>
<td style="font-weight: bold; text-align: right">41,152</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">Customer contracts</td>
<td style="text-align: right">             12,369</td>
<td style="text-align: right">(1,457)</td>
<td style="text-align: right">                     -</td>
<td style="font-weight: bold; text-align: right">10,912</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; border-bottom: Black 0.5pt solid; text-align: left">Other intangibles</td>
<td style="text-align: right">                  210</td>
<td style="text-align: right">(33)</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">                     -</td>
<td style="font-weight: bold; text-align: right">177</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: justify; border-top-color: Black; border-top-width: 0.5pt">Net amortized intangible assets</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$55,441</td>
<td style="border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">($3,119)</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right"> $-</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">$52,322</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="text-align: right">       </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right">       </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Unamortized intangible assets:</td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">MC Goodwill</td>
<td style="text-align: right">$71,066</td>
<td style="text-align: right"> $-</td>
<td style="text-align: right"> $(1,322)</td>
<td style="font-weight: bold; text-align: right">$69,744</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; border-bottom: Black 0.5pt solid; text-align: left">AEC Goodwill</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">             95,730</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">                       -</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">                     -</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">95,730</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; border-top-color: Black; border-top-width: 0.5pt">Total unamortized intangible assets:</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">$166,796</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right"> $-</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right"> $(1,322)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right; border-top-color: Black; border-top-width: 0.5pt">$165,474</td></tr>
</table>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt; text-indent: 0.5in"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">Estimated amortization expense of
intangibles for the years ending December 31, 2018 through 2022, is as follows:</p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0in"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 40%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif; margin-left: 0.5in">
<tr style="vertical-align: bottom">
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 44%"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif; width: 56%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center"> </td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; text-align: right">Annual amortization</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">Year</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">(in thousands)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center">2018</td>
<td style="text-align: right">$6,234</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center">2019</td>
<td style="text-align: right">                        6,234</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center">2020</td>
<td style="text-align: right">                        6,234</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center">2021</td>
<td style="text-align: right">                        6,163</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: center">2022</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">                        3,949</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0in"><b><i>16. Fair-Value Measurements</i></b></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 12pt; margin-right: 0; margin-bottom: 0; text-indent: 0.5in">Fair value is defined as the exchange
price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous
market for the asset or liability in an orderly transaction between market participants at the measurement date. Accounting principles
establish a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use
of unobservable inputs by requiring that the most observable inputs be used when available. Level 3 inputs are unobservable data
points for the asset or liability, and include situations in which there is little, if any, market activity for the asset or liability.
We had no Level 3 financial assets or liabilities at December 31, 2017 or June 30, 2018.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 12pt; margin-right: 0; margin-bottom: 0; text-indent: 0.5in">The following table presents the
fair-value hierarchy for our Level 1 and Level 2 financial and non-financial assets and liabilities, which are measured at fair
value on a recurring basis:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0in"> </p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 12pt 0 0 0.5in; text-indent: 0in"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="border-top: Black 0.5pt solid"> </td>
<td style="border-top: Black 0.5pt solid"> </td>
<td colspan="4" style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">June 30, 2018</td>
<td colspan="4" style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">December 31, 2017</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="4" style="font-weight: bold; text-align: center"> </td>
<td colspan="4" style="font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; width: 43%"> </td>
<td style="font-weight: bold; width: 8%"> </td>
<td style="font-weight: bold; text-align: center; width: 11%">Quoted prices in active markets</td>
<td style="font-weight: bold; text-align: center; width: 2%"> </td>
<td style="font-weight: bold; text-align: center; width: 10%">Significant other observable inputs</td>
<td style="font-weight: bold; text-align: center; width: 2%"> </td>
<td style="text-align: center; width: 10%">Quoted prices in active markets</td>
