Avon Rubber expects full-year pre-tax profits to be in line with currenty market forecasts.
The group's trading update for the five months ended 31 August says: "In Protection & Defence, we are pleased to announce that our unique CBRN/CO Escape Hood has received NIOSH approval and we have received an order worth $9m from a major US city police department for this new product, the majority of which will be delivered this financial year.
"Mask systems production has, as planned, been focused on fulfilling deliveries to the US Department of Defense under our 10 year sole source contract for the JSGPM M50 mask systems. We continue to see a number of higher margin export opportunities for military masks although, as always, the timing of order receipt is unpredictable; these opportunities remain live and are being progressed, albeit more slowly than previously expected, with the result that we now expect to receive and deliver these orders in our 2017 financial year."
It says: "General market conditions for dairy farmers have been weak for the majority of the period, as milk prices have been low. This cyclical market dynamic has, as expected, reduced demand for our consumable products as farmers overuse product to extend its life. This has been more noticeable in the InterPuls business where the nature of the product is more capital/semi-consumable than consumable.
"Milk prices in our major markets do, however, appear to have bottomed-out and have started to improve in the final quarter.
"The programme for the roll out of InterPuls products through existing Milkrite distribution in the US has commenced with the first revenues seen in the final quarter of the financial year.
"This, together with our expectation that the recent improvement in milk price will continue and positively impact demand for our products, leaves the Board confident of the ability of the Dairy business to make progress in 2017."
Chief executive Rob Rennie said: "The 2016 result demonstrates the robustness of our business and we exit the year as a stronger business looking forward to the many opportunities available to us in 2017."
Full year results for the year ended 30 September will be announced on 16 November.
At 9:13am: (LON:AVON) Avon Rubber PLC share price was +71p at 907p