<td style="text-align: center; width: 1%"> </td>
<td style="text-align: center; width: 11%">Significant other observable inputs</td>
<td style="text-align: center; width: 2%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: justify">(in thousands)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">(Level 1)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">(Level 2)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: center">(Level 1)</td>
<td style="border-bottom: Black 0.5pt solid; text-align: center"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: center">(Level 2)</td>
<td style="border-bottom: Black 0.5pt solid; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: justify">Fair Value</td>
<td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-style: italic; text-align: justify">Assets:</td>
<td> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">Cash equivalents</td>
<td> </td>
<td style="font-weight: bold; text-align: right"> $18,728</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> $-</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> $13,601</td>
<td style="text-align: right"> </td>
<td style="text-align: right"> $-</td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">Prepaid expenses and other current assets:</td>
<td> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: left"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">   Foreign currency options</td>
<td> </td>
<td style="font-weight: bold; text-align: right">                 41</td>
<td style="text-align: left"> </td>
<td style="font-weight: bold; text-align: right">                -   </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif"> </td>
<td style="text-align: right">                -   </td>
<td style="text-align: center"> </td>
<td style="text-align: right">                 -   </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; font-style: italic; text-align: left">Other Assets:</td>
<td> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 36px; text-align: left">Common stock of unaffiliated foreign public company <font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><sup>(a)</sup></font></td>
<td> </td>
<td style="font-weight: bold; text-align: right">               962</td>
<td style="text-align: left"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif"> </td>
<td style="text-align: right">              999</td>
<td style="text-align: center"> </td>
<td style="text-align: right">                 -   </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 36px; text-align: left; padding-bottom: 2pt">Interest rate swaps<sup> </sup></td>
<td> </td>
<td style="font-weight: bold; text-align: right">                 -   </td>
<td style="text-align: left"> </td>
<td style="font-weight: bold; text-align: right">           8,985</td>
<td style="text-align: left; padding-bottom: 3pt"><sup>(b)</sup></td>
<td style="text-align: right">                -   </td>
<td style="text-align: right"> </td>
<td style="text-align: right">              313</td>
<td style="text-align: left; padding-bottom: 3pt"><sup>(c)</sup></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 36px; text-align: left; border-bottom: Black 1pt solid"> </td>
<td style="border-bottom: Black 1pt solid"> </td>
<td style="font-weight: bold; text-align: right; border-bottom: Black 1pt solid"> </td>
<td style="text-align: left; border-bottom: Black 1pt solid"> </td>
<td style="font-weight: bold; text-align: right; border-bottom: Black 1pt solid"> </td>
<td style="text-align: left; border-bottom: Black 1pt solid"> </td>
<td style="text-align: right; border-bottom: Black 1pt solid"> </td>
<td style="text-align: right; border-bottom: Black 1pt solid"> </td>
<td style="text-align: right; border-bottom: Black 1pt solid"> </td>
<td style="text-align: left; border-bottom: Black 1pt solid"> </td></tr>
</table>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 12pt 0 0 0.5in; text-indent: 0in"></p>
<p style="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 1in; text-indent: 0in"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 10pt"><tr style="vertical-align: top">
<td style="width: 0.75in"></td><td style="width: 0.25in"><font style="font: 8pt Arial, Helvetica, Sans-Serif">(a)</font></td><td><font style="font: 8pt Arial, Helvetica, Sans-Serif">Original cost basis $0.5 million</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 10pt"><tr style="vertical-align: top">
<td style="width: 0.75in"></td><td style="width: 0.25in"><font style="font: 8pt Arial, Helvetica, Sans-Serif">(b)</font></td><td><font style="font: 8pt Arial, Helvetica, Sans-Serif">Net of $39.8 million receivable floating leg and $30.8 million liability
fixed leg</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 10pt"><tr style="vertical-align: top">
<td style="width: 0.75in"></td><td style="width: 0.25in"><font style="font: 8pt Arial, Helvetica, Sans-Serif">(c)</font></td><td><font style="font: 8pt Arial, Helvetica, Sans-Serif">Net of $34.9 million receivable floating leg and $34.6 million liability
fixed leg</font></td></tr></table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">Cash equivalents include short-term
securities that are considered to be highly liquid and easily tradable. These securities are valued using inputs observable in
active markets for identical securities.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The common stock of the unaffiliated
foreign public company is traded in an active market exchange. The shares are measured at fair value using closing stock prices
and are recorded in the Consolidated Balance Sheets as Other assets. The securities are classified as available for sale, and as
a result any unrealized gain or loss is recorded in the Shareholders’ Equity section of the Consolidated Balance Sheets rather
than in the Consolidated Statements of Income. When the security is sold or impaired, gains and losses are reported on the Consolidated
Statements of Income. Investments are considered to be impaired when a decline in fair value is judged to be other than temporary.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 12pt 0 0 0.5in; text-indent: 0.5in"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 12pt 0 0; text-indent: 0.5in">We operate our business in many
regions of the world, and currency rate movements can have a significant effect on operating results. Foreign currency instruments
are entered into periodically, and consist of foreign currency option contracts and forward contracts that are valued using quoted
prices in active markets obtained from independent pricing sources. These instruments are measured using market foreign exchange
prices and are recorded in the Consolidated Balance Sheets as Other current assets and Accounts payable, as applicable. Changes
in fair value of these instruments are recorded as gains or losses within Other expense, net.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 12pt 0 0; text-indent: 0.5in">When exercised, the foreign currency
instruments are net settled with the same financial institution that bought or sold them. For all positions, whether options or
forward contracts, there is risk from the possible inability of the financial institution to meet the terms of the contracts and
the risk of unfavorable changes in interest and currency rates, which may reduce the value of the instruments. We seek to mitigate
risk by evaluating the creditworthiness of counterparties and by monitoring the currency exchange and interest rate markets while
reviewing the hedging risks and contracts to ensure compliance with our internal guidelines and policies.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 12pt 0 0; text-indent: 0.5in">Changes in exchange rates can result
in revaluation gains and losses that are recorded in Selling, General and Administrative expenses or Other expense, net. Revaluation
gains and losses occur when our business units have cash, intercompany (recorded in Other expense, net) or third-party trade (recorded
in Selling, General and Administrative expenses) receivable or payable balances in a currency other than their local reporting
(or functional) currency.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 12pt 0 0; text-indent: 0.5in">Operating results can also be affected
by the translation of sales and costs, for each non-U.S. subsidiary, from the local functional currency to the U.S. dollar. The
translation effect on the Consolidated Statements of Income is dependent on our net income or expense position in each non-U.S.
currency in which we do business. A net income position exists when sales realized in a particular currency exceed expenses paid
in that currency; a net expense position exists if the opposite is true.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 12pt 0 0; text-indent: 0.5in">The interest rate swaps are accounted
for as hedges of future cash flows. The fair value of our interest rate swaps are derived from a discounted cash flow analysis
based on the terms of the contract and the interest rate curve, and is included in Other assets and/or Other noncurrent liabilities
in the Consolidated Balance Sheets. Unrealized gains and losses on the swaps flow through the caption Derivative valuation adjustment
in the Shareholders’ equity section of the Consolidated Balance Sheets, to the extent that the hedges are highly effective.
As of June 30, 2018, these interest rate swaps were determined to be highly effective hedges of interest rate cash flow risk. Any
gains and losses related to the ineffective portion of the hedges will be recognized in the current period in earnings. Amounts
accumulated in Other comprehensive income are reclassified as Interest expense, net when the related interest payments (that is,
the hedged forecasted transactions), and amortization related to the swap buyouts, affect earnings. Interest expense related to
payments under the active swap agreements totaled $0.7 million for the six month period ended June 30, 2018 and $0.5 million for
the six month period ended June 30, 2017. Additionally, non-cash interest expense/(income) related to the amortization of swap
buyouts totaled ($0.4) million for the six month period ended June 30, 2018 and $0.4 million of the six month period ended June
30, 2017.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 12pt 0 0; text-indent: 0.5in">Gains/(losses) related to changes
in fair value of derivative instruments that were recognized in Other expense, net in the Consolidated Statements of Income were
as follows:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0.75in; text-indent: 0in"> </p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0in"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="width: 56%"> </td>
<td style="width: 15%"> </td>
<td style="width: 9%"> </td>
<td style="width: 12%"> </td>
<td style="width: 8%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-top: Black 0.5pt solid"> </td>
<td colspan="2" style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">Three months ended   June  30,</td>
<td colspan="2" style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">Six months ended   June 30,</td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: justify">(in thousands)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2018</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2017</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2018</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">2017</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify">Derivatives not designated as hedging instruments</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; border-bottom: Black 0.5pt solid; text-align: left">Foreign currency options losses</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">($34)</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">($75)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">($71)</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">($129)</td></tr>
</table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 12pt; margin-right: 0; margin-bottom: 0; text-indent: 0.5in">The following table presents the
fair-value hierarchy for our Level 1 and Level 2 financial and non-financial assets and liabilities, which are measured at fair
value on a recurring basis:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0in"> </p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 12pt 0 0 0.5in; text-indent: 0in"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
<td style="border-top: Black 0.5pt solid"> </td>
<td style="border-top: Black 0.5pt solid"> </td>
<td colspan="4" style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">June 30, 2018</td>
<td colspan="4" style="font-weight: bold; border-top: Black 0.5pt solid; text-align: center">December 31, 2017</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td colspan="4" style="font-weight: bold; text-align: center"> </td>
<td colspan="4" style="font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; width: 43%"> </td>
<td style="font-weight: bold; width: 8%"> </td>
<td style="font-weight: bold; text-align: center; width: 11%">Quoted prices in active markets</td>
<td style="font-weight: bold; text-align: center; width: 2%"> </td>
<td style="font-weight: bold; text-align: center; width: 10%">Significant other observable inputs</td>
<td style="font-weight: bold; text-align: center; width: 2%"> </td>
<td style="text-align: center; width: 10%">Quoted prices in active markets</td>
<td style="text-align: center; width: 1%"> </td>
<td style="text-align: center; width: 11%">Significant other observable inputs</td>
<td style="text-align: center; width: 2%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: justify">(in thousands)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">(Level 1)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center"> </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center">(Level 2)</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: center">(Level 1)</td>
<td style="border-bottom: Black 0.5pt solid; text-align: center"> </td>
<td style="border-bottom: Black 0.5pt solid; text-align: center">(Level 2)</td>
<td style="border-bottom: Black 0.5pt solid; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; text-align: justify">Fair Value</td>
<td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="font-weight: bold; text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-style: italic; text-align: justify">Assets:</td>
<td> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="font-weight: bold; text-align: center"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td>
<td style="text-align: center"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">Cash equivalents</td>
<td> </td>
<td style="font-weight: bold; text-align: right"> $18,728</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> $-</td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> $13,601</td>
<td style="text-align: right"> </td>
<td style="text-align: right"> $-</td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">Prepaid expenses and other current assets:</td>
<td> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: left"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: left"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; text-align: left">   Foreign currency options</td>
<td> </td>
<td style="font-weight: bold; text-align: right">                 41</td>
<td style="text-align: left"> </td>
<td style="font-weight: bold; text-align: right">                -   </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif"> </td>
<td style="text-align: right">                -   </td>
<td style="text-align: center"> </td>
<td style="text-align: right">                 -   </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 18px; font-style: italic; text-align: left">Other Assets:</td>
<td> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 36px; text-align: left">Common stock of unaffiliated foreign public company <font style="font: normal 10pt Arial, Helvetica, Sans-Serif"><sup>(a)</sup></font></td>
<td> </td>
<td style="font-weight: bold; text-align: right">               962</td>
<td style="text-align: left"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="font: 11pt Calibri, Helvetica, Sans-Serif"> </td>
<td style="text-align: right">              999</td>
<td style="text-align: center"> </td>
<td style="text-align: right">                 -   </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 36px; text-align: left; padding-bottom: 2pt">Interest rate swaps<sup> </sup></td>
<td> </td>
<td style="font-weight: bold; text-align: right">                 -   </td>
<td style="text-align: left"> </td>
<td style="font-weight: bold; text-align: right">           8,985</td>
<td style="text-align: left; padding-bottom: 3pt"><sup>(b)</sup></td>
<td style="text-align: right">                -   </td>
<td style="text-align: right"> </td>
<td style="text-align: right">              313</td>
<td style="text-align: left; padding-bottom: 3pt"><sup>(c)</sup></td></tr>
<tr style="vertical-align: bottom">
<td style="padding-left: 36px; text-align: left; border-bottom: Black 1pt solid"> </td>
<td style="border-bottom: Black 1pt solid"> </td>
<td style="font-weight: bold; text-align: right; border-bottom: Black 1pt solid"> </td>
<td style="text-align: left; border-bottom: Black 1pt solid"> </td>
<td style="font-weight: bold; text-align: right; border-bottom: Black 1pt solid"> </td>
<td style="text-align: left; border-bottom: Black 1pt solid"> </td>
<td style="text-align: right; border-bottom: Black 1pt solid"> </td>
<td style="text-align: right; border-bottom: Black 1pt solid"> </td>
<td style="text-align: right; border-bottom: Black 1pt solid"> </td>
<td style="text-align: left; border-bottom: Black 1pt solid"> </td></tr>
</table>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 12pt 0 0 0.5in; text-indent: 0in"></p>
<p style="font: 8pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 1in; text-indent: 0in"> </p>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 10pt"><tr style="vertical-align: top">
<td style="width: 0.75in"></td><td style="width: 0.25in"><font style="font: 8pt Arial, Helvetica, Sans-Serif">(a)</font></td><td><font style="font: 8pt Arial, Helvetica, Sans-Serif">Original cost basis $0.5 million</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 10pt"><tr style="vertical-align: top">
<td style="width: 0.75in"></td><td style="width: 0.25in"><font style="font: 8pt Arial, Helvetica, Sans-Serif">(b)</font></td><td><font style="font: 8pt Arial, Helvetica, Sans-Serif">Net of $39.8 million receivable floating leg and $30.8 million liability
fixed leg</font></td></tr></table>
<table cellpadding="0" cellspacing="0" style="width: 100%; font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 10pt"><tr style="vertical-align: top">
<td style="width: 0.75in"></td><td style="width: 0.25in"><font style="font: 8pt Arial, Helvetica, Sans-Serif">(c)</font></td><td><font style="font: 8pt Arial, Helvetica, Sans-Serif">Net of $34.9 million receivable floating leg and $34.6 million liability
fixed leg</font></td></tr></table>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 4pt; margin-left: 0; text-indent: 0"><b><i>15.
Financial Instruments</i></b></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in"><b> </b></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">Long-term debt, principally to
banks and bondholders, consists of:</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0; text-indent: 0in"><b> </b></p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-align: center; text-indent: 0in"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 90%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif; margin-left: 0.5in">
<tr style="vertical-align: bottom">
<td style="width: 65%"> </td>
<td style="width: 12%"> </td>
<td style="width: 19%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid">(in thousands, except interest rates)</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center"> June 30, 2018</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: center">December 31, 2017</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: bottom">
<td>Revolving credit agreement with borrowings outstanding at an end of period interest rate of 3.58% in 2018 and 3.40% in 2017 (including the effect of interest rate hedging transactions, as described below), due in 2022</td>
<td style="font-weight: bold; text-align: right">$511,000</td>
<td style="text-align: right">$501,000</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: left">Obligation under capital lease, matures 2022                  </td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">14,030</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">            14,919</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left"> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Long-term debt</td>
<td style="font-weight: bold; text-align: right">525,030</td>
<td style="text-align: right">515,919</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid">Less: current portion</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">(1,844)</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">(1,799)</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="font-weight: bold; text-align: right"> </td>
<td style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: left">Long-term debt, net of current portion</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">$523,186</td>
<td style="border-bottom: Black 0.5pt solid; text-align: right">$514,120</td></tr>
</table>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-align: center; text-indent: 0in"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">On November 7, 2017, we entered
into a $685 million unsecured Five-Year Revolving Credit Facility Agreement (the “Credit Agreement”) which amended
and restated the prior $550 million Agreement, entered into on April 8, 2016 (the “Prior Agreement”). Under the Credit
Agreement, $511 million of borrowings were outstanding as of June 30, 2018. The applicable interest rate for borrowings was LIBOR
plus a spread, based on our leverage ratio at the time of borrowing. At the time of the last borrowing on June 18, 2018, the spread
was 1.500%. The spread was based on a pricing grid, which ranged from 1.250% to 1.750%, based on our leverage ratio. Based on our
maximum leverage ratio and our Consolidated EBITDA, and without modification to any other credit agreements, as of June 30, 2018,
we would have been able to borrow an additional $174 million under the Agreement.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The Credit Agreement contains customary
terms, as well as affirmative covenants, negative covenants and events of default comparable to those in the Prior Agreement. The
Borrowings are guaranteed by certain of the Company's subsidiaries.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">Our ability to borrow additional
amounts under the Credit Agreement is conditional upon the absence of any defaults, as well as the absence of any material adverse
change (as defined in the Credit Agreement).</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The Company has a long-term capital
lease obligation for real property in Salt Lake City, Utah. The lease has an implied interest rate of 5.0% and matures in 2022.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">The following schedule presents
future minimum annual lease payments under the capital lease obligation and the present value of the minimum lease payments, as
of June 30, 2018.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 12pt 0 0 0.5in; text-indent: 0.5in"> </p>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0.5in"></p>
<table border="0" cellpadding="0" cellspacing="0" style="width: 65%; border-collapse: collapse; font: 10pt Arial, Helvetica, Sans-Serif; margin-left: 0.5in">
<tr style="vertical-align: bottom">
<td style="width: 59%"> </td>
<td style="width: 27%"> </td></tr>
<tr style="vertical-align: bottom">
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid">Years ending December 31,</td>
<td style="font-weight: bold; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: right">(in thousands)</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">2018</td>
<td style="font-weight: bold; text-align: right">$1,236</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">2019</td>
<td style="font-weight: bold; text-align: right">2,473</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">2020</td>
<td style="font-weight: bold; text-align: right">2,520</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">2021</td>
<td style="font-weight: bold; text-align: right">2,520</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid; text-align: left">2022</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">7,373</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: left">Total minimum lease payments</td>
<td style="font-weight: bold; text-align: right">16,122</td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 0.5pt solid">Less:  Amount representing interest</td>
<td style="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: right">(2,092)</td></tr>
<tr style="vertical-align: bottom">
<td> </td>
<td style="font-weight: bold; text-align: right"> </td></tr>
<tr style="vertical-align: bottom">
<td style="border-bottom: Black 2pt double; text-align: left">Present value of minimum lease payments</td>
<td style="font-weight: bold; border-bottom: Black 2pt double; text-align: right">$14,030</td></tr>
</table>
<p style="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 10pt 0.5in; text-indent: 0.5in"></p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">On November 27, 2017, we terminated
our interest rate swap agreements, originally entered into on May 9, 2016, that had effectively fixed the interest rate on $300
million of revolving credit borrowings, in order to enter into a new interest rate swap with a greater notional amount, and the
same maturity as the Credit Agreement. We received cash of $6.3 million when the swap agreements were terminated and that payment
will be amortized into interest expense through March 2021.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">On May 6, 2016, we terminated other
interest rate swap agreements that had effectively fixed the interest rate on $120 million of revolving credit borrowings, in order
to enter into a new interest rate swap with a greater notional amount, and the same maturity as the Credit Agreement. We paid $5.2
million to terminate the swap agreements and that cost will be amortized into interest expense through June 2020.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">On November 28, 2017, we entered
into interest rate swap agreements for the period December 18, 2017 through October 17, 2022. These transactions have the effect
of fixing the LIBOR portion of the effective interest rate (before addition of the spread) on $350 million of indebtedness drawn
under the Credit Agreement at the rate of 2.11% during the period. Under the terms of these transactions, we pay the fixed rate
of 2.11% and the counterparties pay a floating rate based on the one-month LIBOR rate at each monthly calculation date, which on
June 18, 2018 was 2.09%, during the swap period. On June 18, 2018, the all-in-rate on the $350 million of debt was 3.61%.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">These interest rate swaps are accounted
for as a hedge of future cash flows, as further described in Note 16 of the Notes to Consolidated Financial Statements. No cash
collateral was received or pledged in relation to the swap agreements.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">Under the Credit Agreement, we are
currently required to maintain a leverage ratio (as defined in the agreement) of not greater than 3.75 to 1.00 for each fiscal
quarter ending prior to (but not including) September 30, 2019, and 3.50 to 1.00 for each fiscal quarter ending on or after September
30, 2019, and minimum interest coverage (as defined) of 3.00 to 1.00.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">As of June 30, 2018, our leverage
ratio was 2.23 to 1.00 and our interest coverage ratio was 10.73 to 1.00. We may purchase our Common Stock or pay dividends to
the extent our leverage ratio remains at or below 3.50 to 1.00, and may make acquisitions with cash provided our leverage ratio
does not exceed the limits noted above.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">Indebtedness under the Credit Agreement
is ranked equally in right of payment to all unsecured senior debt.</p>
<p style="font: 10pt Arial, Helvetica, Sans-Serif; margin: 0 0 10pt 0in; text-indent: 0.5in">We were in compliance with all debt
covenants as of June 30, 2018.</p>
Original cost basis $0.5 million
Included in Interest expense are payments related to the interest rate swap agreements and amortization of swap buyouts (see Note 15).
These accumulated other comprehensive income components are included in the computation of net periodic pension cost (see Note 4).
Net of $34.9 million receivable floating leg and $34.6 million liability fixed leg
Included in Interest expense are payments related to the interest rate swap agreements and amortization of swap buyouts (see Note 16).
These accumulated other comprehensive income components are included in Other expense, net (see Note 4). The curtailment adjustment was included in restructuring expenses, net.
Net of $39.8 million receivable floating leg and $30.8 million liability fixed leg
As described in Note 2, the Company adopted ASC 606 effective January 1, 2018, which resulted in a decrease to Retained earnings of $5.6 million and a $0.3 million decrease to Noncontrolling interest.
As described in Note 7, the Company adopted ASU 2016-16 effective January 1, 2018, which resulted in a $0.5 increase to Retained earnings.